Consolidation Buyer, System & EA

Consolidation Buying System,


Heres a system that has some high potential so first let me lay it out for you..

The system is based on using two things.. price action and a simple moving average

in a nut shell heres the system..

(example long.. reverse for short|| EUR/USD)

TF = Daily

1)check if the 21 SMA is heading up to determine the trend and confirm with 21 > 50 SMA

2) wait for an inside day.. (inside bar)

BUY STOP = high of inside bar + 5 pips

SL = 50 pips

TP = 100 pips (twice the stop)

3) dont move order unless new inside bar(with rules 1 and 2 still met) than we move pending order.. and don't close your orders unless rule 1 is broken



so you can see its basically all about taking a non greedy amount from the trend

(BACKTEST) you can glance at the back test to get a rough insight into the system.. it shows a working method for over 10 years even after risking 5% per trade




Heres where things get tricky.. lets be honest.. theres a lot of crap systems out there.. this method is decent so I share it with you for you to kindly provide some of your own results.. in other words..............

This method will not get you rich tomorrow morning.. or even in a few years.. but it certainly would keep you making money.. so I'm sharing it with you so you have a model of something that works for 10 years and is consistent.. maybe a few throw backs of how to increase it from consistently profitable to quit your day job profitable would be welcome.




I know I already scared away a bunch of people who are going to start looking at more systems.. good.. for those who remain at least you'll be off with a good foot rather than a system which is only profitable during a specific period of time


I hope you find this system insightful in some aspect,

NY



PS: EA, I provided the EA.. you can play with stoploss, takeprofit, percent per trade, and open and close hours (given its something like 9-18 mt4 time)

you can change the TF but daily is really your bread and butter...


PSS: This system doesnt take trades very often.. so its important to think about using it on other majors.. then you could be in more trades more often.. and your ROI would be greater over time since your in trades while out of the EUR/USD etc.. keeps the money flowing.

Thanks for the simple system, I will have a look at it.

Wow, look at that huge drawdown, from about $32,600 to $19,000. If you were in 2 currencies with this kind of drawdown it would get you a margin call.

like I said.. the EA is doing 5 percent as an example.. with 1 percent trading max drawdown is 10%ish when you hit the 10 consecutive loses in a row..

I did 5 percent per trade to push the test to the limit... I'm sure you wouldn't be risking 5% of 32,000 account.. if multiple positions are open I would expect splitting up to half % per position or so..

anyways like I said.. its just a starting point.. like many of the other systems on this forum its anything but perfect..

by the way the system is based on some internet findings so I didn't create it.. its just that any system with consistent results is always a nice find.. so I shared.

Thanks

I dont see a reason to use inside bar in this system ))) maybe its possible to use just classical MA cross ))) it looks much better

I already test your EA system, its not bad I think, for 50 - 100 range we should use TF not less than daily

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cci divergence

Great, simple and straightforward strategy!


Nice one!

Honestly - I like such simple but profitable strategies. They are easy to grasp. but stable and consistence in pofits in the long run....

The essential idea here is - after you confirmed the overal market bias just start to attack the market by taking trades, which are based on breaking of little ranges, in tune with overal move (trend). It is true IB (inside bar) trading technic.


Good luck!

(P.S. - I wonder why so few people are posting here... In fact - it is one of the most stable and simple strategy on this forum.)

MA crossing is something, which do not give you very defined risk.
In fact (my personal view - MA crossing is a very "bad" entry signal. Even retest of the MA after the crossing is much more better for entry) Inside Bar gives you very accurate defined risk, and it gives you one of the best entry point, because this entry is after the consolidation (on little TF), and vety often the market starts moving like a rocket off that place.

Just my opinion.

Good luck!

Just resonable using of MM, and not risking big % in one trade will help here...

... and, you have to remember: the more pairs you use - the more you have to spread the risk between them. I mean - if you use 1 pair - you risk 1% in one (each) trade, if you use 2 pairs - you use 0,5% in one (each trade) etc...


Good luck!

Yeah you could probably pyramid here to snowball your profits... made this along time ago.. I posted because I personally have never seen as consistent of a system around.

But the problem is profits do seem stunted and not that make me a millionaire quick system so thats why no one cares.. but I posted it as a means to see something that has potential and others could ponder on the idea and design something themselves.