Simple 5 / 8 moving average crossover

Here are the instructions for the CutePDF. Just in case you need it in the future.

Thanks for your trading journal template.

​I have not uploaded my custom indicators, only the details of how such a system works. Someone else is sharing such an indicator and someone is having one coded for free. I have no plan to upload the actual tool because I am then obligated to follow through indefinitely on it use, as well as get negative remarks from those who cannot make it work. I am glad to exchange knowledge and experiences but not the actual indicators.

Nice Thread, Keep it original and keep trading.

Hi,
By following the thread "trend catching with NonLagDot indicator" it seems to that the NonLagDot indicator can replace the two moving averages 5 and 8.
It's more readable.

If "non lag dot" works best for you, clearly that is what you should use. It looks like a blend of an MA with the SAR indicator, an experimental search for something new.

When I discussed 5/8, I made it clear that it was a feature of a system, not the system itself. There are other factors that need to be considered. For me, the method that incorporates the 5/8 as well as MA50 and MA200, along with stochastic and MACD confirmation is working well and I think that I will stick to it. After all, it produces a lot of positive pips and, once in a long while, a few negative ones due to non observation of the ground rules. But since I use no S/Ls, the negative pips are my choice to close a trade that seems bad.

Interesting. Thank You. Also can you or anyone else please tell me what setting to use for the 5 / 8 Moving AVGS I:E Set to Close Open High LOW.

fxdare,

I used to think that it makes a lot of difference if you use "ema versus sma", "open versus close", and such. It does not! I have realized that success comes from accurately identifying the trend that the market movers have established, in the moment, and then trading with them. Those market movers are the big banks, the hedge funds, insurance companies, governments, the super rich like Soros, Buffet, Icahn, the Koch brothers and such. If you can identify the trend and go with it, you will make money in spite of yourself, just like a river will pull you downstream no matter what way you thrash in the water. But identifying the trend correctly and getting in at the right time is what most of us spend years trying to discover. Along the way you will be distracted by a lot of self appointed gurus and experts who believe that they have found the perfect system that they will gladly sell to you for a few hundred or thousand dollars. After you have followed a few of those pied pipers and have lost a lot of money, you may finally understand how the market works and start to make some small profits, at first, and greater ones if you stick with it. So keep studying the charts and noticing repeating patterns. Then take advantage of those patterns with small orders, correcting your mistakes along the way. Don't flip flop among different methods that different people will dangle before you. Think it out logically.

I Agree with you, However I have been following this thread for a short time and decided to investigate the integrity of this system and the claims being made here. I implemented the indicators provided and used a 8 / 21 MA cross. So far my trading log is showing a significant improvement on my personal P&L. Now i would like to try this system on the Daily charts using the originally intended settings. Thats why i want to find the M/A applied to ? Ill attach a screen shot of my charts so you can see i do not use many indicators. With that said i REALY like NOT having the M/A S on the chats at all. The small arrows drawn by these indicators are very accurate and much cleaner. I have never traded on the Daily charts with any consistency nor have i honestly given it a fair shot. This looks good. I have made a commitment to myself not to Style drift a long time ago. If there is no answer to my original question then i will not do it. With that said my intention is to try this for a while and if things go well I will open a live account dedicated to trading ONLY the daily T/Fs.

The second screen shot is what I may implement for the Daily T/Fs. It's working fine on the 5Min and 15 Min. Thus far. My Time frame of choice is the 1Hrs with 15M Entry. I trade EUR / AUD and GBP / JPY 90% of the time. Its not show and tell as it seems by looking at the charts. NOT a holy grail. In fact I'm 55 / 45 at best. My Strength is in my Money management. I have been a member at FF Factory since 2010 and have posted 11 times or so. I have learned to weed out HYPE. This thread is good IMO. I appreciate the efforts and will post my findings in the future. I suggest to all of you not to give up on this and implement Discipline. Ive found that the best thing that can happen to a trader is a Loosing trade. Every trade anyone takes is what they believe will be a winning trade, But fact is its a 50 / 50 ZERO SUM game. Thats translates to we must put the odds in our favor. turn it into a 55 / 45 …. 60 / 40 even 50 / 50 is good with proper Money Management. In fact 50/50 can be GREAT. EVEN 45 / 55 or less can make you Money.

for my trading experience, the price action trade is enough at all..

Those are interesting pictures, and it would seem that you get good entry and exit points from them, although there probably is more to know about the system. Where did you come across this? Or, more to the point, what platform are you using to get such color differentiation in the MACD?

It's a Standard MT4 Platform. I work with a 27in. I Mac P.C, Likely it's the P.C. giving the sharp contrast. This is my Normal Chart. The one I use everyday. Nothing Special. The Background colors are an indicator I had Programed for me by a professional Coder. The background color change represents a few indicators I like as a background color, Nothing really special. Price action " Divergence " was what most interested me on this chart. I follow price action and implement STRICT money Management. This thread and what is being discussed sparked my interest in trading the Daily Time frames. I do not want to change anything, just add the 5/8 properly on my Daily charts and test it out.

In the snap shot you may not be able to see the background very well, The darker spots are dark red and the lighter spots are dark green. In any case I mostly do not pay attention to it. I have to remember they are there and then I focus in on it, It's not critical to my trading. Im taking them out. It was a good idea at the time, was super hyped about getting it and now Its junk. LOL. Im sure most of you guys have been there and done that. Im over it.

Can you please expand a little bit on your Strict money management. Thanks

Here is an excellent example of what happens when you don't follow the strategy, switch to shorter time frame(M1), get impulsive and let your ego determine what is the trend instead following the MA's system. Do not try at home. LOL

PS Any advice on how to stick to the rules will be appreciate it.

This is only a suggestion, Lets say you are looking at a potential trade. All the entry rules are checked off and it is a Go, now you need to figure out where
The Stop Loss is going, ( should be part of the rules ) Say you risk 2% of your account Balance on any given trade and this trade requires a stop loss that would be at
4% risk. I would simply Cut my Lot size in 1/2. Or NOT TAKE THE TRADE AT ALL. Now hypothetically lets say the trade is going well, I like to take 50% off when Its
50% closer to My target and reduce my stop on the remaining 50% to +2% Profit Then If I am at the trading terminal and I see my trade is at 75 / 80% + to target
I take another 1/3 off and remove my T/P then move my stop on the remainder of the trade to 50% profit and let the remaining 1/3 run. Now I manually trail the trade
Until the stop is Hit. Its very hard to let a trade work. In my opinion in order to improve ones discipline one should let the trade work over time not take it out when it is
going against you. Let the stop do its job. One of my biggest mistakes was not letting the strategy prove itself worthy by letting the entire trade do what i
THOUGHT it should do. I haven't found a better way other than to follow the plan to the letter. That includes accepting the loss with as much gratitude as the win.
There is no difference between the two. 50 / 50 Zero sum game. Ive also come to value my losses pretty much more than any other trades. Ive come to realize
That reviewing the losses has been invaluable. If we log nothing at all I suggest to log and review the lost trades. I always look to see if I missed any of the rules, if not the trade was a good trade.

Thank you. I appreciate your answer.

Well, have been trading this strategy since 2015-11-18 with 0.2 lots on real account with 7 pairs and doubled the money.
Initial amount 480 usd and now worth around 945 usd. Earlier this day account was around 1016 usd.

Sometimes it's very choppy like eurusd right now but when we got a trend the account increase in value like gbpjpy.

The small losses we will always have if no trend.

I have ema 5 close, ema 8 open lines, no more indicator.
Sometimes i trade more lots on pullback.

I've noticed that you use daily charts. How long do you hold your trades for?