Eagle Method MA Crossover System

It can be used on the Eur/JPY

The channel levels are +-100

Hi str8deals thanks for you fantastic suggestion..

I have implemented it and am using it.. It has been working on the 30 min as well for the GBP/JPY...

What i am doing now is

1. ENTER ON CROSS
2. CHECK RVI if it's past zero then it will be a nice move and i can let it run.. If it isn't past ZERO then i watch the trade carefully
3. I wait for the price to hit the outer channel (125) then I move to the 5 min TF.. If it retraces by 30 pips i exit the trade.. If it passes the channel i then...
4. Hold the position and implement a 50 pip trailing stop..

Hi all,

I'm a total novice at this game but this system seems so simple I am tempted to try it but there are things I don't understand. I'm using a free chart setup I found on the net that offers the standard indicators but in the opening entry on this thread TBWSS says the indicators are 9SMA on close and 100SMA on close. Can somebody explain the 'on close' bit to me please ? Apologies in advance if this seems a really stupid question.

Cheers

Hi,
When you want to draw an MA on the chart, you have to chose the period, the "MA method" (Exponential, simple etc) and the "Apply to" tab.

In our case, you have to chose "Apply to: close".

Hope this helps

Hi,

Thanks for that. I've just checked my setup and under the moving averages title it allows me to choose whichever one I want and then places it on the chart so I'm not sure whether the effect is exactly the same as you describe but thanks a lot anyhow.

Cheers

Have you noticed how a bounce off of the 100 sma can also be a great entry point or scalping method.

Any thoughts.

Billser

Today I got whipsawed on the entrance on the 1h cross it was a bad day for gbp jpy and a great day for gbp usd. Man, gbp usd doesnt move much lately, but when it does...I think gbpjpy got stuck between gbp usd goin up and usd jpy going down, so this may be the cause for the shitty ugly spikes.

It seems however that the entrance on the cross on 30 min chart would have worked much better. Next time ill do it.

Where can i get the EAs?

I was backtesting this using the straight cross of the 9 over the 100 and in trying to figure an exit method that would not lose as many pips as simply waiting for a re-cross, and therefore a reversal, I applied fractals and used them as a trailing stop. It was pretty successful. I also found that not applying a stop initially was the best method to get the trade going, however, I could not trade this way live. So I would have to figure some emergency stop loss number to apply initailly in the trade.

Try just adding a 21 ema and taking the cross for the exit. A shorter EMA might work better but the 21 is pretty good.

here is a idea for a better exit. It will vary a little from broker to broker but should be close enough.

Draw trend lines as the run is moving keep updating the trend lines. when price breaks or closes (closes) the trend line exit the trade. It could also give you a heads up on the next entry. but I would move stop to be on the trendline break as soon as possible. there is some discretion to it.

do some backtesting this weekend while moving one cadle at a time.

Mouteki method has some great lessons on drawing trend lines.

Its as simple as this method and seeems to work well with it for exits.

Youll never get every pip, just like youll always have loosing trades.

here is the recent chart with a few lines on it. You can see how it would get you out long before a cross happens. Most of the time you have a trendline in place before the cross that gets you into a trade. this could also help with, getting out early on whips?

Needs some backtest but I think you can see it can work and it simple.

I got into the gbp/jpy yesterday afternoon...1 minute I was up 28 pips with a 50 pip stop loss...then I saw it going down on some news so I got rid of the stop loss and let it ride down.

It went down 120 pips then hovered around the 50 pip in the minus for me...then this morning it was all over the place and I got out with 9 pip profit (real money) just before the close of the day....I didn't want to be in over the weekend and see a big spike to the down side on the open on sunday.

But great system.....I think I will be able to make some money out of this one.

Have a great weekend.

Billser

Good for you Billser for getting out of that one positive. Backtesting this shows it will hurt bad during a ranging market, as we all know ma cross systems do. It will reward nicely though in a trend, again this is not news to most of us. I don't think this is any better or any worse than other ma crossover systems. Money management will save you with it. If you can weather the range periods then you should make money in capturing the trends.

What I noticed today was on certain time frames it would keep bouncing off of the 100 sma. When I learn the mood of the pair I will also learn to trade this price action to take a 10 - 20 pip scalp off the 100 sma.

Happy weekend and Happy Pippin'

Entry strategy looks very solid but, I have a strong feeling that you will need to implement some type of stop loss with this strategy as a security net. You can never monitor the market 24 hours a day, and you never know when the markets jumps out and goes against you. Other than that, the strategy looks very good.

Well Ive bee trying to nail down the exit strat by using trendlines and I found that I would end up exiting early most of the time. perhaps I just need more practice with trendlines. There is a indicator out there that will draw the latest trendlines for you. Demark_trend_alert_and_mail it will alert you when price crosses the lines. Im not on my home ccomputor or I would atach it.

I also added a 05 and -.05 level to the RVI set to 100 period, and found that once the RVI is past those levels and crosses back that is a good time to exit the trade. I would like some of you to test this also and see what you think of it for a exit strat.The 125 channels work great and if price has been outside of them and comes back in it is at least a warning that things are cooling down, but the RVI tells even more. I had never used the RVI before but like it much better then other oscillators.

I also tried a old idea that I was thaught by Rob Booker. We all know the trend is our friend but determining the trend is what we struggle with. Rob used the 62 to tell him the trend in his 5/13/62 method. The Idea is to use a higher ma, which is in turn using a higher time frame to show the trend.

I decided to try putting a 200 ma on the chart and which ever side of the 200 the 100 is on thats the safest direction to trade. So if the 100 is below the 200 you take short trades. this will keep you out of most of the whips. Even when the 100 is flat if the 200 is coming down you sill would look for short trades. when both 200 and 100 are flat and close to eacch other its time to be careful or look for another pair to trade. Im also checking it with the 144sma but so far like the 200 best.

I also added a P-sar and noticed that when the dots change your safe to get out and when it goes back in your diretion your safe to get back in, as long as the 9 has not crossed the 100. However it will change back and forthe several times in a good run.

BTW this seems to work on all TFs also. Remembe it will work on other pairs so it things flatten out try check another pair for a while. Hope this helps.

I would like a indicator to tell me the distance between two MAs and if they are moving closer or farther apart. Is there anything like that out there?

Thanks tbwss1234 I really like this system!

what setting do you suggest for PSAR on 30m and 1h timeframe?

http://www.forexfactory.com/attachme...1&d=1174957078
This is your 1st chart in this thread

You say close & reverse when the 9 & 100 cross the 2nd time on the chart
But Why would you reverse here?
I understand why you stoped here
But don't your rules say to wait untill
the RVI climbs over the 50% to get back in ?
Thanks

TEB,

he already mentioned in 1st post and the posts attached below that RVI is optional for him.

Thanks
I didn't see where he say that
but I am sure you are right

I see you added the posting in after thanks!