A "new" simple system based on MA

And Larry, congrats on your trading day!120 pips on any day is out of the ballpark awesome. It appears you are applying Hmaoui's rules to a very,very small time frame. Hmaoui recently posted a great trade on larger time frame, so if apply the same rules should work on very small time frames too. Nice!

I suppose you are referring to HMAOUI post Post 1,254. Yes, very good explanation with lateral thinking ... I like it very much.
I am compiling a book for myself with all HMAOUIs suggestions and hints to allow a clear framework to guide me through this jungle. About 18 months ago, I tried to write a EA to trade his method, but gave up after 1 month as there are sooooo many things to consider.

Yes, my timeframes are in ticks and pips and this is mostly due to my impatient nature.....plus I use my own tools to support this style of trading. Otherwise you could not do it or collapse of exhaustion within 2-3 hours.

I still believe that psychology is a big factor in this game. I am trading micro amounts(even so the account could handle larger trades), so loosing or winning is really only a number.. a bit like watching a game on TV. So I want to build confidence in my tools, skills and day to day trading activity and once I feel confident, I only change the trade size.....Deja vu.....yes, everybody wants to do this, we are all in the same boat.

I have taken my last trade for the week 4 pips only....but one should not complain about making pips.

I am annoyed that the market moved 25 pips this morning with almost no retrace and I sitting here like a stunned mullet, then a small retrace, 4 pips....I have not found a way of entering on such a rally. Normally I enter exactly when it reverses and this annoys me! My wife looks at the chart and I can see in her face: That was obvious and you did not see it....

Enough of that as I need to pack to go skiing (Winter in Switzerland)


The 1 minute candle broke through the EMAs and DMI is point up, STOC is going up, ATR is going up.. and we finally had a small retrace

Time to look at the 49 tick chart... I waited for the price to go past the EMAs...STOC is down and going up and the black line going through the candle trigged me to push the button...

Time to look at 1 pip


Ohhhh yes, this is looking good to me, as always the 1 pip says it all SL 7, TP 4 as I wanted to enter several times if it was a longer trend....but it was not and I need to pack ...

Here again my best trade of the day.. why the best, because many others were crap. Netto for today: 43 pips on micro lots....Hey, but at least I can buy myself a cup of coffee for that money.

Here the 1 Min chart, I started looking at the other charts where the black line was. Stoc is high, dmi is green... I like it so far


Now look at the 49 tick chart. Stoc is high and dmi is red...wow, so far so good



No the 1 pip... stoc is also high... I wait for the dmi to confirm and off I go..... whooza... it really dumped... quickly



I wish I had the guts to increase my trade size.....not yet....

I am off to Asia for 2 weeks and want to trade full time in May. So I will increase my lot size after that to standard lots 1pip=10CHF

Hi Larry,
Is this the EUR/USD you are trading?

Hello everyone!
One entry for today with EUR / USD 1 % + . The rest of the deal I expect another 1-2% +

good results with this system so far?

Hello Everybody !

I am happy to be back again on my thread. I was not here because of a car accident but I am ok now. So I will trade after the NFP statement if there is good opportunity.

I can see that some of you trade on very short time frames (ticks charts). I would like to confirm you that this system will work on every pair, and on any TF but I must warm you on the fact that :

- Short TF are very volatile : it can be difficult to anticipate real trending movements
- To trade short TF you must be very very very disciplined. No mistake is allowed !
- Short TF means low profits, so you have to trade with the right broker. LMAX or Dukascopy are the best I know.
- Trading short TF is a real headache ! I mean that you need to be focused on very good setups, you need to be very very very disciplined, so the psychology is the real key. The system does not guarentee you the succes : it is your ability to trade the system and to follow the rule without any mistakes that will make you a successful trader. Dont forget this point : PSYCHOLOGY !!!!

P.S. : I dont forget that I announced you the e-book. But is was difficult for me because of my car accident to translate it in english (my mother's language is french).

I wish you all the best. And please continue to post your charts !!!

Uh! Happy to see You again! And Thanks for advices!

Hi Hmaoui,
I'm glad you are OK! Looking forward to your posts.

Thank you Bowforex. Hope that my advices help every traders here even them who dont trade with my system !

Hi,

scalp on EU, just 5 pips, because of the near 1.38 level. (i use BB for other system, not part of hmaoi's system)

... and 7 pips on the other side of 1.38.

Good morning campers

2 trades for the day, one with -7 the other with +12.

The 1 Min chart is indicating a possible HMAOUI entry for long. The STOC was at a low a while back but ....


Now I look at the 49 tick chart..... all the signals are confirmed


The 1 pip chart says the same thing....



12.2 pips in 43 minutes

Hello traders. Today, I would like to tell you a story from one of my student. He lives in Paris and before joining my classroom he blew up a 20K€ account !!! He took very expensive lessons with "specialists" who asked him 4500€ to learn their system and strategy. Unfortunately, the system they learnt him was not very good and not complete, and of course they didnt care about him after he blew up another 5K€ account ! He asked me for my classroom and what would guarentee him the success ? My only answer was that HE is the key of success. Of course I would teach him a system that I use and which is successful (the system on this thread), and I would coach him to use it according to his psychology and goals.

Yesterday, he called me because he listened to radio (BFM Business for those who know - bfmbusiness(dot)com) and to a french "specialist" who gives his trading advice everyday on this radio about the french index CAC40 (french traders here may know him - his site is percevalfinance(dot)com where you can see the price of his classroom !). He told us that he is bullish for intraday session and my student asked me for my sentiment. I told him that he must reffer to the system and forget all specialists advice : price dont care about specialists ! Unfortunately, he was so influenced by this guru that he followed him : He told us that we have to buy at 4430 and sell out at 4485 with a stop at 4410. Of course, you can check the chart joined and you will understand why I was bearish for the intraday sesion yesterday and why he lost money.

So the lesson is : FORGET SPECIALISTS AND FOCUS ON THE SYSTEM ! RESPECT THE RULES ! FOCUS ON A+ SETUPS ! BE PSYCHOLOGICALLY INDEPENDENT !!!! PSYCHOLOGY IS THE KEY !!!!

Today I sat down with a good friend of mine that used to be a trader in New York. He used to trade a system "in the old days" and said that with volatility decreasing currently to 70-80 pips per day, it is quite hard to adapt to these market conditions. Anyhow, we agreed to thoroughly test and practice Mr HMAOOUI's system and try to stick to most of the rules... why most of the rules. Well, we need to experience this system by using it and overtrading will teach us how to differentiate between a A+ setup and a C-....even so I am an expert in C- setups. I took 3 trades today on E/J the result was:
+4.9 -7 +12.2 -> resulting in 10 pips

all the settings are based on HMAOUI template except for DMI being set to 23 and I have a 89 EMA (15Min) being displayed in a light purple colour.

I took the trade below as there was a high stoc, price was below the long term trend line. This was not a A+ setup......but I was lucky



Now first let us look a the looser. Wanted to be early in the market when price crossed my 89 EMA on 15 Min and the long green candle was without a wick. STOC confirmed too...DMI was green......so why did I loose.... round number!!! 141 acts as resistance. I should now better! RN are very important, so are PPs. Should have waited and then taken the next one.. and I did take it and this was my 12.2 pips. DMI was red and the red candle cut through all the ST and LT EMAs. Yes, a real hunter would wait for confirmation but I do lack the discipline. I vow to improve!

Interesting point of view. I would have been lucky if I could talk with your friend who used to be a WallStreet trader ! :-). And to talk about the system, it is true that you must know the rules perfectly and be focused on the markets to look for A+ setups to get the best results. Of course, even if you are careful about the rules, you will have loser trades and that's why you have to be psychology prepared !!! Concentration, discipline, hard conviction, etc...

To illustrate your purpose, look at the chart uploaded : a 5mn chart of the french index CAC40 which is whowing us that even if we have a B/O, the major trend is bearish and Pivot is a rsistance level as the 4450 level is !!! So it is a buy signal that you wont take !!! After the first B/O we have a double top with a bearish divergence of stochastics. Then, the 4420 level which is the low of the day is broken and we have a pullback at 4423. This is the A+ setup !!!! And you would have earned around 35/40 pips in less than 2h. You may re-enter at the second pullback near 4400 confirmed by a bearish hidden divergence for another 20/25 pips.

which timeframe u prefer hmaoui?

i like 5 min for entry 15 for setup and 1h for trend is this right?

Hmaoui, glad to know that you are ok after the accident. Your system is simple and it works. On shorter TF it might be frustrating when multiple losses occur, but this is compensated with bigger RR due to the small stop level. I am using it on 5 and 1 mins for majors plus GJ. Thank you again for this system.

hello arlucad,

Yes your TF is good : Look at the 1h chart to get the overall trend, confirm with 15mn to get a setup, and enter with 5mn to have the best entry and a good SL. This is one of my best trading way ! But now, as I earned serious money, I also have a long term account where I trade looking at Weekly/Daily chart for trend and setup, and 4h/1h to get my entry level. Depends on the volatility of the pair : I can use 1mn instead of 5min or 1h instead of 4h.

I am happy to see that this system let you earn money ! Master it better each day and you will regulary earn your wage...