my new discretionary trading system

i expect to get a lot of criticism on this system because it is very simple.


i made 100 pips on it yesterday buying the euro on the 15 min chart

and i made a 30 pips loss selling gbp jpy today, and a 140 pips profit buying gbp usd today.


on both these trades i should have held on according to my rules, but i wanted to take the profit.


the system conditions for entry:

change from candlestick charts to CLOSE line chart

plot the 30 ema on the 15 min chart

the 30 ema must be sloping upwards (recently, because you dont want to enter too late)

price must be above the 30 ema

price must be going higher and forming support on the 30 ema at higher prices since the 30 ema is sloping upwards.

price must be making higher highs and higher lows.



when all the above conditions are satisfied enter when price comes back to the 30 ema. make sure you dont enter too late. the ema must be sloping upwards very recently.


exit

when price breaks through the moving average strongly, the ema turns around and price starts forming resistance at the ema.

you should exit in the first instance when price strongly breaks the 30 ema. (not when its forming support on the 30 ema)



profit potential

empirical evidence suggests the moves can last for days & days...


my contact: [email protected]

So just to make sure I have this right, price and ema must be moving in the same direction. ema should be providing support. Then just enter when close price touches ema?

By the way, any system that makes money is a good system. Doesn't have to be complicated.

yes, exactly. i recommend using closing line price instead of candlesticks though, because you will see price forming support either just above the 30 ema or straddling the 30 ema. For me, the highs and the lows are a distraction.

When price cannot penetrate throught the 30 ema and is continously going higher with the 30 ema i see that as bullish and place my buy order when price is at the moving average (not when prce has rallied way above the moving average)

though I try to be early and I do not enter if price already made 150 pips or so no matter how well it is trending.


since this is a discretionary system, by early it could mean ema has turned from sideways to upward sloping and is continuing going up. when this happens i enter, rather than wait for price to go further and further up.

Hi Pipharvestr,

Your system is on 15 min chart. Do you need to refer to H4 or H1 for actual trend, before entering trade?

no, i do not refer to any higher timeframe for trend.




i use the 15 min timeframe because it suits my trading personality in terms of the distance of my stops and follow through of price