4H 5EMA System | Page 107 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

TEB 5ema & 12ema and 21 RSI (MTF) 1,730 replies

5EMA hilo system, and EA Idea 18 replies

4H 5EMA System's EA 79 replies

4HR 5EMA Expert Advisor 42 replies

when 5EMA crosses out of 55LWMA channel 0 replies

Attachments: 4H 5EMA System
Exit Attachments

4H 5EMA System

  • #2,121
  • Dec 3, 2008 10:30am Dec 3, 2008 10:30am
Quoting Arnold49
I'll try to answer this,
if the current candle doesn't trigger the buy stop & doesn't make a new low then we leave everything as is,
if however, the next candle does the same, we put the 50% rule into operation (due to a greater than 150 pips trade)
and move the SL to half way between current SL & lowest low of the current trade.

Steve.
In my opinion its must be in half way between current OP and lowest low
It's give You 50% profit
good luck
Peter
  • #2,122
  • Dec 3, 2008 10:34am Dec 3, 2008 10:34am
Quick question about the application of the 50% rule:
IF this candle becomes the 2nd failed reversal bar:

If the current candle closes below 1.4771, then we move SL to 1.4771.
If the candle closes above 1.4771 at the end of the candle at 2PM ET, we close at the market rate at that time.

Is that correct or please correct me.

Also, would we place a BUY stop at the high of the candle if it sets up as a setup bar and the current short is closed?

Following these trades with you guys is tremendously helpful in understanding the system.

Thanks
  • #2,123
  • Dec 3, 2008 10:34am Dec 3, 2008 10:34am
Quoting pitpiter
In my opinion its must be in half way between current OP and lowest low
It's give You 50% profit
good luck
Peter
Pitpiter,

yes, that is correct, but in this case they are the same as we have not moved the SL, howerver yours is the technically correct answer.

Steve.
  • #2,124
  • Dec 3, 2008 10:49am Dec 3, 2008 10:49am
Quoting denverdude
Quick question about the application of the 50% rule:
IF this candle becomes the 2nd failed reversal bar:

If the current candle closes below 1.4771, then we move SL to 1.4771.
If the candle closes above 1.4771 at the end of the candle at 2PM ET, we close at the market rate at that time.

Is that correct or please correct me.

Also, would we place a BUY stop at the high of the candle if it sets up as a setup bar and the current short is closed?

Following these trades with you guys is tremendously helpful in understanding the system.

Thanks
...
Denverdude,

yes to the first part,

if the current bar closes the short trade due to the 50% rule,
its because it failed to make a new low, so it couldn't become a setup bar.

we would then be flat and waiting for a new setup bar.

Steve.
  • #2,125
  • Dec 3, 2008 1:01pm Dec 3, 2008 1:01pm
What was the entry point number for our current sell trade???
  • #2,126
  • Dec 3, 2008 1:03pm Dec 3, 2008 1:03pm
And what's
we have second fails reversal bar
stoploss for short back to basic and we don't have stoporder
now wait what show us next bar
current trade short
pr 1.4880
SL 1.5056
am I correct?
good luck
Peter
  • #2,127
  • Dec 3, 2008 1:04pm Dec 3, 2008 1:04pm
Invoked the 50% rule; locked in the sell's SL at 1.4771 (+109 pips), and canceled the pending buy. If we exit now at market price, there would be 50 more pips for the sell. Any thoughts..?
  • #2,128
  • Dec 3, 2008 1:14pm Dec 3, 2008 1:14pm
Quoting tonirai
The post from Arnold49 made me think of a possible "not covered by the rules" situation:

Imagine the current bar closes as it is, at which point we would apply the 50% rule and wait for a new setup bar;

But imagine the bar closes above the level at which we would put the orders by the 50% rule (which is now around 1.4771, it's the red line);
What do we do? Close the short and immediately reverse at the openning of the next bar (like if it was a weekend gap)?

Sterling, see the chart, imagine the bar has closed:
I think I may have posted a post number on one of the rules where I already covered this. The rule was you just close out the trade immidetly when the next bar starts.

-Sterling
Founder of Day Trading Forex Live
  • #2,129
  • Dec 3, 2008 1:21pm Dec 3, 2008 1:21pm
Quoting CitiTrade
Invoked the 50% rule; locked in the sell's SL at 1.4771 (+109 pips), and canceled the pending buy. If we exit now at market price, there would be 50 more pips for the sell. Any thoughts..?
I welcome anyone to trade this system the way they want to. But, I also say you know what this system averages so without backtesting a new way to TP and just doing it here and there would be foolish. All it takes is one time of doing that and missing another 500 pips to screw a month up.

-Sterling
Founder of Day Trading Forex Live
  • #2,130
  • Dec 3, 2008 1:29pm Dec 3, 2008 1:29pm
Quoting pitpiter
And what's
we have second fails reversal bar
stoploss for short back to basic and we don't have stoporder
now wait what show us next bar
current trade short
pr 1.4880
SL 1.5056
am I correct?
good luck
Peter
No. At one point your sell was in profit of over 150 pips (in fact it was 1.4880 - the lowest ever of 1.4662 = 218 pips). And you get 2 failed reversal bars, so you have no place to place the SL. This is when you invoke the 50% rule. 218/2 = 109 pips. 1.4662 + 109 = 1.4771 which is the level where you place the sl to lock in some profit. Cancel the pending buy, and now wait for the next setup bar.
  • #2,131
  • Dec 3, 2008 1:30pm Dec 3, 2008 1:30pm
Quoting stersuhr
I welcome anyone to trade this system the way they want to. But, I also say you know what this system averages so without backtesting a new way to TP and just doing it here and there would be foolish. All it takes is one time of doing that and missing another 500 pips to screw a month up.

-Sterling
True. It already happened to me once. So I am keeping this one for the system and I didn't cash it.
  • #2,132
  • Dec 3, 2008 1:38pm Dec 3, 2008 1:38pm
Quoting CitiTrade
True. It already happened to me once. So I am keeping this one for the system and I didn't cash it.
But thats not saying there is not a more profitable way to take profits, it just has to be tested for a while. And when you do impliment a new way of doing anything you have to have hard rules to keep the system mechanical if thats what you or whoever is going for.

-Sterling
Founder of Day Trading Forex Live
  • #2,133
  • Dec 3, 2008 1:42pm Dec 3, 2008 1:42pm
Quoting stersuhr
But thats not saying there is not a more profitable way to take profits, it just has to be tested for a while. And when you do impliment a new way of doing anything you have to have hard rules to keep the system mechanical if thats what you or whoever is going for.

-Sterling
BTW, now any setup bar will be good enough (short or long)?
  • #2,134
  • Dec 3, 2008 2:13pm Dec 3, 2008 2:13pm
Quoting CitiTrade
BTW, now any setup bar will be good enough (short or long)?
Yup it just has to break a EMA by 5 pips or more. The previous lows are ignored because the trade was cancelled. You should have the 50% stop in but no buy order right now. Well I guess technically to close the short you have to buy but you guys know what I mean....atleast I hope you do lol.

-Sterling
Founder of Day Trading Forex Live
  • #2,135
  • Dec 3, 2008 2:16pm Dec 3, 2008 2:16pm
Quoting CitiTrade
No. At one point your sell was in profit of over 150 pips (in fact it was 1.4880 - the lowest ever of 1.4662 = 218 pips). And you get 2 failed reversal bars, so you have no place to place the SL. This is when you invoke the 50% rule. 218/2 = 109 pips. 1.4662 + 109 = 1.4771 which is the level where you place the sl to lock in some profit. Cancel the pending buy, and now wait for the next setup bar.
As for me You forgot it's make happend , just if next bar don't be set up bar and after that we apply 50% rules , second faild reversal bar close below line about talk Toni , but may be I'm wrong , can somebody profi in this system say any wards about what realy do in sitiuation like that?
thanks
good luck
Peter
  • #2,136
  • Dec 3, 2008 2:45pm Dec 3, 2008 2:45pm
Quoting pitpiter
As for me You forgot it's make happend , just if next bar don't be set up bar and after that we apply 50% rules , second faild reversal bar close below line about talk Toni , but may be I'm wrong , can somebody profi in this system say any wards about what realy do in sitiuation like that?
thanks
good luck
Peter
Pitpiter,

if you are still short all you need to do is put your SL at 1.4771.
when the current bar closes it will be a setup bar, then you will move your SL to the top of that bar (+5 +spread) and then put a buystop in the same place with it's SL at the bottom of the bar (-5 pips)

is that what you wanted to know?

Steve.
  • #2,137
  • Dec 3, 2008 2:58pm Dec 3, 2008 2:58pm
Quoting Arnold49
Pitpiter,

if you are still short all you need to do is put your SL at 1.4771.
when the current bar closes it will be a setup bar, then you will move your SL to the top of that bar (+5 +spread) and then put a buystop in the same place with it's SL at the bottom of the bar (-5 pips)

is that what you wanted to know?

Steve.
I sill in short , it's not problem - it's demo account , when I test my pro
I just want know how correctly must be moving in situation like that with the rules. Because if I'm wrong , I need make some correction in pro
that's it

good luck
Peter
  • #2,138
  • Dec 3, 2008 5:10pm Dec 3, 2008 5:10pm
Quoting tonirai
The post from Arnold49 made me think of a possible "not covered by the rules" situation:

Imagine the current bar closes as it is, at which point we would apply the 50% rule and wait for a new setup bar;

But imagine the bar closes above the level at which we would put the orders by the 50% rule (which is now around 1.4771, it's the red line);
What do we do? Close the short and immediately reverse at the openning of the next bar (like if it was a weekend gap)?

Sterling, see the chart, imagine the bar has closed:
Can you clarify this please -there appears to be two failed reversal bars here after the initial set up bar to go long -the first of which should have triggered the 50% rule should it not?
  • #2,139
  • Dec 3, 2008 5:31pm Dec 3, 2008 5:31pm
Quoting petersurrey
Can you clarify this please -there appears to be two failed reversal bars here after the initial set up bar to go long -the first of which should have triggered the 50% rule should it not?

So if your 50% got triggered then you will take you profit and look for a set up bar. You should have a buy stop in the market right now because you had two failed reversal bars and the one that started at 2 pm eastern time is you new set up bar.
  • #2,140
  • Dec 3, 2008 5:37pm Dec 3, 2008 5:37pm
Quoting petersurrey
Can you clarify this please -there appears to be two failed reversal bars here after the initial set up bar to go long -the first of which should have triggered the 50% rule should it not?
Just in case Toni is not logging on today, the answer is no. You need to have 2 failed reversal bars to use the 50% rule, because it is used when you're out of a trade usually (you usually would cancel the pending order in case you didn't get a reversal bar in two attempts), but in this case not only do you have a pending order but also you still have a trade in the market which is making money which you need a way to lock, thus the 50% rule. We invoked it earlier and locked 109 pips with an SL which got triggered later.
0 traders viewing now