Magic 5 - five pips only

If you look at Tk5's charts you will see clearly that momentum/sentiment trumps (is more important than) the 200 EMA - it is only a guide.
TK5 himself did take long trades below the 200 EMA, please look at his charts in the previous thread.

It all comes to short-time momentum - remember: we only want 5 net pips...

I'm using the EA in advisory mode only and got a signal on the USDCAD about 30 mins ago and am just waiting for AUDUSD & GBPUSD also.

Just took 7 net pips on NZD/CAD...bounce from S2 (thoug below the 200MA).

You said you traded AUDUSD today, could you share a screen with your trade?
Would you mind explaining how you identified the momentum change?
In my opinion would have been difficult to guess the change of momentum before the red arrow on my chart when the price made a higher high. Until that time, most of the traders would have guessed that the situation marked with the yellow box on my chart would repeat its self.

Hope this is not beginners luck but I have had 4 trades and 4 wins now since I found this thread. 2 trades the first 1 the next day and 1 today. I love the trigger this has given me. I take no notice of the 200 ema I decide on the direction of my trades by where price is in regard to Daily open.
I only want 2 trades a day to build my account happily so if this demoing continues this well hopefully I can go live!.

Hi Shoot. I am looking for 2 winning trades per day. Looking back on my charts most days there seems to be at least one trade on each of the pairs I am watching so I am hoping this is going to work for me. I just like to zoom out to give myself the best possible chance of getting my 5 pips. Once I have two I will stop for the day. I do not want to be watching charts every hour every day. I would have been finished earlier but missed the first one on USD/JPY as had to take a phone call.

Attention Attention!

in December (holiday month) USD is strong and expensive.

Took 2 trades till now, thanks to TK's advice I'm more disciplined and selective on taking trades.
AUDUSD
Some would say that I sold a retrace-ment as today's momentum is bullish but H1 is clearly bearish. With bearish bias in my mind I've waited all day for a short signal which finally came 30m ago.
5EMA broken by a nice HA without top wick, price under 200EMA, RSI coming from overbought territory

EURUSD similar trade same time entry, only that there I was a little bit worried as the set-up candle was quite small and looked like a doji. Nevertheless my 5p TP got filled

Same trade for me too. I held this one for 10 pips though.
Thats my 2 for the day and 5 from 5 hope it continues

hair cut.. Iam using a trade manager I found on FF several months ago ...it will move sl to BE and lock in 5 pips and close half of my lots and continue to the PT that you set with balance of lots without any risks. if any one is in need of this just search FF for ROKZ trade mgr and I will post my settings you must leave the trade coment blank for it to work...................PTdog.............. it has a stop loss that you can set.. it is a EA..

Hello Dave_C, I have been reading tk5 system it seems good one, I want to try and start working on this, I have few questions please could you give details to me If it is possible
1-are you referring settings you have shown in the #post 244?
2-could you give an indicators and template you are using along with EA

Thanks And Regards,
Moti

Hello Dave_C, first sorry for my English.

I'm testing your EA but my chart is different, why? I try it with settings in the #post 260 on EU 15M, time 1 year from today. Maybe can you help me?

After the trading of the last day, I have decided to change the EA slightly to allow for more discretion in the advisory and discretionary modes.

For those who are new to the thread, the EA has 3 modes

Trade0Alert1Both2 = 0 ........ this purely a trade mode and will place trades according to tk5's parameters (if you don't change anything)
Trade0Alert1Both2 = 1 ........ advisory mode only. Simply alerts you of a potential trade
Trade0Alert1Both2 = 2 ........ advises you but the trade is optional. If "Cancel" is pressed no trade takes place. If "OK" is pressed trade takes place.

The change that I have made is allowing more discretion with signals in the case of 1 & 2 above. ie. A signal is generated without regard to the Long EMA. As has been mentioned frequently in this thread, the appeal of this system is that it is a trade for 5 pips only but still has to be used with discretion. You may be up against S/R (as has happened during the last day particularly AUDUSD & NZDUSD) , pivot points or consolidation. You can still filter news releases and set trading times. I have reproduced the user settings explanations and enclosed a template for the standard settings and an updated EA.

In all cases you can change any of the below mentioned parameters to suit yourself but remember tk5 gave us the pre set parameters.

MAGICMA = 123450 ...................Each chart will need it's own unique MAGICMA
Trade0Alert1Both2 = 0 ...............Trades only, alerts only, or both
LotSize = 0 ...............................If you set your own lot size Money Management is overridden
MaximumRiskPercentage = 2 ......Only applicable if Lot Size = 0
ShortMA = 5 .............................Short Exponential Moving Average
Shift = 2 ..................................Shift value for Short Moving Average
MinBreakofSMA = 0 ...................The minimum pip movement of the body of the candle that crosses the ShortMA
MaxCandlesforResult = 0 ............Maximum number of candles before trade is closed regardless
LongMA = 200 ..........................Long Exponential Moving Average
RSICalcPeriods = 8 ....................Number of periods for RSI calculation
TopRSILevel = 70 ......................The top level that triggers RSI move from upper level signal
BottomRSILevel = 30 .................The bottom level that triggers RSI move from bottom level signal
ATRLookback = 5 ......................The number of periods looked back to determine Average Trading Range
MinATRPips = 5 .........................The Average Trading Range requirement as a minimum value in pips
PresetStopLoss = 0 ....................If left at 0 Stop Loss is automatically calculated from Low (High for short trades) of the candle on the opposite side of the Short MA
StopWin = 5 .............................Trades will be closed with this net pip gain.
TradingHoursStart = 0 ...............The start hour for trading (MT4 time not local time) - use 0 for 24 hour trading
TradingHoursEnd = 0 .................The end hour for opening of trades - nb. trades will be closed after this hour
NewsHour1 = 0
NewsMinute1 = 0
NewsHour2 = 0 .........................3 news trading times to be avoided can be input. Specify the hour and minute of the release. Leave at 0 if not required
NewsMinute2 = 0
NewsHour3 = 0
NewsMinute3 = 0
AvoidMinutesBeforeNews = 10 ....Common to the 3 news avoid periods
AvoidMinutesAfterNews = 30
Message = "Magic 5 Pips" ..........This comment plus the current pair will be added to the trade request. (this column in MT4 trades and history is hidden by default)

Thank you very much Dave_C for spending your precious time on me, and updating detailed information template and EA to start it with work done.

I am obliged to you for you fascinating reply, I will start working on this system day after tomorrow and will update the progresses next week I am a new in the Forex it is being bit hard to understand for me, your help has been very significant for me.

With Regards,
Moti

You have optimized additional settings, the end date is later (I used 2014/12/05) and have used the spread of your own broker. I did the optimization with 2 pip fixed spreads. Your own broker may also have a different price feed. Also remember, genetic optimization is selected by default (refer to the "testing" tab on the EA properties), so with different parameters the pathway may be quite different. For really accurate back testing you need to use tick data. This optimization is just an example of what can be done.

I have reproduced the settings I optimized below.

Regards
Dave

whats up guys

I have been busy these days.

I thought this: you can upload your bad trades here...I will comment on each particular case as can.

this way I believe would help to cement traders discipline.

2 for this morning. Happy days.

Haircut,

I was looking at that EU trade as well but didn't take it as the RSI was still up in the overbought territory. Congrats for your trades

Can you post the info please mate

Hi TK5,

Quick question. If current candle closes green, could I consider going long at the beginning of next candle?

The only thing that keeps me not entering the trade is bearish momentum.
The positive points are, PA stopped on the 200EMA(H1 chart) and DS1, RSI coming from 30 area