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4H 5EMA System

  • #1,621
  • Nov 25, 2008 8:51pm Nov 25, 2008 8:51pm
honestly I understood the mechanism of this system and seems to be pretty amazing, by the way, congratulations for your idea and thank you for sharing.

The entry moment idea (sorry for my english) is the fact that your system doesn't have an "immediate" entry point but it places orders and they triggers on their own when the market goes there.

and this seems to work with many other things so, again, thank you very much for sharing.

That's all what I wanted to tell you
  • #1,622
  • Nov 25, 2008 9:07pm Nov 25, 2008 9:07pm
so our trade has been triggered short at 1.5378 SL 1.5541

..and since the reversal bar has closed, we also enter a buy stop at 1.5541
  • #1,623
  • Nov 25, 2008 9:15pm Nov 25, 2008 9:15pm
Quoting ybeidas
so our trade has been triggered short at 1.5378 SL 1.5541

..and since the reversal bar has closed, we also enter a buy stop at 1.5541
You got it.

-Sterling
Founder of Day Trading Forex Live
  • #1,624
  • Nov 25, 2008 9:32pm Nov 25, 2008 9:32pm
Quoting Corre
honestly I understood the mechanism of this system and seems to be pretty amazing, by the way, congratulations for your idea and thank you for sharing.

The entry moment idea (sorry for my english) is the fact that your system doesn't have an "immediate" entry point but it places orders and they triggers on their own when the market goes there.

and this seems to work with many other things so, again, thank you very much for sharing.

That's all what I wanted to tell you
Oh ok I see what you mean. Thanks for posting, and I hope to see you around more.

-Sterling
Founder of Day Trading Forex Live
  • #1,625
  • Nov 25, 2008 10:25pm Nov 25, 2008 10:25pm
Assume that you are trading the 4 hour chart

Imagine that a setup candle has occured, and, on the next candle, you are now in a position to make a buy stop or a sell stop. In this example assume we setting a buy stop trade at the start of a new 4 hour candle. Initially your trade gets triggered, somewhere in the 4 hr time frame. You start showing a profit and then suddenly, again in the same candle, the trade goes against you and hits your stop loss. Using the method in this thread, we need to reverse our trade at the stop loss, but how can you do that at the exact point where the stop loss occurs, if you are not in front of your computer.

My question is: Is it possible to do a pending order and a "stop and reverse" order at the same time? Which Forex brokers allow "stop and reverse" orders?

Any answer to these questions would be appreciated
  • #1,626
  • Nov 25, 2008 10:36pm Nov 25, 2008 10:36pm
Quoting Romex
Assume that you are trading the 4 hour chart

Imagine that a setup candle has occured, and, on the next candle, you are now in a position to make a buy stop or a sell stop. In this example assume we setting a buy stop trade at the start of a new 4 hour candle. Initially your trade gets triggered, somewhere in the 4 hr time frame. You start showing a profit and then suddenly, again in the same candle, the trade goes against you and hits your stop loss. Using the method in this thread, we need to reverse our trade at the stop loss, but how can you...

If your go over the rules you will see we only put in the reverse trade order after the candle that triggered the order you are talking of has finished, for now while said candle is forming you only have a stop loss, and if the stop loss is hit the same bar you just sit out of the market until another valid setup bar occurs, this is just the way the system is designed, it states this in rules on first page.
All MT4 brokers allow you to place a stoploss on an order and also a pending buy stop or sell stop at the same time, effectively placing your stoploss for current order at the same price as a new pending buy/sell stop is the same as a "stop and reverse" you talk of.

* Sterlings rule from first page:
2.) If you get stopped out you then reverse the trade. If you are long and get stopped out you enter short when you get stopped out. So not only do you have your stop in the market but you also have your order to change the direction of the trade should you get stopped out. Only put a trade to go the other direction in the market after a proper reversal bar closes.

Hope this helps.
  • #1,627
  • Nov 25, 2008 11:21pm Nov 25, 2008 11:21pm
Quoting Romex
Assume that you are trading the 4 hour chart

Imagine that a setup candle has occured, and, on the next candle, you are now in a position to make a buy stop or a sell stop. In this example assume we setting a buy stop trade at the start of a new 4 hour candle. Initially your trade gets triggered, somewhere in the 4 hr time frame. You start showing a profit and then suddenly, again in the same candle, the trade goes against you and hits your stop loss. Using the method in this thread, we need to reverse our trade at the stop loss, but how can you...
I think Viper already answered this but I also wanted to say why we only put the reversal order in once the reversal bar closes. We do this to keep us fro a bunch of whipsaws. Hope this answers the question.

-Sterling
Founder of Day Trading Forex Live
  • #1,628
  • Nov 26, 2008 1:00am Nov 26, 2008 1:00am
k...at the close of this candle we should still be in our short position...nothing has changed....its quite an ominous hammer though lol
  • #1,629
  • Nov 26, 2008 1:05am Nov 26, 2008 1:05am
Quoting ybeidas
k...at the close of this candle we should still be in our short position...nothing has changed....its quite an ominous hammer though lol
"pin bar"? Ive never heard that before. What does it mean. Ill be home in about 30 minutes and do the chart to bring us to current when I get there.

-Sterling
Founder of Day Trading Forex Live
  • #1,630
  • Nov 26, 2008 1:13am Nov 26, 2008 1:13am
i edited my post sterling....coz i believe i was mistaken at first and its not a true pin bar but more like a hammer...

but FYI
http://www.forexfactory.com/images/buttons/lastpost.gif (http://www.forexfactory.com/attachment.php?attachmentid=43133) Pin bars: introductory tutorial (http://www.forexfactory.com/attachment.php?attachmentid=43133)
  • #1,631
  • Nov 26, 2008 1:58am Nov 26, 2008 1:58am
Quoting ybeidas
i edited my post sterling....coz i believe i was mistaken at first and its not a true pin bar but more like a hammer...

but FYI
http://www.forexfactory.com/images/buttons/lastpost.gif (http://www.forexfactory.com/attachment.php?attachmentid=43133) Pin bars: introductory tutorial (http://www.forexfactory.com/attachment.php?attachmentid=43133)
Hi,

why did you enter a buy stop 4 hours ago?
  • #1,632
  • Nov 26, 2008 1:58am Nov 26, 2008 1:58am
Quoting Corre
I hope we'll be soon able to use your EA on GBPUSD and this new system on several pairs to improve our pip/month ratio and our risk diversification/management.
I follow this thread everyday and dont post much, but now I feel the need to ask to several posters why they keep looking further if a profitable system is on the table. I see several postings asking what settings to use for other pairs. I really don't understand why.

I am/was a EURUSD fan myself so far, but this system is so simple and so effective that I don't even bother to try implementing it on EURUSD. If this system generates profits most of the times, which it does, just multiply your contracts. Dont waste your and Sterlings time finding the settings for other currencies. I believe GU is liquid enough so there is profit enough for anyone.

Of course this is just my opinion.

Sterling thanks for spending so much time explaining your system !
  • #1,633
  • Nov 26, 2008 2:08am Nov 26, 2008 2:08am
Quoting Beaker1970
I follow this thread everyday and dont post much, but now I feel the need to ask to several posters why they keep looking further if a profitable system is on the table. I see several postings asking what settings to use for other pairs. I really don't understand why.

I am/was a EURUSD fan myself so far, but this system is so simple and so effective that I don't even bother to try implementing it on EURUSD. If this system generates profits most of the times, which it does, just multiply your contracts. Dont waste your and Sterlings time finding...
Yeah I conpletly agree with everything with everything in you post. If anything I would recommend, if you want to diversify or make the equity curve "flatter" just using this same system on the G/U still but use a different 4H close. We have all seen that when one 4 close time is up the other is sometimes down. Using both would be great and very profitable. Now I know an EA is needed for this and thats being worked on. A room was already created for this and all EA discussion. People are working very hard to provide this for all of you and it will be out soon and we can all use both 4H close times

-Sterling
Founder of Day Trading Forex Live
  • #1,634
  • Nov 26, 2008 2:12am Nov 26, 2008 2:12am
Quoting stersuhr
...

-Sterling
Oh, glad you're still up sterling. I just woke up (I am ion est +7 time zone), and read through this page and found that you've approved a buy stop to be entered as well (a reverse order). But we're short now from the order which was triggered two bars ago. What gives? why the buy stop? thx
  • #1,635
  • Nov 26, 2008 2:15am Nov 26, 2008 2:15am
Quoting CitiTrade
Hi,

why did you enter a buy stop 4 hours ago?
Are you asking me that. I never did enter a buy stop if your asking me.

-Sterling
Founder of Day Trading Forex Live
  • #1,636
  • Nov 26, 2008 2:17am Nov 26, 2008 2:17am
Quoting stersuhr
Are you asking me that. I never did enter a buy stop if your asking me.

-Sterling
post number 1623
  • #1,637
  • Nov 26, 2008 2:30am Nov 26, 2008 2:30am
Quoting CitiTrade
post number 1623
Thats the reversal trade for are current sell.

-Sterling
Founder of Day Trading Forex Live
  • #1,638
  • Nov 26, 2008 3:29am Nov 26, 2008 3:29am
Trade #25 - We went long from 1.4942 and exited when we got a signal to go short at 1.4856 for a -86 pip loss

Trade #26 - Was triggered at 1.4856 and was stopped out in the same bar at 1.4974 for a -118 pip loss.

Trade #27 - We went short from 1.5378 and have a current stop of 1.5541 The trade is currently -40 pips or so. We also have GDP out of the UK tonight and most likely that will help this trade.

For this month we are up +423 for the month. Hopefully we can do a little better than that by month end.

-Sterling
Attached Image (click to enlarge)
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Founder of Day Trading Forex Live
  • #1,639
  • Nov 26, 2008 4:23am Nov 26, 2008 4:23am
Hey Guys,
I am up to speed on jsuyt abotu everything excpet the reverse trade so if we are short now is the stop a reverse trade aswell?

Thanks for your help
  • #1,640
  • Nov 26, 2008 4:27am Nov 26, 2008 4:27am
Quoting sutters
Hey Guys,
I am up to speed on jsuyt abotu everything excpet the reverse trade so if we are short now is the stop a reverse trade aswell?

Thanks for your help
In whatever trade you take long or short, once the reversal bar closes you put a reversal trade at the same location as the stoploss. There is a really good explination and post number you can go look at to determine the stop loss for the reversal trade that is located on the first page. Hope this helps.

-Sterling
Founder of Day Trading Forex Live
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