EMA c/o happened , price pulled back to touch 21 EMA, now started going up in long direction. if the current bar closes above 21 EMA and MACD turns green, we can enter LONG
Is that true ?
thanks a lot for the great video
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Exactly! If price closes above the 21 and MACD turns green we will enter Long.
I just had a brainwave, on the discussion of subsequent retracements to the 21 EMA then continuing with the initial trend...
This could be a signal to get in again or add more trades.
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i dont want to confuse this simple strategy. what you are saying is we can add one more lot if it retarces and touches 21 EMA and continue the original trend ? so we could have one add per each such occurance. but at any time, all prev trades must be in profit or closed in profit
i dont want to confuse this simple strategy. what you are saying is we can add one more lot if it retarces and touches 21 EMA and continue the original trend ? so we could have one add per each such occurance. but at any time, all prev trades must be in profit or closed in profit
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Not a bad idea - adding to a position at each retracement/trend continue. However, this would definitely complicate trade management and throw off money management.
The questions I would ask would be 1) what is the max number of position increases one would take?, 2) what would the SL/TP be for each additional position?, 3) what is the max cumulative risk of all positions in one specific direction?
Not a bad idea - adding to a position at each retracement/trend continue. However, this would definitely complicate trade management and throw off money management.
The questions I would ask would be 1) what is the max number of position increases one would take?, 2) what would the SL/TP be for each additional position?, 3) what is the max cumulative risk of all positions in one specific direction?
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coming from money management concepts only....
1. add should be only when we are in profit
2. no more than 3 adds (including original trade)
3. add trade will have same SL/TP concept as original.
for this system, i would consider add only when the current trade is closed in profit. its like a new trade with same entry/exit criteria. but if your backtest results prove that only the first cross gives good profitability, not the subsequent crosses then we can remove this idea
has anyone tried this on H1 ? sometimes H4 is too slow
Hi, I also don’t have the time to look over charts all day and so your method is very appealing to me. Your trade/system explanations are excellent and this really helps with the understanding. Thanks for sharing. On the subject of trade management, have you ever used the MPTM EA by Steve Hopwood? It's a great EA that allows you to manage your trades automatically, you can set breakeven points at set levels (set by you), jump your SL as price moves in your favor, close a portion of your position to name just a few of the features. There are loads of things in it that I have never used but the ones I do work brilliantly. You would need to do some tests to find the best settings etc but it could eliminate the trades that don't quite hit your TP and then retrace, if you had MPTM set a breakeven / jumping stop you may even close the trade in profit. I think it could be useful to you as I find it a great help whilst I can't keep an eye on my trades. You can find Steve's MPTM thread here... http://www.forexfactory.com/showpost...99&postcount=1 Let me know your thoughts. Regards, Indy360
Not a bad idea - adding to a position at each retracement/trend continue. However, this would definitely complicate trade management and throw off money management.
The questions I would ask would be 1) what is the max number of position increases one would take?, 2) what would the SL/TP be for each additional position?, 3) what is the max cumulative risk of all positions in one specific direction?
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hi
iam unable to download the MACD indicator. is there a fault with the link ?
from your test / results, which is the best pair to trade with this system ?
i think the best way to find out if adding to trades will work is to do a backtest. i personally feel that adding to trades will significantly reduce your profit levels and as such render your present system invalid. but backtest is the best way to find out. in a trending market adding to trades might work. but we all know the major pairs are unpredictable...
iam unable to download the MACD indicator. is there a fault with the link ?
from your test / results, which is the best pair to trade with this system ?
i think the best way to find out if adding to trades will work is to do a backtest. i personally feel that adding to trades will significantly reduce your profit levels and as such render your present system invalid. but backtest is the best way to find out. in a trending market adding to trades might work. but we all know the major pairs are unpredictable...
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Hmmm...not sure why the link didn't work for you. I just tried it and it downloaded. Give it another try. It may be that FF's servers were having a problem when you tried the first time.
I also tend to agree with you on adding to a position but for different reasons. It may well be more profitable but since my primary objective is to not have to micro-manage my trades, adding that additional layer would be counter to my trade objectives.
I also don’t have the time to look over charts all day and so your method is very appealing to me. Your trade/system explanations are excellent and this really helps with the understanding. Thanks for sharing.
[color=black][font=Verdana]On the subject of trade management, have you ever used the MPTM EA by Steve Hopwood?...
3. add trade will have same SL/TP concept as original.
for this system, i would consider add only when the current trade is closed in profit. its like a new trade with same entry/exit criteria. but if your backtest results prove that only the first cross gives good profitability, not the subsequent crosses then we can remove this idea
has anyone tried this on H1 ? sometimes H4 is too slow
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Personally, I do not think I will implement this idea. Not that it is a bad suggestion - it has potential. But I don't think I want to spend that much time watching my charts. I like entering and then forgetting about my trade until the next 21/89 cross. Works better with my schedule.
Looks like we might have a trade for usd/cad coming up...as long as it closes below 21ema....macd is already red....so in a few hours at least for me i might pull the trigger.
Not a bad idea - adding to a position at each retracement/trend continue. However, this would definitely complicate trade management and throw off money management.
The questions I would ask would be 1) what is the max number of position increases one would take?, 2) what would the SL/TP be for each additional position?, 3) what is the max cumulative risk of all positions in one specific direction?
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On added trades make the lotsize relatively smaller.
Rough example:
Second retracement and trend continuation happens into about 1/10th of our profit target.
So we add a trade that is about 9/10ths of our initial trade lot size but with the same T/P as the initial trade or 90% of that T/P.
S/L for this additional trade could be the initial trade's order price.
Hmmm...not sure why the link didn't work for you. I just tried it and it downloaded. Give it another try. It may be that FF's servers were having a problem when you tried the first time.
I also tend to agree with you on adding to a position but for different reasons. It may well be more profitable but since my primary objective is to not have to micro-manage my trades, adding that additional layer would be counter to my trade objectives.
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i downloaded the indi, and transferred it to my MT4 indi folder. but when i go to the indi folder, it does is not there. so although downloaded its not appearing on my MT4.
can someone make a ea for closing the trade on the cross of the 89sma and the 21 ema ?
or an ea that sent a e-mail
on candle close like the rules?
its an easy ea i think
Looks like we might have a trade for usd/cad coming up...as long as it closes below 21ema....macd is already red....so in a few hours at least for me i might pull the trigger.
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I am currently staying out of the USDCAD. It has been in a range (0.9970 - 1.0370) for the last 13 weeks. A symmetrical triangle has formed (low on 10/14 of .9977 and high on 10/19 of 1.0371) with progressively higher lows and lower highs since then. During that period I have lost on two USDCAD entries (the 1st an 85% loss and the second a 75% loss), and stayed out of one other.
Once the USDCAD breaks the triangle (either long or short) I will look to trade it again. At that point I will wait for trend, pullback to 21, and return to trend to enter.
