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The "simple forex system"

  • #1
  • First Post: May 21, 2006 9:07pm May 21, 2006 9:07pm
I read about a system called the "simple forex system"
It is so simple but looks like it works really well.
You use a 1hr. 30mim,or a 15mim. chart.
You set your ema`s at 10,25,and 50.
very simply when the 10 ema goes through the 25ema and continues through the 50ema you Buy/Sell in the direction the 10 is going onse it breaks through the 50.
You set a stop loss at 25 pips and a limit at 50 pips.(this way when you win you win twice as much as you lose when you lose) If over time it goes right just 50% of the time, you make money.
I was hoping someone could help me with something.
I don`t know how to use the programs that people use for backtesting I manually checked back for the maximum my charting package would allow on 6 pairs and got quite good results.
(My 1hr only allows 30 days and my 15min allows 10 days.)
I was wondering if anyone has done a longer backtest on this simple system or could run one and let me know what the results are.
Really I know it sounds too simple but I was amazed at the results I got with my manual research.
  • #2
  • May 21, 2006 9:43pm May 21, 2006 9:43pm
Try your EMAs at 5 / 13 / 62 same system

This tyrpe of system is common... the one I am talking about is from Rob Booker. His web site is www.robbooker.com

The guy is auwsome !!!

Add a couplr of other indicators to help you... RSI or SAR
  • #3
  • May 21, 2006 9:57pm May 21, 2006 9:57pm
i've never done it myself but I know people uses metaquote 4.0 software for free charting service. They then program in the system for testing and run it to see the result. You can ask people here on this forum to program your system for you. It's called an EA (Expert Advisor).
  • #4
  • May 21, 2006 11:39pm May 21, 2006 11:39pm
when they cross set a stop order 10 to 15 pips out, it will kill some of the noise. (idea stolt from bunnygirl cross)
  • #5
  • May 21, 2006 11:50pm May 21, 2006 11:50pm
Thanks for the replies,..franosa, I took a look at Rob Bookers site and whould have to buy his book and wait for it to come to see how the system is traded but your roight it does look pretty similar only using 5 / 13 / 62 ema`s instead. thanks.
nitman,.... I downloaded the metaquote 4.0 software and it looks pretty intimidating.
I will be honest, I am not great with complicated computer programs and worry about my ability to learn how to program this software to do any meaningfull backtesting.
However you mentioned that I could ask people here on this forum to program this system for me. It's called an EA (Expert Advisor) you said.

So here goes..........
Could someone here who does this programming please help me It is a pretty simple program and I sure would like to know how it would have fared over the past year.... Thanks in advance for any help
  • #6
  • May 22, 2006 1:10am May 22, 2006 1:10am
Quoting franosa
Try your EMAs at 5 / 13 / 62 same system

This tyrpe of system is common... the one I am talking about is from Rob Booker. His web site is www.robbooker.com

The guy is auwsome !!!

Add a couplr of other indicators to help you... RSI or SAR
Amen and amen to the robbooker add on. I also use a McGrew MCAD and a slow stocastic. I also watch the RSI on the 1hr. I use 2 monitors with the 1hr on one and the 15min on the other.
Nolite dormiens pungere ursum. -- Latan Proverb.
  • #7
  • May 22, 2006 1:41am May 22, 2006 1:41am
Thanks for the tip witchazel. But I already have stops at 25 pips and any earlier would have me out to soon I`m afraid.

MrWhipple, your avitar implies that you are a full time trader do you use Rob Bookers system exclusively and did you learn his system from his book ?

Folks I appreciate all replies but am still waiting for some help with my original question......anyone else?
  • #8
  • May 22, 2006 2:19am May 22, 2006 2:19am
Backtesting depends on what platform you are working on. I do most of my testing on a propritary program that I am writing myself in Python. I trade With VT Trader and it is hard to back test with it.

I don't have any hard figures for your simple system, but I would wager that MudBuddah (sp?) or Dialist would have some numbers for you.

I learned his system from some of Rob Booker's e-books and emails with him. My son is taking his training now and I mentored for a while with a guy that was a deciple of his. I plan to take his 1 on 1 traning in June or July. My Trading team (Team Forex Fantasy) want to someday all take Rob's live training as a team.

I use other plays too when needed, but my basic setup is a tripple EMA cross with a McGrew MACD and a slow Stoch. (I used to depend exclusivly on the old two up, one back, a hot meal a day, and a clean pair of socks. But I was in the Army then )

Yes I trade sort of full time. I am disabled and some times I am down and you won't see me for a week or two. Latley I have been diverting some of my trading time to putting up a website for my trading team. (see below). I also have a wife, eight kids, three chickens, four cats and a verrrrrrry large dog named Mongo.
Nolite dormiens pungere ursum. -- Latan Proverb.
  • #9
  • May 22, 2006 2:33am May 22, 2006 2:33am
Quoting MrWhipple
Backtesting depends on what platform you are working on. I do most of my testing on a propritary program that I am writing myself in Python. I trade With VT Trader and it is hard to back test with it.

where do you get the data to dump into the program? I would sure like to start gathing statistical data
  • #10
  • May 22, 2006 2:56am May 22, 2006 2:56am
Quoting witchazel
where do you get the data to dump into the program? I would sure like to start gathing statistical data
Here are a couple of places to try: ratedata.gaincapital.com I know Yahoo has some data but for the life of me I can't find the link right now. I just suck the data out of VT Trader with a little script that I wrote.
Nolite dormiens pungere ursum. -- Latan Proverb.
  • #11
  • May 22, 2006 3:18am May 22, 2006 3:18am
This seem a good system, but what would be the best time frame?
  • #12
  • May 22, 2006 5:08am May 22, 2006 5:08am
MrWhipple, on your 15min chart what settings do you use for the slow stoch?
Do you use the same stoch setting for the longer time frames?
  • #13
  • May 22, 2006 6:49am May 22, 2006 6:49am
Quoting MrWhipple
Here are a couple of places to try: ratedata.gaincapital.com I know Yahoo has some data but for the life of me I can't find the link right now. I just suck the data out of VT Trader with a little script that I wrote.
Mr. Whipple,

Do you know what time zone the data is translated? EST?
  • #14
  • May 22, 2006 7:55am May 22, 2006 7:55am
Quoting randomlight
Thanks for the tip witchazel. But I already have stops at 25 pips and any earlier would have me out to soon I`m afraid.

MrWhipple, your avitar implies that you are a full time trader do you use Rob Bookers system exclusively and did you learn his system from his book ?

Folks I appreciate all replies but am still waiting for some help with my original question......anyone else?
You should try asking with a new thread so other people can see your request from the title...
  • #15
  • May 22, 2006 1:01pm May 22, 2006 1:01pm
Quoting randomlight
I read about a system called the "simple forex system"
It is so simple but looks like it works really well.
You use a 1hr. 30mim,or a 15mim. chart.
You set your ema`s at 10,25,and 50.
very simply when the 10 ema goes through the 25ema and continues through the 50ema you Buy/Sell in the direction the 10 is going onse it breaks through the 50.
You set a stop loss at 25 pips and a limit at 50 pips.(this way when you win you win twice as much as you lose when you lose) If over time it goes right just 50% of the time, you make money.
I was hoping someone could help me with something.
I don`t know how to use the programs that people use for backtesting I manually checked back for the maximum my charting package would allow on 6 pairs and got quite good results.
(My 1hr only allows 30 days and my 15min allows 10 days.)
I was wondering if anyone has done a longer backtest on this simple system or could run one and let me know what the results are.
Really I know it sounds too simple but I was amazed at the results I got with my manual research.
Hi, Randomlight,
I've been there and I think I understand you. Keep in mind, though, that all lagging indicators show good results while the price is trending, but you might get whipped out while the price is ranging. I am working full time, so don't have too much time, but now I am finishing my first Expert Advisor and for the sake of programming practice I might help you, if nobody else will, just give me about a week to finish whatever I am doing for myself. Then I'll write an EA for you and I will backtest, so you'd know the results. Also you should tell me exact settings of your MAs (price open, price close and so on) and the entry moment, when the MAs crosses, at what price you want to enter the market(at close, or open and so on), in other words look at your manual testing results in detail and let me know. As I said, I will be busy doing this week, but maybe on weekend I will write the EA. It's not that much of work, but I am just learning, so I have a lot to think about, before setting up a program.
Good luck,
Lietuve
  • #16
  • May 22, 2006 2:45pm May 22, 2006 2:45pm
one thing i remembe rob saying at his london seminar was that these ma crossover systems don't work as well as they used to. i think he used this system a lot a few years ago.

he also mentions watch out for the DNA spirals when the markets range - however they provide good entry points on trend retracements.

i say all this but i think he has updated this system in one of his e-books recently so maybe he likes it again..?

Quoting franosa
Try your EMAs at 5 / 13 / 62 same system

This tyrpe of system is common... the one I am talking about is from Rob Booker. His web site is www.robbooker.com

The guy is auwsome !!!

Add a couplr of other indicators to help you... RSI or SAR
  • #17
  • May 22, 2006 2:57pm May 22, 2006 2:57pm
Something to think about with MA crossover systems;

These look great on the charts in manual backs but keep in mind the price doesn't cross when the MA's do. It's better to focus on prices crossing and closing above/below MA's for entry than MA's crossing each other.

k
  • #18
  • May 23, 2006 1:00am May 23, 2006 1:00am
One of the nicest breaths of fresh air in my trading education came when I digested James16's price action section . The idea of not using MAs as cross over's but rather as a type of support and resistance. To watch and observe how the price plays at/off the ma. There are particular mas that are so facinating to observe in past historic chart patterns and then also give one confidence enough to begin to trade live off that action around the moving averages.

I honestly can't say that i will no longer use "cross overs" but they are no longer on my top 5 picks of how to trade!

Cheers,
Thom
  • #19
  • May 23, 2006 1:37am May 23, 2006 1:37am
[quote=randomlight]Thanks for the tip witchazel. But I already have stops at 25 pips and any earlier would have me out to soon I`m afraid.
QUOTE]

Hi randomlight,

I think witchazel meant to use a sell stop order, to get into the trade a few pips later. This eliminates being stopped out when the price oscillates around the MA, and takes care of those retracements within the first 20-30 pips.

There is several systems similar to the one you are using, one of best known (and described) being probably "BunnyGirl Cross" aka BGX. She recommends using e 25-30 pip filter to eliminate whipsaws.

Happy trading,

Dane
  • #20
  • May 23, 2006 2:19am May 23, 2006 2:19am
I was wondering if using ema`s indicators on a 1 or 5 minutues chart has a sense or is too risky ?

cheers,
christian
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