Hi pple,
This is going to be my dare devil attempt to start a new thread on a strategy which I believe could be of good potential. I learn about this strategy from an equity options course I took some time back and thought I'd try this on Forex.
But first, a disclaimer:
- I've yet to go live with this strategy
- I'm not saying that this works but I've been doing quite a fair bit of back testing and forward testing on a demo account and the results seems good.
- I'm starting this thread to get more brains and ideas about this strategy and hopefully the contributions to this thred could make it a successful one.
- I am not going to talk about MM here as I believe you can get a good grasp of it from the other threads.
Ok here it goes...
Time Frame:
- Daily for longer term
- H1 for intraday
- 15 min for scalping
Indicators:
1) 22 SMA
2) 50 SMA
3) 200 SMA
4) Stoch (15,3,10)
5) MACD (8,17,9)
Long Entry:
- Signal bar: when bar closed above any SMA
- Stochs pointing up
- MACD pointing up
Conservative approach:
- Confirmation bar: Closed above the signal bar
- Entry at open of next bar
Aggressive approach:
- Entry at high+spread of the current bar
SL: Low of signal bar or lower SMA
TP: Nearest SMA above signal bar or nearest pivot or S&R line
Short Entry:
- Signal bar: when bar closed below any SMA
- Stochs pointing up
- MACD pointing down
Conservative approach:
- Confirmation bar: Closed below the signal bar
- Enter at next bar open
Aggressive approach:
- Entry at low+spread of the current bar
SL: High of signal bar or higher SMA
TP: Nearest SMA below signal bar or nearest pivot or S&R line
#IMPORTANT!
- Calculate Risk:Reward ratio, must be 1:1 at least
- If the SMA where the signal bar crossed and TP SMA is too close, DO NOT TAKE THE TRADE!
This is going to be my dare devil attempt to start a new thread on a strategy which I believe could be of good potential. I learn about this strategy from an equity options course I took some time back and thought I'd try this on Forex.
But first, a disclaimer:
- I've yet to go live with this strategy
- I'm not saying that this works but I've been doing quite a fair bit of back testing and forward testing on a demo account and the results seems good.
- I'm starting this thread to get more brains and ideas about this strategy and hopefully the contributions to this thred could make it a successful one.
- I am not going to talk about MM here as I believe you can get a good grasp of it from the other threads.
Ok here it goes...
Time Frame:
- Daily for longer term
- H1 for intraday
- 15 min for scalping
Indicators:
1) 22 SMA
2) 50 SMA
3) 200 SMA
4) Stoch (15,3,10)
5) MACD (8,17,9)
Long Entry:
- Signal bar: when bar closed above any SMA
- Stochs pointing up
- MACD pointing up
Conservative approach:
- Confirmation bar: Closed above the signal bar
- Entry at open of next bar
Aggressive approach:
- Entry at high+spread of the current bar
SL: Low of signal bar or lower SMA
TP: Nearest SMA above signal bar or nearest pivot or S&R line
Short Entry:
- Signal bar: when bar closed below any SMA
- Stochs pointing up
- MACD pointing down
Conservative approach:
- Confirmation bar: Closed below the signal bar
- Enter at next bar open
Aggressive approach:
- Entry at low+spread of the current bar
SL: High of signal bar or higher SMA
TP: Nearest SMA below signal bar or nearest pivot or S&R line
#IMPORTANT!
- Calculate Risk:Reward ratio, must be 1:1 at least
- If the SMA where the signal bar crossed and TP SMA is too close, DO NOT TAKE THE TRADE!