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Simple RSI & EMA high Profitable ratio Strategy

  • #21
  • Jul 17, 2016 3:39am Jul 17, 2016 3:39am
Quoting emmanuel7788
Hi, Just completed a manual back-test .......Have a Good Weekend ... with back-testing.
Hi emmanuel7788, good results, thnx for sharing, i like the simplicity of this method. I'll check this on demo and will wait for your results/analysis likewise.
Regards
Winners Never Quit, Quitters Never Win
  • #22
  • Jul 17, 2016 4:16am Jul 17, 2016 4:16am
Quoting hsn100
{quote} Hi emmanuel7788, good results, thnx for sharing, i like the simplicity of this method. I'll check this on demo and will wait for your results/analysis likewise. Regards

Hi,

I like simple trading methods. They all work only provided we as traders knows when to trade and when not to trade. We must know when to place our entries and exits, and we must have the discipline to follow simple rules and not get distracted by things around us especially discussions in forums like FF. We must learn to stay focus in doing the trading tasks every day no matter what the surrounding environment we are in.

Here is another back-test for EURUSD H4, same period from June 24 (post Brexit) till Jul 16.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD RSI 21 L50 Buy Sell.png Size: 86 KB


Looking at EURUSD RSI(21) on W1, D1 and H4, we should be selling next week. But what is the money management strategy we should use?

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD Week 29 Triple Screen RSI_21.png Size: 50 KB


Good trading next week...
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #23
  • Jul 17, 2016 5:29am Jul 17, 2016 5:29am
Quoting emmanuel7788
{quote} Hi, I like simple trading methods. They all work only provided we as traders knows when to trade and when not to trade. We must know when to place our entries and exits, and we must have the discipline to follow simple rules and not get distracted by things around us especially discussions in forums like FF. We must learn to stay focus in doing the trading tasks every day no matter what the surrounding environment we are in. Here is another back-test for EURUSD H4, same period from June 24 (post Brexit) till Jul 16. {image} Looking at EURUSD...
Good Luck emmanuel7788
  • #24
  • Jul 17, 2016 6:43am Jul 17, 2016 6:43am
Hi ahmedabbas,
Thanks for your share of your profitable strategy.
But it seemed I didn't understand your strategy because according to my backtest, the strategy didn't show a very positive result.(Pic 1)
(enter and close long/short according to RSI and EMAs just like what you said and don't set a SL)
Even if I set an original stoploss of 100 Point and Move SL to OpenPrice when profit>100 points, it didn't work like others.(Pic 2)

So how did you get that curve by your strategy? What kind of SL and TP strategy do you use?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1.jpg Size: 77 KB
Click to Enlarge Name: 2.jpg Size: 59 KB
  • #25
  • Jul 17, 2016 6:57am Jul 17, 2016 6:57am
Thanks Ahmed Abbas for this thread and Emmanuel7788 for the useful pdf-link.
I’m new on this forum and didn’t find posted answers on my below question yet.

It is often said that crossing MA’s–ONLY won’t result in a winning system.
You’ll need more pattern recognition or indicators, for instance the proposed RSI.

I’m certain that crossing MA’s will work if the system is able to recognize the unprofitable trades.
Then MA crossing and many other systems become profitable.
The NON-Entry warning is even more important than the Entry signal.

See for instance the attached graph;



Values below suffixed with “?” are suggestions and shoule be tested.

At the current completed bar[1] look back (10-11?) bars if there was a crossing, which may fall between 2 bars, therefore around bars 10 and 11
Measure the angle of both MA’s from several bars (5?) after the crossing till the current bar[1].
If there is another crossing in this (10-11?) bar-period, skip and wait till the system sees this next crossing.

Use for instance a LRL and its Slope-Angle, not on the bars but on the MA’s.
A LRL is a strait linear regression line between 2 points only in stead of a moving and curved regression like a MA.

If both slope values differ more than (?) degrees the price very often falls back and results in a lozing trade.If less than (?) degrees this is an incomplete entry signal, see point 4 below.

- Point 1 is a NonEntry.
- The first crossing of point 2 is skipped because of the next crossing in the (10-11?) period.
- Point 3 could be a doubtful Entry and may result in a loss.
- Point 4 could be an Entry signal, but the barsize (H-L) around the crossing is quite large and 2 extra LRL’s from crossing till 5 bars next confirm this and overrule the standard Entry signal, based on parallel LRL’s.
- Point 5 is where we waited for. Almost parallel LRL’s -and- slope values must confirm trend.- No slope confirmation at point 6, even mostly no (10-11?) bars lookback.

I’m working this out, but do not have the complete and tested indicator version yet to upload. I expect coming soon.
See attached an incomplete MT4 testversion for LRL which is drawn several times and not calculated on the MA’s

Above was a suggestion for finding NonEntry signals, please think also about how to recognize and avoid lozing trades.

Cheers, cdeleeuw
Attached Image (click to enlarge)
Click to Enlarge Name: reaction-1.gif Size: 30 KB
Attached File(s)
File Type: mq4 #-Linear-Regression-Line1-CW.mq4   8 KB | 1,019 downloads
  • #26
  • Jul 17, 2016 7:16am Jul 17, 2016 7:16am
Quoting ahmedabbas
Time frame : H1 , H4 In this Strategy , we use 3 indicators: 5-period Exponential Moving Average (EMA 5) applied to the Close. 12-period Exponential Moving Average (EMA 12) applied to the Close. 21-period RSI (RSI 21) Entry Rules for Long Trades: Its simple. We enter a long trade when EMA 5 crosses above EMA 12 to the upside AND our RSI 21 > 50. Entry Rules for Short Trades: Enter short when EMA 5 crosses EMA 12 to the downside. AND RSI 21 < 50. SL/TP as you perceive feasible according to market/Pairs Stop loss = between Approximately 35-60 or more/less...
You got this strategy from an ebook by Thomas Carter https://www.amazon.com/gp/aw/d/15033...1VL&ref=plSrch
I recommend always back testing a strategy, especially from low budget ebook said sold on Amazon because anyone can write and sell an ebook nowadays.
  • #27
  • Jul 17, 2016 7:37am Jul 17, 2016 7:37am
this is a solid strategy but rsi have some tricks.
You also will want to check Bagovino s (here) and Teb63 s (here) threads for many invaluable information, but for some reason, they abandoned the method.
Humble & Kalcker CLO2 = Covid killer
  • #28
  • Jul 17, 2016 7:55am Jul 17, 2016 7:55am
in my long experience with this method might suggest soften rsi activity incorporating an MA, please analize the template.
Attached File(s)
File Type: tpl emas and rsi smoothed.tpl   2 KB | 1,244 downloads
Humble & Kalcker CLO2 = Covid killer
  • #29
  • Jul 17, 2016 12:05pm Jul 17, 2016 12:05pm
Quoting jusiur
this is a solid strategy but rsi have some tricks. You also will want to check Bagovino s (here) and Teb63 s (here) threads for many invaluable information, but for some reason, they abandoned the method.
Right Jusiur , it's evident that ahmedabbas has copied the Bagovino Method.
  • #30
  • Jul 17, 2016 12:21pm Jul 17, 2016 12:21pm
Quoting redoktober
{quote} Right Jusiur , it's evident that ahmedabbas has copied the Bagovino Method.

never , i have seen your mentioned before or copied , there lot of strategies which concepts relates , but i have using this strategy with some indicators which i have mentioned in my posts.
  • #31
  • Edited Jul 18, 2016 7:43am Jul 17, 2016 5:22pm | Edited Jul 18, 2016 7:43am
I use to use this system as my main system. it works fine. May I add a few things I found out that worked for me
,,,,,, ie. In an uptrend
1. Only open a trade from the london open to 2 hours before the London close
2. Enter with a candle pattern after a cross of the RSI and the MAs to the upside
3. Put a stop below the last main swing
4. do 1 to 3 RRR
5. Only enter a trade to the upside the 1st or 2nd times after a cross of the RSI over the 50% level
6. Make sure the RSI is not moving fast to the downward - even if the RSI is over the 50%
7. if you are trading on the hour chart check to confirm the 4 hour RSI is in line. Maybe even check the day chart.
8. The best candle entries. for. me were _ pin candle _ inside candle_outside candle _ best is key bar

good luck
  • #32
  • Jul 17, 2016 8:54pm Jul 17, 2016 8:54pm
Quoting TEB63
I use to use this system as my main system. it works fine. but may I add a few things I found out 1. only open a trade. in the london open to 2 hours before the close 2. you need to have a candle enty after the cross 3. put a stop below or above a swing 4. do 1 to 3 rrrr 5. only take a trade 1 or 2 times after a cross of the rsi 6. make sure the rsi is not moving fast the wrong way even if over the 50% 7. f you are trading on the hour make sure you have the rsi on at least the 4 hour is in line. may even want the day 8. best candle entry. for. me...
Thank TEB63 for your nice suggestions
  • #33
  • Jul 18, 2016 1:06am Jul 18, 2016 1:06am
Quoting Bardy
{quote} You got this strategy from an ebook by Thomas Carter https://www.amazon.com/gp/aw/d/15033...1VL&ref=plSrch I recommend always back testing a strategy, especially from low budget ebook said sold on Amazon because anyone can write and sell an ebook nowadays.
And he got it from one of our members here, TEB63 who posted it years before this book.
http://www.forexfactory.com/showthread.php?t=229238
  • #34
  • Jul 18, 2016 7:18am Jul 18, 2016 7:18am
Quoting TEB63
I use to use this system as my main system. it works fine. but may I add a few things I found out that worked for me ,,,,,, In an uptrend 1. Only open a trade from the london open to 2 hours before the London close 2. Enter with a candle pattern after the cross of the RSI and the MAs to the upside 3. Put a stop below the last main swing 4. do 1 to 3 RRR 5. only take a trade to the upside the 1st or 2nd times after a cross of the RSI over the 50% level 6. make sure the RSI is not moving fast the downward even if the RSI is over the 50% 7. if you...
kindly explain your points with examples please
  • #35
  • Jul 18, 2016 7:44am Jul 18, 2016 7:44am
Quoting alyssum
{quote} kindly explain your points with examples please


Sorry kind of doing another system now.

If you have a question I might have an answers

cheers
  • #36
  • Jul 18, 2016 8:56am Jul 18, 2016 8:56am
Quoting emmanuel7788
{quote} Hi, I like simple trading methods. They all work only provided we as traders knows when to trade and when not to trade. We must know when to place our entries and exits, and we must have the discipline to follow simple rules and not get distracted by things around us especially discussions in forums like FF. We must learn to stay focus in doing the trading tasks every day no matter what the surrounding environment we are in. Here is another back-test for EURUSD H4, same period from June 24 (post Brexit) till Jul 16. {image} Looking at EURUSD...
​Hi Emmanuel,

Thanks for sharing back teste results what is the difference in both testing. sorry I was not able to understand .
What is the Target Profit / SL or close criteria in 2nd testing

Thanks
  • #37
  • Jul 18, 2016 8:57am Jul 18, 2016 8:57am
Hi guys, do you wait the close of the candle to enter trades?
  • #38
  • Jul 18, 2016 9:03am Jul 18, 2016 9:03am
Quoting lucariga
Hi guys, do you wait the close of the candle to enter trades?
I do.
  • #39
  • Jul 18, 2016 12:18pm Jul 18, 2016 12:18pm
Quoting lucariga
Hi guys, do you wait the close of the candle to enter trades?
yes off course
  • #40
  • Jul 18, 2016 3:44pm Jul 18, 2016 3:44pm
Quoting emmanuel7788
{quote} Hi, I like simple trading methods. They all work only provided we as traders knows when to trade and when not to trade. We must know when to place our entries and exits, and we must have the discipline to follow simple rules and not get distracted by things around us especially discussions in forums like FF. We must learn to stay focus in doing the trading tasks every day no matter what the surrounding environment we are in. Here is another back-test for EURUSD H4, same period from June 24 (post Brexit) till Jul 16. {image} Looking at EURUSD...
emmanuel how do you avoid fake signals??

Lot of fake signals look closer:

Attached Image (click to enlarge)
Click to Enlarge Name: lot of fake signals.png Size: 69 KB
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