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4H 5EMA System

  • #3,021
  • Feb 6, 2009 9:16am Feb 6, 2009 9:16am
I am taking a huge hit so far this month...well over -500 pips...is any else feeling my pain???
  • #3,022
  • Feb 6, 2009 9:32am Feb 6, 2009 9:32am
Hi Chris,
Largest loss that I've taken : -419
Largest SL placed ever: 745
Average SL size (Dec/Jan/Feb): 280
  • #3,023
  • Feb 6, 2009 9:36am Feb 6, 2009 9:36am
Quoting earret
I am taking a huge hit so far this month...well over -500 pips...is any else feeling my pain???
Don't worry buddy.
We are with you as well

On the daily version, Feb has had two losing trades. If the current day's candle maintains its low, then I'd be locking in some pips for the first time this month .

Yes, Feb so far, has been tough .

But, hang in there, its only the first week.
  • #3,024
  • Feb 6, 2009 10:53am Feb 6, 2009 10:53am
Hi, EL Dee, Howard and Denverdude, am aware that you guys are trading the daily system.

I would like to ask for advice regarding the money management for trading the daily system. How many lots is appropriate to trade for a 1000usd account?

The average sl would be around 280 pips accoring to denverdude right? and the maximum drawdow would be -419 pips... right?

Thanks for the feedback guys

- Sean
Discipline is PRIMARY, Method is Secondary.....
  • #3,025
  • Feb 6, 2009 11:24am Feb 6, 2009 11:24am
Calculating lot size is very simple. You know what your stoploss is and you know % of your account you r willing to lose on any trade. So do the math. The lot size will change with every trade just about. What I do is, I made a spreadsheet that has my account balance in it. I plug my stoploss in and it tells me the lot size to trade. Easy as that
  • #3,026
  • Feb 6, 2009 11:37am Feb 6, 2009 11:37am
Quoting Dabestone
Hi, EL Dee, Howard and Denverdude, am aware that you guys are trading the daily system.

I would like to ask for advice regarding the money management for trading the daily system. How many lots is appropriate to trade for a 1000usd account?

The average sl would be around 280 pips accoring to denverdude right? and the maximum drawdow would be -419 pips... right?

Thanks for the feedback guys

- Sean
Sean,
I don't know what % of your account you are willing to risk on each trade. The last two trades in Feb were both losses and came to around 500 pips.

If you were to trade a mini with only $1000, your account would be down 50% with those two trades.

If you are comfortable with that kind of loss, then you can trade mini. Otherwise, start with micro.

Also, I've seen SL in the 300/400/500 ranges often, though when the SL is moved at end of day the next day, the SL size reduces. What I'm trying to say is that the potential for losses of 400/500 pips exists with the daily system.

So, you have to plan accordingly.

If I were you, I'd only trade micro with $1000 ac - but I'm very conservative and keep my risk to around 2 - 3% of my ac balance.

Hope this helps.
  • #3,027
  • Feb 7, 2009 7:31am Feb 7, 2009 7:31am
Here are my trades for February using the 4H 5EMA system. If someone can look over them and make sure I'm doing it right, please go ahead. The week started great but then started to get stopped and reversed towards the end when GBP made it's continued up move. Still up +136 pips on the month though and currently long.

Here's the trades:

S1:
Beginning of the month. Illustrated the wrong setup bar here as it failed to reach a higher high than the previous. Anyhow I traded it right.
Enter Short @ 1.4443

L2:
Long setup bar formed and went long when reversal bar exceeded it's high.
Exit short and went Long @ 1.4229
+214 pips

S3:
Short setup bar formed and went short when reversal bar exceeded it's low.
Exit long and went Short @ 1.4414
+185 pips

L4:
Long setup bar failed to form and was stopped out and reversed from previous setup bar shown.
Exit short and went Long @ 1.4490
-76 pips

S5:
Short setup bar formed and went short when reversal bar exceeded it's low.
Exit long and went Short @ 1.4612
+122 pips

L6:
Long setup bar failed to form and was stopped out and reversed from previous setup bar shown.
Exit short and went Long @ 1.4709
-97 pips

S7:
Short setup bar formed and went short when reversal bar exceeded it's low.
Exit long and went Short @ 1.4636
-73 pips

L8:
Long setup bar failed to form and was stopped out and reversed from previous setup bar shown.
Exit short and went Long @ 1.4775
-139 pips

http://www.forexfactory.com/attachme...7&d=1234013364
  • #3,028
  • Feb 8, 2009 1:13pm Feb 8, 2009 1:13pm
Quoting pmn100
Here are my trades for February using the 4H 5EMA system. If someone can look over them and make sure I'm doing it right, please go ahead. The week started great but then started to get stopped and reversed towards the end when GBP made it's continued up move. Still up +136 pips on the month though and currently long.

Here's the trades:

S1:
Beginning of the month. Illustrated the wrong setup bar here as it failed to reach a higher high than the previous. Anyhow I traded it right.
Enter Short @ 1.4443...

Looks like you're using another set of charts such as IBFX other than Alpari.


I've been testing both IBFX and Alpari and see some obvious differences
since the 4H candles start at differing hours. (see post #3008 - red are
additions as the trades continued through the week)


I have similar result as you on the IBFX platform.
Short at beginning of the week:
Buy +199
Sell +179
Buy -81
Sell +116
Buy -112
Sell -76
Buy -156


It's tough to give back 300+ pips in the last 3 trades.


My Alpari chart gave me the following:


Short at the beginning of the week:


Buy +168
Sell +117
Buy -122
Sell -66
Buy -160
Sell +15
Buy -112
Sell -98
Buy -162
Sell +8 (at 5 min before chart closed)


This completes one week of comparison between
two platforms which use different hours start time
for the 4H TF



IBFX

(~4H timeframe of when the trade opened / or closed)


(opened first trade off of the short-setup candle when platform opened)



sell-stop @ 1.4430 2/01 20:00 closed @ 1.4231 + 199 pips


buy-stop @ 1.4231 2/02 16:00 closed @ 1.4410 + 179 pips

sell-stop @ 1.4410 2/04 12:00 closed @ 1.4491 - 81 pips

buy-stop @ 1.4491 closed @ 1.4607 + 116 pips

sell-stop @ 1.4607 closed @ 1.4709 – 112 pips

buy-stop @ 1.4709 closed @ 1.4633 – 76 pips

sell-stop @ 1.4633 closed @ 1.4789 - 156 pips

(closed final trade 5 min before close of IBFX platform)


TOTAL + 69 pips (at one point the weekly trade was up ~+ 486 pips)



ALPARI (~4H timeframe of when the trade opened / or closed)


(opened first trade off of the short-setup candle when platform opened)

sell-stop @ 1.4420 2/02 00:00 closed @ 1.4252 + 168 pips


buy-stop @ 1.4252 2/02 16:00 closed @ 1.4369 + 117 pips

sell-stop @ 1.4369 2/04 00:00 closed @ 1.4491 - 122 pips

buy-stop @ 1.4491 2/04 16:00 closed @ 1.4425 - 66 pips

sell-stop @ 1.4425 2/04 20:00 closed @ 1.4585 - 160 pips

buy-stop @ 1.4585 closed @ 1.4600 + 15 pips


sell-stop @ 1.4600 closed @ 1.4712 - 112 pips

buy-stop @ 1.4712 closed @ 1.4614 - 98 pips

sell-stop @ 1.4614 closed @ 1.4776 - 162 pips

buy-stop @ 1.4776 closed @1.4784 + 8 pips

(closed final trade 5 min before Alpari platform closed)


TOTAL – 412 pips (at one point the weekly trade was up ~+ 285 pips)


Of course, I suspect I have made some errors... and hope someone

will correct me who is trading Alpari and show me that this is not the


case and that it showed hundreds of pips more in the gain. I would like


to see some 'tweaks' in the system that might preserve some of the

gains when they do occur or rather reduce some of the losses and stop

the bleeding of pips. Three consecutive trades lost 372 pips in Alpari
and 342 with IBFX.



Dr. D.
  • #3,029
  • Feb 9, 2009 3:53am Feb 9, 2009 3:53am
Quoting fourxtrader

Looks like you're using another set of charts such as IBFX other than Alpari.


[left]I've been testing both IBFX and Alpari and see some obvious differences
since the 4H candles start at differing hours. (see post #3008 - red are
[i][font=Verdana][size=2][color=#ff0000]additions...
Dr D excellent analyses and I make Alpari about the same for Feb - as Sterling says you get gains/losses with some platforms and not others but overall it tends to balance out over time apparently. However this is one hell of a difference and I have always advocated taking profit when its on the table for the month.
  • #3,030
  • Feb 9, 2009 5:34am Feb 9, 2009 5:34am
Quoting fourxtrader

preserve some of the


[left]gains when they do occur or rather reduce some of the losses and stop

the bleeding of pips. Three consecutive trades lost 372 pips in Alpari
[left][i][b][size=2][font=Verdana][color=#0000ff]and...
Dr D

Back in December I had posted a simple version of the daily with provision for targets, that was explained in post #2476; maybe you would like to test it on 4 hourly to see how it goes, I have not done any work on it.
Regards
  • #3,031
  • Feb 9, 2009 7:45am Feb 9, 2009 7:45am
Howard,

I would imagine your Daily system would be faring quite well over the past week or so?
If there is ever any doubt then there is no doubt.
  • #3,032
  • Feb 9, 2009 10:44am Feb 9, 2009 10:44am
Quoting howard
Dr D

Back in December I had posted a simple version of the daily with provision for targets, that was explained in post #2476; maybe you would like to test it on 4 hourly to see how it goes, I have not done any work on it.
Thanks Howard,

Profits are a precious commodity in the forex and
careless MM and uncontrolled losses are a curse.

Here's what you wrote in post #2476....


The rules I am following:

Towards the end of the daily bar I place two pending orders:

1-Buy order 10 pips above the high of the bar, stop loss 5 pips below the low of the bar, target the same amount as the stop loss

2-Sell order 5 pips below the low of the bar, stop loss 10 pips above the high, target the same amount as the stop loss.

When one of the above orders is triggered I do not cancel the other one but keep it as the reverse order in case the first one is stopped out.

When target is hit I cancel the other order.

Reverse position takes place only once as above mentioned.

If I am in a trade at the end of each bar I move the stop to the low or high of the new bar as appropriate (5 pips below, 10 pips above).

By doing the above I am in effect treating each daily bar as a setup bar.

When target is hit I repeat the process again.

When I say towards the end of the daily bar I mean it does not have to be the exact close as long as the high and low of the bar have been established, I normally place the orders between 9 and 10 pm GMT.
  • #3,033
  • Feb 10, 2009 2:27pm Feb 10, 2009 2:27pm
I'm still in a sell which was triggered off of the long
set-up candle that bottomed at 1.4851 ~ 24 hrs ago.

Sell @ 1.4846
still running @ ~1.4467

that's nearly 400 pips.

Dr. D.
  • #3,034
  • Feb 10, 2009 3:03pm Feb 10, 2009 3:03pm
We need chao back in the market so that the system wakes up again. The system has been taken a lot of beaten.
  • #3,035
  • Feb 10, 2009 4:23pm Feb 10, 2009 4:23pm
Hi Dr D,

I think the thread is fine, just a bit quieter than usual at the moment. I am also short from 1.4846 and have applied the 150 pip rule. The current bar (on Alpari) should close in about 20mins and it looks like it will be a new Long setup bar.
If there is ever any doubt then there is no doubt.
  • #3,036
  • Feb 10, 2009 6:40pm Feb 10, 2009 6:40pm
Quoting Kristo
(...)
I am also short from 1.4846 and have applied the 150 pip rule.
(...)
Kristo,
I suppose you did that to protect the profit, as the bar was so long? (I'm asking because it was a setup bar anyway, so by the rules, we had a place to put the SL).


Guys,
I was away all weekend. But anyway, I will be less around, at least for some time, from now on;

I have a lot going on in my life right now, and not for the best reasons.
As some of you already know, the company I work for is facing an insolvency process, and is about to be bankrupt, if a solution isn't found until the end of March.

So I won't be trading this system, because I can't depend on the clock... only some short term trades, if and when I get the time and focus to.

For the same reasons, I won't be following the thread so much - I think I can still read all new posts at least once a day, but posting much less myself.

There's more than sufficient people around who know the rules, if any doubt arises - and hopefully, I won't be gone too long
  • #3,037
  • Feb 10, 2009 7:42pm Feb 10, 2009 7:42pm
Quoting tonirai
Kristo,
I suppose you did that to protect the profit, as the bar was so long? (I'm asking because it was a setup bar anyway, so by the rules, we had a place to put the SL).


Guys,
I was away all weekend. But anyway, I will be less around, at least for some time, from now on;

I have a lot going on in my life right now, and not for the best reasons.
As some of you already know, the company I work for is facing an insolvency process, and is about to be bankrupt, if a solution isn't found until the end of March.

So I won't be trading...
Tonirai,

I wish you the best of luck. Thank you for all of your contibutions. Hopefully everything will work out for you.


Can anyone please confirm the current status on the Daily method?
  • #3,038
  • Feb 10, 2009 9:29pm Feb 10, 2009 9:29pm
Quoting tonirai
Kristo,
I suppose you did that to protect the profit, as the bar was so long? (I'm asking because it was a setup bar anyway, so by the rules, we had a place to put the SL).


Guys,
I was away all weekend. But anyway, I will be less around, at least for some time, from now on;

I have a lot going on in my life right now, and not for the best reasons.
As some of you already know, the company I work for is facing an insolvency process, and is about to be bankrupt, if a solution isn't found until the end of March.

So I won't be trading...

Yes, thats right Tonirai. By the time I had posted, the recent big bearish bar had already closed at 1.4495 and the following bar which opened at 20.00 (Alpari time) was about 20 mins away from closing also, so I locked in partial profits. When the 20.00 bar closed and was confirmed as a Long Setup bar, I then shifted my Buy stop down to 1.4552 as per the rules. I am in Australia, so it was early morning for me here when I undertook the above.

On a different note, best wishes for your future mate.
If there is ever any doubt then there is no doubt.
  • #3,039
  • Feb 10, 2009 11:13pm Feb 10, 2009 11:13pm
Hey Toni,

Hope that your life situation will sort out well. All the best to you and thanks for all the contributions you have made to the thread.

- Sean
Discipline is PRIMARY, Method is Secondary.....
  • #3,040
  • Feb 11, 2009 4:57am Feb 11, 2009 4:57am
Quoting acosta2269
Tonirai,

I wish you the best of luck. Thank you for all of your contibutions. Hopefully everything will work out for you.


Can anyone please confirm the current status on the Daily method?
Daily is short from 1.4697
Regards
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