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4H 5EMA System

  • #2,741
  • Jan 21, 2009 6:54pm Jan 21, 2009 6:54pm
Here are the rules applied to the Daily timeframe.
The various tweaks are summarised at the end for those familiar with the 4 hr rules.
Tweak three is kind of advisory - it's hard to find too many examples but it seems to work more times than not...investigate for yourselves!

Thanks Howard for doing the editing!

Sterling - come back!
I hope we're not going off topic with daily discussion on your 4 hr thread?
Let us know - we can start a new thread if so.

And a final personal note - thanks to Sterling's original idea, I'm making good money already off this system and that's why I'm giving back to this thread. It's easy to adopt a system like this then vanish with your profits but folks like Tonirai, Howard and all the others come back every day just to share their knowledge - and for that I'm in their debt too. It's not often you come across a bunch of guys, from so many different countries, so willing to give their time and effort to help others (if only governments could act like this - lol!!!). If in a few months or years you're sitting on your yacht or by your pool wondering what to do with all the money you've made - go to your country's UNICEF website and give back to some folks who don't have the opportunity to do this.
Attached File(s)
File Type: doc Daily 5 EMA System.doc   667 KB | 1,964 downloads
You don't have to be right, just don't be too wrong
  • #2,742
  • Jan 21, 2009 7:00pm Jan 21, 2009 7:00pm
It's my turn now...
Well said, mate
Thanks for the update about the daily trades.
  • #2,743
  • Jan 21, 2009 9:33pm Jan 21, 2009 9:33pm
@ El Dee & Tonirai;

I appreciate you taking the time to write-up the new Daily strat. and hope I can contribute as you have to this great forum in the near future.

TimeFreedom
  • #2,744
  • Edited 10:26pm Jan 21, 2009 9:49pm | Edited 10:26pm
Thanks a lot ELdee for documenting your tweaks. You said you already making money off this system. 4 hour or Daily?

I really appreciate your efforts/time for these documents and thanks to others who participate in this thread.

I guess, If one can approach the rules of the system in a way one attempts to write an EA, it will be more helpful and I feel one can better understand the system. Once we have an EA which follows the rules EXACTLY, we can back test and see the performance more correctly.

Thanks again. Ofcourse major credit goes to Sterling, Howard and others who put their time/help.


IKent.
  • #2,745
  • Jan 22, 2009 1:57am Jan 22, 2009 1:57am
I have a little doubt now: is bar #1 a short setup bar since its high was lower than the previous blue bar? Strictly according to the definition it should be, but this wouldn't match the talk we were having about S/R yesterday. Of course if it is so, we should be short now from 1.3828. I wouldn't mind the opinion of an expert here. Thanks.
Attached Image
  • #2,746
  • Jan 22, 2009 2:01am Jan 22, 2009 2:01am
Setup bar for short must have higher high then previous bar. In this case it has a lower high which means that it is not a setup bar. But previous bar touches both EMAs so the previous bar is disregarded as a setup bar and now bar 1 is eligeble to become the setup bar.

Quoting alright
I have a little doubt now: is bar #1 a short setup bar since its high was lower than the previous blue bar? Strictly according to the definition it should be, but this wouldn't match the talk we were having about S/R yesterday. Of course if it is so, we should be short now from 1.3828. I wouldn't mind the opinion of an expert here. Thanks.
  • #2,747
  • Jan 22, 2009 2:40am Jan 22, 2009 2:40am
Quoting IKent
Thanks a lot ELdee for documenting your tweaks. You said you already making money off this system. 4 hour or Daily?

I really appreciate your efforts/time for these documents and thanks to others who participate in this thread.

I guess, If one can approach the rules of the system in a way one attempts to write an EA, it will be more helpful and I feel one can better understand the system. Once we have an EA which follows the rules EXACTLY, we can back test and see the performance more correctly.

Thanks again. Ofcourse major credit goes...
Hi IKent,
Yes EA on this would be great - it would reduce my maintenance time from 5 mins / day to zero (and help to optimise of course!)
I'm trading it on Daily, recent results on post 2652, final position:
19/01/09 Sell 614 locked in, still open
You don't have to be right, just don't be too wrong
  • #2,748
  • Jan 22, 2009 3:03am Jan 22, 2009 3:03am
Just to confirm what Alex said;
Bars touching both EMAs are disregarded.
So the bar is a setup bar. After it, we had a failed reversal bar, followed by a proper reversal bar, and we are now short.
  • #2,749
  • Jan 22, 2009 3:17am Jan 22, 2009 3:17am
About the latest coments about an EA, to the more recent visitors of this thread:

And EA has been coded, but because it followed the rules in the first post, which are confusing, it had some bugs;
After El Dee posted his rule's doc, the coder found that it was impossible to amend the code, and it had to be recoded from scratch;
He had no time to do that, specially under time limit pressure, so we decided to free him from those, and give him all the time he needs to return to this later.

Of course that is the "official" EA, ordered by Sterling, and which development was followed by both of us;
At anytime, others may code an EA for this system (I know some have been working on it)
  • #2,750
  • Jan 22, 2009 7:35am Jan 22, 2009 7:35am
Quoting El Dee
Hi IKent,
Yes EA on this would be great - it would reduce my maintenance time from 5 mins / day to zero (and help to optimise of course!)
I'm trading it on Daily, recent results on post 2652, final position:
19/01/09 Sell 614 locked in, still open
Thanks so much for doc , I will try make EA to help You in Your hard work
Regards
Peter
  • #2,751
  • Jan 22, 2009 8:20am Jan 22, 2009 8:20am
Hello El Dee
Thanks a lot for posting daily document.Really appreciate your time and effort to help us.
Also thanks to tonirai,Howard and everyone else who are contributing in this thread to help others.
Regards
Bhupinder
  • #2,752
  • Jan 22, 2009 9:35am Jan 22, 2009 9:35am
Tonirai & Pitpiter;

I have coded an EA for the 4h5EMA strat., but it is not complete. I have not implemented the Friday rules and I still have one or two small bugs.

TimeFreedom

Quoting tonirai
About the latest coments about an EA, to the more recent visitors of this thread:

And EA has been coded, but because it followed the rules in the first post, which are confusing, it had some bugs;
After El Dee posted his rule's doc, the coder found that it was impossible to amend the code, and it had to be recoded from scratch;
He had no time to do that, specially under time limit pressure, so we decided to free him from those, and give him all the time he needs to return to this later.

Of course that is the "official" EA, ordered by Sterling, and which development was followed by both of us;
At anytime, others may code an EA for this system (I know some have been working on it)
Quoting pitpiter
Thanks so much for doc , I will try make EA to help You in Your hard work
Regards
Peter
  • #2,753
  • Jan 22, 2009 10:40am Jan 22, 2009 10:40am
Quoting TimeFreedom
Tonirai & Pitpiter;

I have coded an EA for the 4h5EMA strat., but it is not complete. I have not implemented the Friday rules and I still have one or two small bugs.

“There are only two tragedies in life: one is not getting what one wants, and the other is getting it.” - Oscar Wilde

TimeFreedom
I find there is a third tragedy in life. Coming to this
thread and finding my name as the only member listed
and no charts displayed with current trade analysis.

I'm still in a short (1.3865) even with this sudden reversal
keeping my stop above the high of two candles ago (8:00 GMT)
rather than adjusting it again to the most recent closed candle.

I would have been stopped out (and reversed) with this whipsaw.
We'll see how it plays out in this 4HR candle.

note: True to form, the 4HR often likes to retrace to the 5 SMA.



Dr. D.
Attached Image (click to enlarge)
Click to Enlarge Name: 1.3816.gif Size: 47 KB
  • #2,754
  • Jan 22, 2009 11:25am Jan 22, 2009 11:25am
Quoting fourxtrader
I find there is a third tragedy in life. Coming to this
thread and finding my name as the only member listed
and no charts displayed with current trade analysis.

I'm still in a short (1.3865) even with this sudden reversal
keeping my stop above the high of two candles ago (8:00 GMT)
[i][color=#0000ff]rather than adjusting it again to the most recent closed...
By keeping your stop at that level you are in effect trading the daily version.

The daily stop and reverse orders are sitting at 1.4035

Is this the same Dr D from good old auslanco thread?
Regards
  • #2,755
  • Jan 22, 2009 12:01pm Jan 22, 2009 12:01pm
Quoting howard
By keeping your stop at that level you are in effect trading the daily version.

The daily stop and reverse orders are sitting at 1.4035

Is this the same Dr D from good old auslanco thread?

Indeed.

Yes, still me... lurking in the shadows.
Ah, those were the good ole days.

I like what you and El Dee have done
with this. Much clearer. I'm still studying
the rules and as always, breaking some. lol.
I have spent more time with the GJ but
need to focus more on the majors.

By keeping my stops at the tops of higher
4H candles I avoid some of the unnecessary
whipsaw action. Though I'd like to find some
8H and 12H demo charts. Any ideas.

Thanks,

Dr. D.

  • #2,756
  • Jan 22, 2009 12:08pm Jan 22, 2009 12:08pm
Quoting fourxtrader
Indeed.

Yes, still me... lurking in the shadows.
Ah, those were the good ole days.

I like what you and El Dee have done
with this. Much clearer. I'm still studying
the rules and as always, breaking some. lol.
I have spent more time with the GJ but
[i][color=#0000ff]need...
At some stage I did try 12 hr, the outcome was not satisfactory, Kristo tried it as well and I believe he was not happy either.
Regards
  • #2,757
  • Jan 22, 2009 12:26pm Jan 22, 2009 12:26pm
Quoting howard
At some stage I did try 12 hr, the outcome was not satisfactory, Kristo tried it as well and I believe he was not happy either.

Perfect short set-up.

Try a 30 min chart. The reverse candle has
activated a sell stop at 1.3856. Up ~ 40 pips.

Sorry for breaking from the pattern.

Dr. D.
  • #2,758
  • Jan 22, 2009 2:41pm Jan 22, 2009 2:41pm
Hi!

I am very interested in this system and feel it work. But as I am not experienced trader it rather difficult to get right point. Please, help and comment my work.(EUR/USD H1 9:00-15:00 Latvia time) - H1 period only for training as not long result waiting as during H4

1. Set up bar (H - 1,3017; L - 1,2966) for long; Buy stop - 1,3025;
S/L - 1.2960
2. Reversal bar (H-1,3053; L-1,2993)
Reversal order: Sell stop -1,2986 (+ 5 pips) or 1,2960? (Sterling 4 Hr 5 EMA System 4.1 :When the reversal bar has closed,
a reverse stop order is now placed at the same level as the stop
loss (in my case 1,2986) with a contingent stop loss
at the opposite end of the reversal candle); How is correct?
S/L for reversal order - 1,3057
3. Bar 3 (H-1,3081; L-1,3038) profit:+ ~50 pips (according to the rules no
manual take profit and I did not - am I correct?). After bar 3 was closed -
reversal order Sell stop -1,3025 (+ 5 pips low & spred)
with a contingent stop loss at the opposite end - 1.3088

4. Bar 4 triggered Sell stop for the bar 3 - price was locked with
the result: - 3 pips. When the 4 bar has closed ,a reverse stop buy order is placed with the stop
loss according to the rules (bar 4 was not set up bar for long as it
touch both EMA - but I was trying to do some actions to get from
not profitable price lock to profit).
5, 6, 7, bars successive stop long set up bars. On the close of each bar
a long stop 0rdes were placed 5 pips and 5 pips S/L. The price remain
locked on the same
level(of couse!) :-3 pips.
I have stoped manually : -3 pips. Of couse this result is olso not bad - no loss!
Where I was wrong? Is it regular result for this situations (price goes to opposite direction instead of "ideal trade" when reversal bar was followed by succession of set up bars in profitable direction)?
Sorry to trouble but without help I can not get the sence.

Regards
Attached Image (click to enlarge)
Click to Enlarge Name: Pic.jpg Size: 264 KB
  • #2,759
  • Jan 22, 2009 3:57pm Jan 22, 2009 3:57pm
@ ViktorDoktor;

Bar 6 is not a setup bar because it doesn't make a lower low (LL). Everything else looks good.

TimeFreedom

Quoting viktordoktor
Hi!

I am very interested in this system and feel it work. But as I am not experienced trader it rather difficult to get right point. Please, help and comment my work.(EUR/USD H1...
  • #2,760
  • Jan 22, 2009 4:00pm Jan 22, 2009 4:00pm
I am not sure I understand what your saying in this part of your message, but you shouldn't have been stopped -3 pips. It looks like you would have been stopped in positive pips after the 7th bar.

TimeFreedom

Quoting viktordoktor
I have stoped manually : -3 pips. Of couse this result is olso not bad - no loss!
Where I was wrong? Is it regular result for this situations (price goes to opposite direction instead of "ideal trade" when reversal bar was followed by succession of set up bars in profitable direction)?
Sorry to trouble but without help I can not get the sence.

Regards
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