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4H 5EMA System

  • #1,741
  • Nov 27, 2008 7:46am Nov 27, 2008 7:46am
woops yes sorry, the brake of the upper line means short *_*
  • #1,742
  • Nov 27, 2008 8:41am Nov 27, 2008 8:41am
Just going over last month's (Oct/2008) daily chart, using this variation would have generated you over 2500 pips. The best thing is you only need to be in front of your computer once a day and the trades are absolutely emotion free. So here is my variation, which is based completely on price action and nothing else.

1. Every candle Is a setup candle. Therefore there is no need for the 5 EMAs.

2. At the start of a new daily candle, enter a buy stop (at the hi of the previous daily candle); and a sell stop(at the lo of the previous daily candle). In other words you set 2 pending orders. When one pending trade is triggered you must automatically cancel the other pending trade. Each pending order will have a SL, and a TP based on the previous daily candle. If the trade, that gets triggered, is a long trade your SL would be the the lo of the previous day's candle and your take profit would be the same amount of Pips as your SL. Additionally if a a stop loss gets triggered you must be able to reverse the trade (at the same instant) - ie. if long you start going short at the SL. Visa versa and the same logic applies if you are in a short trade.

3. You only exit when you TP target is reached; and start the cycle once again on the next daily candle.

4. You only do one stop and reverse. After the first stop and reverse you must take your profit or loss, whatever it might be. I will let you decide what the new SL and TP should be.

Finally I have not actually traded the system yet. By going back to any previous month you can see for yourself whether the system is doable for you. The problem with this system is how to set it in MT4 or any other software by a different forex Broker. Please see my next post, which I also posted on another thread
  • #1,743
  • Nov 27, 2008 8:42am Nov 27, 2008 8:42am
Can someone answer the following question:

Imagine that you a full time job and are unable to monitor your trades during the day. You are going to be trading the daily chart, and the only time you can set your trades is when the daily candle opens.

The trading strategy is a simple one and is the following:

At the close of the previous day's candle. You want to set 2 pending orders. One long trade when the price first goes higher than a predetermined price, and one short trade where the price first goes lower than a predetermined level. Once one trade is triggered, the other automatically gets cancelled (if then). Each pending order will also have a predetermined stop loss and take profit.
The other stipulation is; if and when a trade gets triggered and the stop loss is hit, the trade automatically reverses to go in the other direction (stop and reverse).

My question is, can all these trades be made at the start of a new candle in Metatrader? If this is not possible in MT4, which Forex broker (http://www.forexfactory.com/brokers.php) has a software that will allow you to do this?

Any and all answers would be deeply appreciated
  • #1,744
  • Nov 27, 2008 8:47am Nov 27, 2008 8:47am
Hi everyone,

My first trade using this system, hope it is correct as per rules.

SHORT trade triggered @ 1.54100 SL 1.55186

Broker is GMT + 2, Setup candle open: 5 ET

Thanks
Peace
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  • #1,745
  • Nov 27, 2008 8:48am Nov 27, 2008 8:48am
Previously I wrote:

1. Every candle Is a setup candle. Therefore there is no need for the 5 EMAs.

Actually what I meant is that every candle is a setup candle if the candle touches the lower, higher, or Both EMAs, Or if the candle is completely outside or inside the +5/-5 EMA band.
  • #1,746
  • Nov 27, 2008 9:10am Nov 27, 2008 9:10am
Quoting Romex
Previously I wrote:

1. Every candle Is a setup candle. Therefore there is no need for the 5 EMAs.

Actually what I meant is that every candle is a setup candle if the candle touches the lower, higher, or Both EMAs, Or if the candle is completely outside or inside the +5/-5 EMA band.
What is the use of EMAs then?
Regards
  • #1,747
  • Nov 27, 2008 9:16am Nov 27, 2008 9:16am
Quoting Romex
Can someone answer the following question:

Imagine that you a full time job and are unable to monitor your trades during the day. You are going to be trading the daily chart, and the only time you can set your trades is when the daily candle opens.

The trading strategy is a simple one and is the following:

At the close of the previous day's candle. You want to set 2 pending orders. One long trade when the price first goes higher than a predetermined price, and one short trade where the price first goes lower than a predetermined level. Once...
You cannot do this on MT4 but there are other platforms where you can do it
Regards
  • #1,748
  • Nov 27, 2008 9:25am Nov 27, 2008 9:25am
Short @ 1.5370 with double top and divergence should help this to move down...
  • #1,749
  • Nov 27, 2008 9:27am Nov 27, 2008 9:27am
looks like this month will end up flat like last one
we were up +800 pips 10 days ago, now up only 250
last 5 trades have been -155, -155, -25, -104, -82
  • #1,750
  • Nov 27, 2008 9:33am Nov 27, 2008 9:33am
@ Romex;

Yes, you can do all that you described with an EA on MT4.

Edit: Your strat. seems very easy to code.

TimeFreedom

Quoting Romex
Can someone answer the following question:

Imagine that you a full time job and are unable to monitor your trades during the day. You are going to be trading the daily chart, and the only time you can set your trades is when the daily candle opens.

The trading strategy is a simple one and is the following:

At the close of the previous day's candle. You want to set 2 pending orders. One long trade when the price first goes higher than a predetermined price, and one short trade where the price first goes lower than a predetermined level. Once one trade is triggered, the other automatically gets cancelled (if then). Each pending order will also have a predetermined stop loss and take profit.
The other stipulation is; if and when a trade gets triggered and the stop loss is hit, the trade automatically reverses to go in the other direction (stop and reverse).

My question is, can all these trades be made at the start of a new candle in Metatrader? If this is not possible in MT4, which Forex broker (http://www.forexfactory.com/brokers.php) has a software that will allow you to do this?

Any and all answers would be deeply appreciated
  • #1,751
  • Nov 27, 2008 9:38am Nov 27, 2008 9:38am
Quoting denverdude
Hi everyone,

My first trade using this system, hope it is correct as per rules.

SHORT trade triggered @ 1.54100 SL 1.55186

Broker is GMT + 2, Setup candle open: 5 ET

Thanks
Peace
It seems correct per your chart. Alpari (US and UK) are showing a different looking setup candle with a lower closing price and a lower low Thusly my values are: SS =1.5370 and SL = 1.5518
  • #1,752
  • Nov 27, 2008 9:44am Nov 27, 2008 9:44am
Quoting ziko123
looks like this month will end up flat like last one
we were up +800 pips 10 days ago, now up only 250
last 5 trades have been -155, -155, -25, -104, -82
There was a +5 three trades ago.
  • #1,753
  • Nov 27, 2008 10:27am Nov 27, 2008 10:27am
Quoting PowerBySol
a while ago I mentioned I was going to write up a cheat sheet for this system. Something you could use while you are learning the system, or when you just can't seem to focus during that early morning candle check. I think I have everything in it, except for the 50% rule. I need to work on my next class now and don't know when I will get back to this. I figured I will post it and if anyone finds it interesting please check my logic on it and let me know if I got something wrong or if something doesn't make sense. If you have a suggestion on how...
Am I the only one who appreciate your clarification of the rules?
I think you did a great job - the if_then approach really make the rules easier to understand.
I recommend all to read it. Most posts in this thread are questions regarding the rules - your doc answers them all. Deserves to be in post 1 (Stersuhr).
to you!
finnsol
  • #1,754
  • Nov 27, 2008 10:41am Nov 27, 2008 10:41am
Hey can someone explain me what is the difference between this strategy and envelope indicator?
Because I can set an indicator call envelopes in my MT4 and it’s just like this.
Plus there is an expert advisor that uses this strategy.
I think it’s a good strategy
–I don’t feel comfortable with envelopes, I prefer Bollinger Bands-
But why change the name and why show it so complicated?
  • #1,755
  • Nov 27, 2008 11:58am Nov 27, 2008 11:58am
quote=AngelaTrix;2381792]Hey can someone explain me what is the difference between this strategy and envelope indicator?
Because I can set an indicator call envelopes in my MT4 and it’s just like this.
Plus there is an expert advisor that uses this strategy.
I think it’s a good strategy
–I don’t feel comfortable with envelopes, I prefer Bollinger Bands-
But why change the name and why show it so complicated?[/quote]


You have to read the rules, go through the thread, try to trade accordingly, ask the ??? regarding this strategy here and after complete understanding you'll see answers to all your ????? and preferences.
Please respect creator of this system and all people who is applying personal time and efforts to this thread. Respectfully, Bay.
  • #1,756
  • Nov 27, 2008 12:38pm Nov 27, 2008 12:38pm
Quoting Romex
Just going over last month's (Oct/2008) daily chart, using this variation would have generated you over 2500 pips. The best thing is you only need to be in front of your computer once a day and the trades are absolutely emotion free. So here is my variation, which is based completely on price action and nothing else.

1. Every candle Is a setup candle. Therefore there is no need for the 5 EMAs.

2. At the start of a new daily candle, enter a buy stop (at the hi of the previous daily candle); and a sell stop(at the lo of the previous daily...

Please open another thread.....don't try to change a succesfull system

your idea is of course appreciated, every idea to make money is, but your idea looks like another system and than it might confuse people.
  • #1,757
  • Edited 1:15pm Nov 27, 2008 1:13pm | Edited 1:15pm
Current situation:

We're:

short at 1.5370 with SL at 1.5518

Reversal bar just closed (10am to 2pm EST) so we entered a reverse order:

Buy Stop at 1.5518
Stop Loss at 1.5336 (which is the reversal bar's low 1.5341 - 5)

Confirmed?
  • #1,758
  • Nov 27, 2008 1:23pm Nov 27, 2008 1:23pm
That's what I have CitiTrade -
  • #1,759
  • Nov 27, 2008 1:26pm Nov 27, 2008 1:26pm
if the current short fails then we will be -150 on it and the month total will be +100, let us hope it doesn't fail
  • #1,760
  • Nov 27, 2008 1:32pm Nov 27, 2008 1:32pm
Quoting finnsol
Am I the only one who appreciate your clarification of the rules?
Thanks Finnsol - please keep in mind that it is not yet a complete doc, as it says right at the top. Use it to help you understand Sterling's instructions and be sure to follow his rules. I'm glad it helps and you're feedback helps me motivate to finish it ;-} Instead, I could spend a year doing nothing but reading posts on this forum
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