The7 Trading System

function run()
{
// Open a Daily chart 
BarPeriod = 1440; 

// Place a 5 EMA High and 5 EMA Low on the chart. 
var EMA5H = EMA(series(priceHigh()),5);
var EMA5L = EMA(series(priceLow()),5);

// Stop Loss is high/low from last candle.
Stop = priceHigh(1) - priceLow(1);

// Short when candle closes inside the channel
 if(priceOpen() > EMA5H && priceClose() < EMA5H && priceClose() > EMA5L)
   enterShort();
// same for long. Let it run until you see opposite signal 
 if(priceOpen() < EMA5L && priceClose() > EMA5L && priceClose() < EMA5H)
   enterLong();
}

Quoting jcl365

Disliked

This is very interesting. It is an extremely simple system, yet it is indeed profitable with some pairs. It returns 10% per year on EUR/USD, 84% on AUD/USD, and 45% on USD/CAD. It loses money with GBP/USD, USD/CHF, and USD/JPY.

If someone wants to automated trade this system, here's the simple code (for Zorro):

[code]function run()
{
// Open a Daily chart
BarPeriod = 1440;

// Place a 5 EMA High and 5 EMA Low on the chart.
var EMA5H = EMA(series(priceHigh()),5);
var EMA5L = EMA(series(priceLow()),5);

// Stop Loss is high/low from last...

Ignored

Quoting domino01

Disliked

7 thanks for avery interesting system. Have you tried it with Heiken Ashi candles instead? HA candles will probably give more consistent signals.

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Quoting The7

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Sorry if I was not clear enough about the entry rules. But honestly dont know how easier I can explain. If the candle closes inside the channel (5Ema High and 5 Ema Low) I immediately enter the trade. No buffer, no extra rules. (Again, not looking for perfect patterns)

I followed the flying buddha system for some time and came up with this. Solely a 5 EMA close would give to many false signals but thanks pointing this out. The channel is avoiding retracements most of the time...

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Quoting aelimian

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Please I am still having difficulty getting all the rules right. Could you show all buys and sells on a single chart?
Thanks

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Quoting sam2vt

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Hi,

Some questions as attached. Thanks for sharing.

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Quoting The7

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"If candle closes inside the channel I enter the trade" With all due respect dont know how else to word, structure and sentence this differently...

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Quoting Pipvalhalla

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First, thank you for sharing a system with everyone. But I am confused too. I understand that you enter when a candle closes inside the channel, but if a candle closes inside the channel, how do you know if you will go long or go short? Thank you.

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Quoting The7

Disliked

With this system we are trying to catch the trend from the start, with the very first candle. Meaning if the candle that closes inside the channel is red go short, if its blue go long..

Ignored

Quoting The7

Disliked

Sorry if I was not clear enough about the entry rules. But honestly dont know how easier I can explain. If the candle closes inside the channel (5Ema High and 5 Ema Low) I immediately enter the trade. No buffer, no extra rules. (Again, not looking for perfect patterns)

I followed the flying buddha system for some time and came up with this. Solely a 5 EMA close would give to many false signals but thanks pointing this out. The channel is avoiding retracements most of the time...

Ignored