Great GBP/USD Strategy for Swing Trades

If anyone is still in this from the last cross, congrats! You are up over 300 pips. I just wish I had the stomach to stay in that long I had to bail at +120

I have been reading the thread with interest and I am not sure if anyone has already suggested this or not but its easier to place a MTF stoch set at 1440 on the 4hr chart so you can see the daily stoch without flipping backward/forward all the time. Just makes life a little easier. You can still have the 4hr stoch on the chart as well
Richo

It looks as though the USD/JPY is stting up for a short. We have the STO down on daily and just waiting for the 13 to cross the 50, which should happen after the current 4 H bar closes.

Eben

Hi

Anyone going to short USD/JPY...EMA 13 is going to close 50SMA real soon...

Since i have not backtested this pair i will only short it on micro account. The originator only trade this on GBP/USD so i think we should be careful of other pairs at first

Eben

...had my eye on U/J too, my chart's last 4hr period closed out at 12pm (UK time) without a 13/50 cross, very close though. Will check again just before 16:00.

My 4Hour closed with cross and i went short. Up 20 pips now

Eben

...stopped in short now at 118.23

thanks for the system!

...stopped out for -50. Next.

Hi Chowclown

Did you input 50ema instead of 50sma???
I made that mistake earlier (thinking that 13ema is only going to cross 50sma)earlier till I saw the post of Ebenst at 5.08pm (GMT+0)....

My entry was 4hrs late but manage to get out +50pips .

I'm using the 50ema, as per VyNNers rules in post 1. The different data feeds people are using accounts for different ema crosses.

Nicely done on the +50.

...a quick (untested) observation on the daily chart trendline.

The closer the pending 4hr set up is to breaking a 45(ish) degree trendline on the daily, seems to deliver better trades. Akin to VyNNeR's comments on the angle of the 4hr ema slopes. Just tried uploading a chart, but keeps failing.

I think this may be one of those months where you only get one or two trades the whole month on the Pound according to the original rules. Oh well. Keeps you disciplined anyway!

is this a valid short or long? please look at current chart. ema4 has just cross ema50.

...ideally we're looking for the 13 to cross the 50 too, to set up a short.

i assume you're looking at the 4hr GBP/USD chart...
no this is not a valid short or long signal. the 4/13EMA's have crossed which would be a valid exit signal if you were in long.

these two EMA's need to cross the 50EMA and the daily stoch has to be showing short/long depending on the direction of the cross for a valid entry signal... take a re-read of the rules in post #1 to clarify, but this is my understanding.

all the best

not GU.i'm backtesting it with EUR/JPY. what i seen on 4hr chart is that ema4 is crossing ema50 already, and ema13 is looking to cross as well maybe in 2-3 next candles.if this happen,is it a long or short signal?

Short.

I just read this entire thread. Nice 350 pip move on the pound if you took it and followed the rules. You should be exiting right about now after 8 days of pip fun.

There's been no discussion of position sizing and money management. How much are you guys risking per trade on a 50 pip stop loss? 2% of equity? 5%? This is important. If you're risking 5% (quite a bit), a $5,000 account should risk no more than $250. At $5/pip, the correct position size would be 5 mini-lots. I hope you guys are not going full out on the leverage. I'd like to hear from VyNNer on this.

Great system.