I would like to share a system that I have been developing the last few weeks. Been doing some manual backtest and so far is looking pretty good.
RULES FOR POSTING ON THIS THREAD (must read beore posting)
– Don´t add any new indicator.
– Any chart you want to post do it using my template.
– No negative and bad behavior.
– No discussing about an EA
– Not following the rules will result on a BAN.
Let´s enjoy and have fun! I don´t have any interest in selling system or signals.
Indicators: We use 02 simple moving averages for entering, and ATR (14) period for profit taking.
BUY SIGNAL: We wait for the 50SMA close above the 200SMA. We don´t take the trade right away because that will lead to whispaws and losing money. We have to wait for a confirmation that the trend is strong and going up. The way to do that is by looking at 3 things:
– 50SMA pointing up at least in a 45 degree angle
– 50 SMA separating from the 200SMA. You should have at least 5-7 candles of constant separation movement after the moving averages cross.
– Price above the 50SMA
* The opposite for SELL TRADES.
Here is an example. 50sma crossed up the 200sma. After the cross you have at least 5-7 candles when the lines keep separating. And also the angle of 50sma looking very good.
Take profit: 1.5 times the ATR. I have been experimenting with different setups, and you can go from 1 to 2 times the ATR. It depends on your trading style.
Stop loss: I recommend 3 times the ATR or a support or resistance point such as 50 or 200sma
It works on any timeframe.and on any pair. I will be trading it using the 4h chart, beacuse it gives very good and realiable signals and I don´t want to spend all day in front of my computer. I am opening a demo account with USD 1,000 to test this strategy and will be using 0.03 lot size. Will share TradeExplorer as soon as I have it, in case you wanna follow my progress.
At the moment I am looking at CADCHF, looking good. If moving average keeps separating I will probably enter a position. Let´s see how it performs in the next couple of hours:
FEEL FREE TO ASK ANY QUESTIONS!!
Another example, this time for a SELL SIGNAL