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Simple, Profitable, forex strategy

  • #1
  • First Post: Edited 4:25pm Jul 19, 2015 2:51pm | Edited 4:25pm
I think there is no more simple strategy than this one
Experience traders also share their opinion about this ....and newbie try to demo it......
Enter:
For Sell
1) Only if a sell candle comes After buy candle...
2) RSI at 70 or above
3) STOCH at 80 or above...
For Buy
1) Only if a Buy candle comes after sell candle...
2) RSI at 30 or below
3) STOCH at 20 or below...
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h1-instaforex-group-5.png Size: 40 KB
  • #2
  • Jul 19, 2015 3:22pm Jul 19, 2015 3:22pm
Quoting our4link
I think there is no more simple strategy than this one Experience traders also share their opinion about this ....and newbie try to demo it...... Enter: For buy 1) Only if a sell candle comes... 2) RSI at 70 or above 3) STOCH at 80 or above... For Sell 1) Only if a Buy candle comes... 2) RSI at 30 or above 3) STOCH at 20 or above... {image}
Man, check Your rules because with these writen by You, every candle that i marked and many many others in Your pic does follow Your rules.
Am i right?
Attached Image (click to enlarge)
Click to Enlarge Name: attachment1.png Size: 42 KB
  • #3
  • Jul 19, 2015 3:35pm Jul 19, 2015 3:35pm
Quoting laksior
{quote} Man, check Your rules because with these writen by You, every candle that i marked and many many others in Your pic does follow Your rules. Am i right? {image}
Buddy as i said only place your trade when three condition meet.......
For buy
1) Only if a sell candle comes...
2) RSI at 70 or above
3) STOCH at 80 or above...
Three conditon must match each other.....
For Sell
1) Only if a Buy candle comes...
2) RSI at 30 or above
3) STOCH at 20 or above...
Three conditon must match each other.....
  • #4
  • Jul 19, 2015 4:08pm Jul 19, 2015 4:08pm
Quoting our4link
{quote} Buddy as i said only place your trade when three condition meet.......
I assume that the OP means this:

For Sell
1) Only on a bull candle
2) RSI at 70 or above
3) STOCH at 80 or above

For Buy
1) Only on a bear candle
2) RSI at 30 or below
3) STOCH at 20 or below

When sharing information, it is important to be precise. For example, there is no mention of time frame (TF), nor of periods for the two included indicators.
  • #5
  • Jul 19, 2015 4:10pm Jul 19, 2015 4:10pm
Quoting our4link
I think there is no more simple strategy than this one Experience traders also share their opinion about this ....and newbie try to demo it...... Enter: For buy 1) Only if a sell candle comes... 2) RSI at 70 or above 3) STOCH at 80 or above... For Sell 1) Only if a Buy candle comes... 2) RSI at 30 or above 3) STOCH at 20 or above... {image}
I will make a ea soon. do you recommend a specific time frame? i think it wont work in my opinion.
and second, at the picture you mention 'sell' when rsi is above 70 and stoch above 80 but at your rules you write down the opposite.

i'm sorry for my english,

Trading kid
quality comes before quantity
  • #6
  • Jul 19, 2015 4:26pm Jul 19, 2015 4:26pm
Quoting trading-kid
{quote} I will make a ea soon. do you recommend a specific time frame? i think it wont work in my opinion. and second, at the picture you mention 'sell' when rsi is above 70 and stoch above 80 but at your rules you write down the opposite. i'm sorry for my english, Trading kid
Sorry for that mistake ...
i have solve mistake and these info is right....
Enter:
For Sell
1) Only if a sell candle comes After buy candle...
2) RSI at 70 or above
3) STOCH at 80 or above...
For Buy
1) Only if a Buy candle comes after sell candle...
2) RSI at 30 or below
3) STOCH at 20 or below...

If you create EA on this strategy then must share with me...
  • #7
  • Jul 19, 2015 4:29pm Jul 19, 2015 4:29pm
Quoting Tavurth
{quote} I assume that the OP means this: For Sell 1) Only on a bull candle 2) RSI at 70 or above 3) STOCH at 80 or above For Buy 1) Only on a bear candle 2) RSI at 30 or below 3) STOCH at 20 or below When sharing information, it is important to be precise. For example, there is no mention of time frame (TF), nor of periods for the two included indicators.
I think you should check pic i have attached.......
I did not use very special indicator these are very simple and well known indicator and i attach pic so you people check easily which indicator i use....
  • #8
  • Jul 19, 2015 4:40pm Jul 19, 2015 4:40pm
Quoting our4link
{quote} Sorry for that mistake ... i have solve mistake and these info is right.... Enter: For Sell 1) Only if a sell candle comes After buy candle... 2) RSI at 70 or above 3) STOCH at 80 or above... For Buy 1) Only if a Buy candle comes after sell candle... 2) RSI at 30 or below 3) STOCH at 20 or below... If you create EA on this strategy then must share with me...
below the result of the strategy, 1h timeframe sl 20 pips tp 40 pips on eurusd.
as i said before i dont think this will work. because all these indicators are lagging and big players dont use them to enter a trade.
Attached Image (click to enlarge)
Click to Enlarge Name: strategy tester.jpg Size: 173 KB


Attached File(s)
File Type: ex4 our4link.ex4   214 KB | 430 downloads


good luck anyway,

trading kid
quality comes before quantity
  • #9
  • Jul 19, 2015 4:41pm Jul 19, 2015 4:41pm
Quoting trading-kid
{quote} below the result of the strategy, 1h timeframe sl 20 pips tp 40 pips on eurusd. as i said before i dont think this will work. because all these indicators are lagging and big players dont use them to enter a trade. {image} {file} good luck anyway, trading kid
You should use it on H4
tp: 20 pips
sl: 20 pips
  • #10
  • Jul 19, 2015 4:47pm Jul 19, 2015 4:47pm
Quoting trading-kid
{quote} below the result of the strategy, 1h timeframe sl 20 pips tp 40 pips on eurusd. as i said before i dont think this will work. because all these indicators are lagging and big players dont use them to enter a trade. {image} {file} good luck anyway, trading kid
And By the way...i dont think this strategy will work on EA
Because our trade start after candle change trend (change buy to sell or sell to buy) and other conditions match........and close trade only if candle change trend (change buy to sell or sell to buy)
So it can observe only human by him/her eyes..........not an EA
  • #11
  • Jul 19, 2015 4:58pm Jul 19, 2015 4:58pm
Quoting our4link
{quote} And By the way...i dont think this strategy will work on EA Because our trade start after candle change trend (change buy to sell or sell to buy) and other conditions match........and close trade only if candle change trend (change buy to sell or sell to buy) So it can observe only human by him/her eyes..........not an EA
attempt 2:

Attached Image (click to enlarge)
Click to Enlarge Name: strategy tester.jpg Size: 166 KB
Attached File(s)
File Type: ex4 our4link(2).ex4   214 KB | 389 downloads
quality comes before quantity
  • #12
  • Jul 19, 2015 4:59pm Jul 19, 2015 4:59pm
Quoting trading-kid
{quote} attempt 2: {image}{file}
By the way...i dont think this strategy will work on EA
Because our trade start after candle change trend (change buy to sell or sell to buy) and other conditions match........and close trade only if candle change trend (change buy to sell or sell to buy)
So it can observe only human by him/her eyes..........not an EA
  • #13
  • Jul 19, 2015 5:03pm Jul 19, 2015 5:03pm
Quoting trading-kid
{quote} attempt 2: {image}{file}
Dear Trading-kid,

can you please try it on LTF say MI, M5, M15???


Thanks,

Nerry
  • #14
  • Jul 19, 2015 5:07pm Jul 19, 2015 5:07pm
Quoting our4link
{quote} And By the way...i dont think this strategy will work on EA Because our trade start after candle change trend (change buy to sell or sell to buy) and other conditions match........and close trade only if candle change trend (change buy to sell or sell to buy) So it can observe only human by him/her eyes..........not an EA
at the title is write down ''profitble'' do you have results?

greetings,
quality comes before quantity
  • #15
  • Jul 19, 2015 5:09pm Jul 19, 2015 5:09pm
Believe me , these indicators wont work
  • #16
  • Jul 19, 2015 5:10pm Jul 19, 2015 5:10pm
Quoting trading-kid
{quote} at the title is write down ''profitble'' do you have results? greetings,
Yes i back test it on EURUSD and out 100 trade 82 was profitable.......
You should back-test this strategy then you will see how many it is profitable.
  • #17
  • Jul 19, 2015 5:11pm Jul 19, 2015 5:11pm
Quoting NerryP
{quote} Dear Trading-kid, can you please try it on LTF say MI, M5, M15??? Thanks, Nerry
dear nerry, try to load .ex4 at the strategy tester on your mt4. sure, the sl and tp insnt right at small time frames.
in my opinion this strategy is never gonna work.

greetings trading kid
quality comes before quantity
  • #18
  • Jul 19, 2015 5:13pm Jul 19, 2015 5:13pm
Wont work. Momentum takes shape as multiple candles in a row. Basically you will try to countertrade momentum.... rsi and stoch can be above mentioned values for quite some time before turning down/up below/above again.
  • #19
  • Jul 20, 2015 5:49am Jul 20, 2015 5:49am
Quoting trading-kid
{quote} attempt 2: {image}{file}
Nice work TK, thanks for keeping it scientific
  • #20
  • Jul 20, 2015 4:53pm Jul 20, 2015 4:53pm
Quoting our4link
You should back-test this strategy

There's really no need to.

It can be seen at a glance why it can't overall be profitable, and many posters above have tried, in various ways, to explain the underlying reason: you're trying to countertrade momentum.

In clear trends, you'll be entering countertrend trades at the close of the first correction/retracement candle, simply because your stochastic and RSI indicators are in their so-called "overbought"/"oversold" areas. The reality is that they can occupy those areas for a long time, during trending markets.

Imagine it as a car on the freeway: you're confusing speed with acceleration, and inferring (for example) that when there's been a period of recent acceleration, the speed must reduce very soon because no car can accelerate for ever. You're missing the point that acceleration can decline without speed declining. The speed will, doubtless, decline at some future point, but there's absolutely no reason to imagine that it's going to be any time soon after you enter your trade (and noticeable reasons to expect the opposite, if anything).

If you have 5-10 rising candles, followed by a slight retracement (falling candle), your stochastic and RSI parameters will be fulfilled more or less by definition, because of the effect on those indicators of the price-movements during the run-up to your signal candle, but that hardly makes it a time for a short entry into the market, does it?

The indicators are formed by the (previous) prices, not vice-versa.

Respectfully, if you think about how your indicators work and what they're actually telling you, you'll readily appreciate why this idea can't be profitable in the long term.
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