5 Point System (for trending markets)

5 Point Strategy for Trending markets

Indicators Used:

0. Time Frame -
----- 15 minute.

1. Moving Averages - (As in Template)
----- 4 period Linear Weighted Moving Average (LWMA)
----- 16 period Simple Moving Average (SMA)
----- 96 period Simple Moving Average (SMA)

2. Stochastic Oscillator - (As in Template)
----- %k and %d set to 42
----- slowing set to 12

3. Awesome Oscillator - (As in Template)

4. Relative Vigor Index - (As in Template)
----- 8 period.

5. Parabolic SAR - (As in Template)

Example:
Sell Entry:

Step 1: If 4LWMA and 16SMA are below 96SMA go to step 2. (Important)
Step 2: If 16SMA is above 4LWMA go to step 3.
Step 3: If Stochastic signal above main value go to step 4.
Step 4: If Parabolic SAR appears above candle/bar go to step 5.
Step 5: Place Sell entry and don`t forget a stop loss!

Sell Exit:

Step 1: If 16SMA is below 4LWMA - 1 point. (Important)
Step 2: If Parabolic SAR is below candle/bar - 1 point.
Step 3: If Stochastic signal below main value - 1 point.
Step 4: If RVI(Main and Signal) and AO are Positive - 1 point.
Step 5: If RVI(Main) is over RVI(Signal) and AO is Green - 1 point.

If 3 out of 5 points are satisfied close the trade.

Repeat the procedure in reverse for Buy Entry orders and Exits.

Suitable for short to medium term traders. Operational on 15 minute chart. But feel free to tweak and use your imagination!.

I have included an example image of good trade. (hypothetically)

Always try and use your own intuitive power as well!. Everyone is blessed.

I would be glad and appreciate feedback and comments.

Good Luck!.
god bless all,
zapper.

*All Trading Systems and Strategies carry risk. Please use this at your own risk and limit your exposure based on money management principles.

how many pairs have you tested this strategy on Zap?

works well with GbpUsd, EurUsd, AudUsd, UsdCad and UsdChf... the maximum profit factor over a period of 5-6 months for EuroUsd was 1.92. Yet to demo test. I`ll be publishing results soon (when i get time).

Interesting little system, clean and not too complicated.

Being a fan of the M15, I Will give her a test run tomorrow at Tokyo open.

Thanks for sharing.

cheers mate. have fun.

good luck!

Hi Zapper

Can you please clarify what the "main value" is?

"
Step 3: If Stochastic signal above main value go to step 4.

"

Thanks,
Simon

In the Stochastic Oscillator, you have 2 lines. One is the Signal line: (Dashed in red color) and the other is the Main line: (Solid in Light Sea Green color)

Refer to the template. It will be clear.

cheers!.

Good luck trading!.

Update:

Of all the Pairs, i found EurUsd and UsdChf to have a very high response to this strategy, under emotionless trading with very strict, intuitive and good money management.

Calculated Profitability:

Around 200%+ pure profit for 4 months of trading EurUsd starting 03/06/09 to date.

good luck all.
zap.

hello zapper:how do you put your stop loss?

I would suggest a stoploss that`s 10% of the account balance away... that`s the way i have optimized it...

example:

If I have an Account Balance of $1000, then my risk will be 10% of it away, in pips... (if i`m playing $1 per pip). so, i`ll risk 100 pips. Also use a least pip trailing stop... it will work great!. I have found that any value between 10 to 14% risk will be optimum. Some pairs perform very bad and some have a smooth uptrend in profitability.

Very important: Please, don`t forget to bank your profits each week or month. Or there`s no point in making money... It applies to all systems.

First, try playing in demo or mini or micro accounts with very high leverage and very low lot sizes. Once you get a hang of it... you might start minting money .

The entries and exits are very clear and well defined. It is in your hands to take care not to over leverage your trades.

good luck all,
zap.

Good system Zap!

All the best

Regards,
Ghous.

hello zapper,an other question:you said :"Sell Exit:Step 1: If 16SMA is below 4LWMA - 1 point. (Important) and If 3 out of 5 points are satisfied close the trade."but if Step 1 didnt Appear，the other 3 out of 5 points are satisfied,what should we do?thanks

thank you very much.

good luck!
zap.

well, I would urge you to make a decision under such a situation.

Don`t exit unless 16SMA is below 4LWMA. that 1 point should always be satisfied as it is a crossover and an indication of a potential trend reversal... that`s as far as the reasoning goes.

cheers,
zap.

I Will demo test and publish results at the end of 1 week.

until then,
have a great go!.
good luck all.
zap.

Zap, I can understand how people are getting confused with that.

You sure the Red line is the signal and not the main line?

Obviously when the Green line breaks up above the red line we have an up trend and when it breaks below the red line we have a down trend.