***** A statement about the move to the commercial section is here: http://www.forexfactory.com/showthre...83#post6047983 *****
***** Simplified and current system starts here: http://www.forexfactory.com/showthre...66#post5970766 *****
This is an "end of day" system that I have been looking into. It is not thoroughly tested yet but a visual backtest looks very promising and it could be a good method for people with a full time job or who live in places where trading the London session means being up at 3am.
It takes into account the monthly trend and then trades the daily only in that direction. It can be used on any pair or other instrument but I have used eurusd for the example. I have shown 2 winners and one that would be currently open. Of course there are losers and I will try and find one to illustrate the fact soon.
The rules are fairly simple. Use a 5 ema close and an 8 ema open. Go to the monthly chart and find the current trend direction. The first chart below is the eurusd monthly chart, the trend is down, we are looking for shorts.
Then go to the daily chart and wait for the trend to be moving in the same direction, ie the 5/8 ema to cross in the same direction as the monthly and start moving down. The second chart below is the daily, the trend is down, the monthly trend is also down, we are looking for shorts.
Now we have identified the trend on the monthly and the daily is moving in the same direction we wait for a candle to close against the trend. In this case the trend is down so we are waiting for a green candle.
Once we have a green candle we place a pending order to sell the spread plus 2 pips below the low of the candle. The stop loss goes 5 pips above the candle or 100 pips away, whichever is closest. The take profit goes 200 pips away.
The 3rd and 4th charts show two trades taken according to the rules and the 5th chart shows one that would still be open.
I have looked through lots and lots of pairs and I find more winners than losers which considering the risk/reward is always 1:2 or better is a good sign. As mentioned above you do find some losers and I will attempt to find one and post it in a little while.
Also as mentioned this is not fully tested and stands as an idea only at the moment but I think it's an idea worth some time spent on it.
Let me know what you think.
***** Simplified and current system starts here: http://www.forexfactory.com/showthre...66#post5970766 *****
This is an "end of day" system that I have been looking into. It is not thoroughly tested yet but a visual backtest looks very promising and it could be a good method for people with a full time job or who live in places where trading the London session means being up at 3am.
It takes into account the monthly trend and then trades the daily only in that direction. It can be used on any pair or other instrument but I have used eurusd for the example. I have shown 2 winners and one that would be currently open. Of course there are losers and I will try and find one to illustrate the fact soon.
The rules are fairly simple. Use a 5 ema close and an 8 ema open. Go to the monthly chart and find the current trend direction. The first chart below is the eurusd monthly chart, the trend is down, we are looking for shorts.
Then go to the daily chart and wait for the trend to be moving in the same direction, ie the 5/8 ema to cross in the same direction as the monthly and start moving down. The second chart below is the daily, the trend is down, the monthly trend is also down, we are looking for shorts.
Now we have identified the trend on the monthly and the daily is moving in the same direction we wait for a candle to close against the trend. In this case the trend is down so we are waiting for a green candle.
Once we have a green candle we place a pending order to sell the spread plus 2 pips below the low of the candle. The stop loss goes 5 pips above the candle or 100 pips away, whichever is closest. The take profit goes 200 pips away.
The 3rd and 4th charts show two trades taken according to the rules and the 5th chart shows one that would still be open.
I have looked through lots and lots of pairs and I find more winners than losers which considering the risk/reward is always 1:2 or better is a good sign. As mentioned above you do find some losers and I will attempt to find one and post it in a little while.
Also as mentioned this is not fully tested and stands as an idea only at the moment but I think it's an idea worth some time spent on it.
Let me know what you think.
Attached Image(s) (click to enlarge)
