Simple trading system

i will start posting my trading system and its results from tomorrow.
the rules are simple.
1. Watch for the hourly bar to go higher than the previous bar.
2. Now look for 5 minute bar to pullback.
3. enter the pullback of the 5 minute bar.
4. the intend is that it will attempt another breakout.
5. if breakout succeeds, then start trail stopping the trade.
6. if the breakout attempt fails to make new high. its over.
7. if the 5 x 9 ema crosses again after trade entry and i am in profitable position, keep stop above breakeven.

Trend detection:
5 ema>9 ema>20 ema on 5 minute bar = Long and Strong
5 ema <9 ema >20 ema. market is divergence. no new entries. look to exit current ones.
5 ema < 9 ema < 20 ema. Short and Song.

very simple and good filter , trying it on the jse top 40 index

checking on 3 am today on aud.usd and it works like magic.
will start apply money on this from next week.

I think strategy looks promising. Will have to follow it for awhile. Might not need anything except the moving averages to make the trade.

your chart shows many entries. on each one you would have moved your stop to break even right ? if so , you would get stopped out on BE.

the many entries are also due to the fact that the market was trending. how would you deal with a ranging situation ?

please explain the pullback rule. do you wait for it to touch the ema, pierce the ema, close below the ema, or be just near to the ema ?

towards the end of your chart, market starts to fall heavily. if you had all your previous positions still open, you would have been stopped out on all of them. how would you deal with something like that and at least take out some profits ?

also, how do you decide on when to get in on the pullback. do you wait for the price to pullback to the 5 ema, 9 ema or 20 ema , before entering.

on post 1 you describe just a long entry. do you not take short entries then ?

grand strategy to catch a few pips from time to time

thanks junkone

This indicator is for you .... tf hi-low ... 60 ... example...

Sir, with all due respect, you have not explained yourself well. From the picture it looks like you should have taken the pullback on the 5 minute chart that was 5 bars back from where you have your first entry. After all, all you said was "take the pullback on the 5 minute chart." This ambiguity is what is leading people to ask what you mean by the pullback. Please try to be clear.

http://www.mbtrading.com/download/na...7_0bc71813.jpg

the pullback is anywhere between the 9 -20 ema.

it did it just now @ 9.01 on aud.usd.

closed off for few pips. i started watching it late today. the entries @ 7.30 pm followed by 8.20 pm would have make me a bundle.
back tomorrow @ 3 am to trade the euro markets.

aud.usd making new lows. eur near new low. so lets watch pullback for aud.usd and hopefully eur will breakdown again for new trade for me.

http://www.mbtrading.com/download/na...7_0d6dc0a2.jpg

got 7 pips out of the move. need 3 more to close off for today

anywhere between 9-20 ema ? so how do you decide exactly what point to get in ?

i wait for teh bars to narrow down and then enter. this way, i know the retracement is getting tighter and tighter.

not sure what you mean. please show an example.

Your trading system is really very simple. I think, it will well work so I am going to follow it.

Hey Junkone,
Could you explain how the indicators on your chart help you in entering a trade?

Thanks
Ian

i dont use the indicators for entry. I use ATR to see how much potential is there per bar. CCI is used to validate the direction just in case.

infact, my trades will be similar to Woodies ZLR except that i use the MA to determine trend and pullback range to determine entry. i enter limit order when the range is smaller than the other ranges visually.

With all due respect, do you really believe in this? How would you deal with a ranging situation ? I have seen hundreds of these or similar strategies as well as yours. I can tell you that no one does not work.
Please do not put real money on this, only my advice.