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The "simple forex system"

  • #21
  • May 23, 2006 8:26am May 23, 2006 8:26am
The first system I ever learned used 6 & 12 EMA's on a 1 or 5 minute chart. Split the chart into 3rds and use sup/res lines taken from larger timeframes. This is pure momentum trading and not a very profitible way to trade in my opinion (great for learning your trading station though). It is an in and out quickly system and must be babysat. The whipsaw on these timeframes was tooooo much.



Quoting trucco
I was wondering if using ema`s indicators on a 1 or 5 minutues chart has a sense or is too risky ?

cheers,
christian
  • #22
  • May 24, 2006 9:39am May 24, 2006 9:39am
Quoting bonmeister
The first system I ever learned used 6 & 12 EMA's on a 1 or 5 minute chart. Split the chart into 3rds and use sup/res lines taken from larger timeframes. This is pure momentum trading and not a very profitible way to trade in my opinion (great for learning your trading station though). It is an in and out quickly system and must be babysat. The whipsaw on these timeframes was tooooo much.
HI Bonmeister. Hey we come from the same training background! No mention of the company, but there is only one place i know that teaches that. I DITTO your "not a very profitable" statement, and as you said it is "great for learning your trading station". There is no quicker way to learn the buttons and gadgets than taking 300 trades in a month off one minute charts! Just do it in demo!!! LOL.

Cyz i'm a tinkerer, i moved quickly to the 5ema and 13ema cross (when i was using crosses for cross sake ; ) because i like fibo#s.

Thom
  • #23
  • May 24, 2006 12:44pm May 24, 2006 12:44pm
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.
I tested the system for EUR/USD on M30 and H1 time periods from Jan 1, 06 to May 1, 06. Here are the results:

M30:
Initial deposit 10000.00
Total net profit -1533.25
Gross profit 4041.75
Gross loss -5575.00
Total trades 74
Short positions (won %) 43 (18.60%)
Long positions (won %) 31 (35.48%)
Profit trades (% of total) 19 (25.68%)
Loss trades (% of total) 55 (74.32%)

H1:
Initial deposit 10000.00
Total net profit -1582.55
Gross profit 2349.40
Gross loss -3931.95
Total trades 45
Short positions (won %) 22 (22.73%)
Long positions (won %) 23 (26.09%)
Profit trades (% of total) 11 (24.44%)
Loss trades (% of total) 34 (75.56%)


As you see in both cases, this method is a loser. However, I might have been mistaken. Don't rely on the results of a simple test like this. The test I've made is based on an ExpertAdvisor written for MetaTrader 4.

Have Fun,
  • #24
  • May 25, 2006 12:11am May 25, 2006 12:11am
Quoting Zach
Mr. Whipple,

Do you know what time zone the data is translated? EST?
I don't know, I just use the stuff to test some of my Python scripts.
Nolite dormiens pungere ursum. -- Latan Proverb.
  • #25
  • Jul 5, 2006 9:56pm Jul 5, 2006 9:56pm
Someone made an ea on the forex-tsd forum....

http://www.forex-tsd.com/expert-advi...-strategy.html
  • #26
  • Last Post: Jul 6, 2007 4:12am Jul 6, 2007 4:12am
Quoting accrete
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
think a better way to unlag these MAs is to note price crosses/bounce. Daily charts seem to respond alot for 50day and 200day smas imho, well there are aways others that does respond alot but LOL 50 and 200 are usually used by stockists and index analysis, so why i tot why not try it on FX dailys as well hehehe. Sterling was supported throughout the year by it (200sma)...i think to date we have 3 touches.
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