4H 5EMA System | Page 153 | 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

  • #3,041
  • Feb 11, 2009 8:16am Feb 11, 2009 8:16am
Quoting howard
Daily is short from 1.4697
Howard,

Thanks for confirming that for me. It looks like a setup bar to go long is forming.

Anthony
  • #3,042
  • Feb 12, 2009 11:51am Feb 12, 2009 11:51am
Quoting howard
Daily is short from 1.4697
Hi howard, I suppose you are trading the same way El Dee trades the daily method? Which applies the 3 tweaks rules..

Besides that, you are using daily candles which opens at 23:00 GMT am I right?

Thanks Howard, keep up the good work.

- Sean
Discipline is PRIMARY, Method is Secondary.....
  • #3,043
  • Feb 12, 2009 12:35pm Feb 12, 2009 12:35pm
Quoting Dabestone
Hi howard, I suppose you are trading the same way El Dee trades the daily method? Which applies the 3 tweaks rules..

Besides that, you are using daily candles which opens at 23:00 GMT am I right?

Thanks Howard, keep up the good work.

- Sean
Yes you are right
Regards
  • #3,044
  • Feb 13, 2009 3:58am Feb 13, 2009 3:58am
I'm following El Dee's rules for the daily and what I have (alpari us) is a short that closed earlier today at 1.4423 for about 272 pips. We are now long from 1.4423 on a reversal order with a SL of 1.4125.
  • #3,045
  • Feb 13, 2009 5:42am Feb 13, 2009 5:42am
Quoting PowerBySol
I'm following El Dee's rules for the daily and what I have (alpari us) is a short that closed earlier today at 1.4423 for about 272 pips. We are now long from 1.4423 on a reversal order with a SL of 1.4125.
Hi , I have the same on my chart , just SL is 1.413 , if You reread rules , You find


2.2 At the close of a setup bar for a long order

  1. A buy stop order is placed 10 pips above the highest level of the setup bar
  2. A contingent stop loss is placed 5 pips below the lowest level of the setup bar (that is, a stop loss that will be activated only if the buy stop order is activated)

Good luck
Peter

  • #3,046
  • Feb 13, 2009 10:14am Feb 13, 2009 10:14am
@ Tonirai;

Hope all turns out positive for you. All your hard work and contributions have been greatly appreciated.

TimeFreedom

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...
  • #3,047
  • Feb 15, 2009 6:36am Feb 15, 2009 6:36am
Quoting fourxtrader
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.
Hi,
these rules seems very interesting

"Target the same amount as the stoploss" - does target means take profit?

Regards
  • #3,048
  • Feb 15, 2009 7:02am Feb 15, 2009 7:02am
Quoting howard
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.

Trades taken since start of the test are as follows:

1-28 Nov short +220
2-02 Dec short +270
3-08 Dec long +263
4-11 Dec long +158
5-12 Dec long +324

6-17 Dec long open
Howard!

"Target the same amount as the stoploss"
"Target" can not mean take profit. What mean "target " in that case?
Sorry for this may be full question - I am not expeareanced trader.

Thanks
  • #3,049
  • Feb 15, 2009 1:15pm Feb 15, 2009 1:15pm
Quoting viktordoktor
Howard!

"Target the same amount as the stoploss"
"Target" can not mean take profit. What mean "target " in that case?
Sorry for this may be full question - I am not expeareanced trader.

Thanks
Target means take profit
Regards
  • #3,050
  • Feb 15, 2009 3:17pm Feb 15, 2009 3:17pm
Quoting howard
Target means take profit
Hi!

Sample chart- last candle high 1.46055, low-1.42520
I should put sell stop:
price- 1.42470
Stop loss- 1.46155
Take profit-1.46155?

and buy stop:
price - 1.46155
Stop loss - 1.42470
Take profit - 1.42470?

Take profit - the same as stop loss.
Is it right?
Attached Image (click to enlarge)
Click to Enlarge Name: simple version.gif Size: 14 KB
  • #3,051
  • Feb 15, 2009 3:44pm Feb 15, 2009 3:44pm
Hello all, I am doing some backtesting on this system and have a question about the rules.

I have gone through the forum but was not able to find an answer to this question.

I have a buy trade that was triggered by a reversal bar, two more reversal bars followed and I adjusted the reversal order accordingly and adjusted the stop loss on my open trade.

My question is, after the reversal bar triggered the trade I had two more proper reversal bars. After those bars I had a bar with a higher low but lower high, so would I adjust my trade? This was a failed reversal bar, the next bar is a doji. So that is two bars since a proper reversal bar, would I apply the rule of only taking a trade that is within two bars of the signal bar (since the reversal bar is now the signal bar).

My concern is since I'm in profit on the trade and I'm setting up the reversal orders so that when the market turns around I can try and catch the move as well as keep profit, if I apply the "within" two candles rule then I would not have a reversal trade in the market just a Stop on my buy order WAY in the negative.

What I THINK I should do is, keep the open order based on the most recent reversal bar unless I get another proper reversal bar in the same directions, in this case a buy.

Please give input, if I need to make it more clear please ask.
Attached Image
  • #3,052
  • Feb 15, 2009 5:00pm Feb 15, 2009 5:00pm
I would not consider myself an expert, but I have been following this system from the start. As I understand the rules, since there have been two bars that did not make higher highs your stop would still be 5 below the bar to make the highest high, locking in good profit. Per the '2 failed' rule, you would ignore all previous bars after the close of the third bar and treat the third bar since the high as your new setup bar if it goes at least 5 pips into the upper EMA. Since you are in a trade you would stay in the trade and move your stop and revers order to 5 pips below the new setup bar, the third bar out from the highest high, if it meets the criteria for a setup bar. If the third bar out does not better the EMA by 5 pips you remove your reversal order (since we are waiting for a setup bar) and leave the stop for your current order 5 under the previous bar that made the last highest high. I take this understanding from El Dee's writeup, example 5.4.

This may be a simple system, but it can through curve balls quite well ;-}
  • #3,053
  • Edited 5:47pm Feb 15, 2009 5:14pm | Edited 5:47pm
I have a question on the daily version. Friday we had a reversal triggered at 1.4423. Stop for that order was 1.4130. Friday closed with the price lower than the trigger but not as low as the stop. I did not move my stop before the market closed because on the daily we do not close over the weekend and my old broker would open at 2 PST on Sunday and have a short candle which I count as part of Friday. My new broker started trading at 3 PST and the opening price was a big gap down to 1.4220, way below the close on Friday of 1.4353.

I'm guessing I should have moved my stop before market close on Friday, would that be the way you trade the daily El Dee, or anyone following the daily? If I did move my stop before the close on Friday I think I would have also placed a reversal order since I would call Fridays bar closed. This means I should now close the current long trade and go short, but I hesitate because I'm now outside of what the rules state and I wonder what the price action will do. It is always said that a gap will close so I hesitate to close the long now before it does close - IF it closes...

It's a good idea to take emotion out of your trading ;-}
  • #3,054
  • Feb 15, 2009 6:00pm Feb 15, 2009 6:00pm
Quoting viktordoktor

Take profit - the same as stop loss.
Is it right?
I believe he means the same number of pips as the stop, but in the opposite direction Victor.
  • #3,055
  • Feb 15, 2009 8:28pm Feb 15, 2009 8:28pm
Quoting PowerBySol
I believe he means the same number of pips as the stop, but in the opposite direction Victor.
Thank you! The same idea I have.Even Metatrader do not allow to put such order as I have mentioned in my post above(equal stoploss and take profit).

Regards
  • #3,056
  • Feb 16, 2009 1:34am Feb 16, 2009 1:34am
Quoting howard
Target means take profit
Hi! I understand it in such way

Sample chart- last candle high 1.46055, low-1.42520, price - 1,43535

I should put sell stop:
price- 1.42470
Stop loss- 1.46155
Take profit(target)-1.38785

and buy stop:
price - 1.46155
Stop loss - 1.42470
Take profit - 1.49840

Take profit - the current price and stop loss difference in pips amount.
Is it right?

Regards
Attached Image (click to enlarge)
Click to Enlarge Name: simple version.gif Size: 14 KB
  • #3,057
  • Feb 16, 2009 4:19am Feb 16, 2009 4:19am
Quoting Kush
Hello all, I am doing some backtesting on this system and have a question about the rules.

I have gone through the forum but was not able to find an answer to this question.

I have a buy trade that was triggered by a reversal bar, two more reversal bars followed and I adjusted the reversal order accordingly and adjusted the stop loss on my open trade.

My question is, after the reversal bar triggered the trade I had two more proper reversal bars. After those bars I had a bar with a higher low but lower high, so would I adjust my trade? This...
After two failed reversal bars, on 4 hourly you wait for a new setup bar and apply the 50% rule for your stop loss; on daily you exit the trade on close of the 2nd failed reversal and apply tweak #1 for entry.
Regards
  • #3,058
  • Feb 16, 2009 4:23am Feb 16, 2009 4:23am
Quoting PowerBySol
I have a question on the daily version. Friday we had a reversal triggered at 1.4423. Stop for that order was 1.4130. Friday closed with the price lower than the trigger but not as low as the stop. I did not move my stop before the market closed because on the daily we do not close over the weekend and my old broker would open at 2 PST on Sunday and have a short candle which I count as part of Friday. My new broker started trading at 3 PST and the opening price was a big gap down to 1.4220, way below the close on Friday of 1.4353.

I'm guessing...
we did not have a setup bar for short, position is still long with stop still at 1.4130
Regards
  • #3,059
  • Feb 16, 2009 4:27am Feb 16, 2009 4:27am
Quoting viktordoktor
Hi! I understand it in such way

Sample chart- last candle high 1.46055, low-1.42520, price - 1,43535

I should put sell stop:
price- 1.42470
Stop loss- 1.46155
Take profit(target)-1.38785

and buy stop:
price - 1.46155
Stop loss - 1.42470
Take profit - 1.49840

Take profit - the current price and stop loss difference in pips amount.
Is it right?

Regards
Yes it is right in your sample.
Regards
  • #3,060
  • Feb 16, 2009 5:30am Feb 16, 2009 5:30am
Quoting howard
Yes it is right in your sample.
Thanks HowardI will try it both - daily and 4HRegards
5 traders viewing now