Advanced system #3 (Neat entry: RSI + Full Stochastic)
Submitted by Edward Revy on May 13, 2007 - 15:40.
Current strategy has won the hearts of many Forex traders. And why not when it has a great winning potential.
Strategy requirements/setup:
Time frame: daily
Currency pair: any
Trading setup: SMA 150,
RSI (3) with horizontal lines at 80 and 20,
Full Stochastic (6, 3, 3) with horizontal lines at 70 and 30.
Trading rules:
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Great Strategies. Thanks for sharing. I can't wait to start using them.
Hi, Edward,Congratulation for this site.
I have a question, what happend when the price and 150 SMA are very close ?
The direction to trade, may change several times in a short time, and have a false signals. Do you have a minimal range between 150 SMA and the price ?
Thank you very much.
Dave.
thumps up here also reference may 17 07. I'm real new, 30 days cruising the net for forex, anybody got my 1st step and next step advice? this is the best site i've found for raw info thanks. pigeon
Thanks everyone!
Dave, I understand your point. However, I don't implement any limitations regarding the distance from 150 SMA.
Regards,
Edward
Hello, am I right to say that we have a short signal on gbp/usd right now ? If yes I would like to know where you would place your stop loss because it seems to me that the last swing high is too far (1.6672).
Thanks for posting your system.
Yes, you are right, that's a signal to sell.
The stop should be placed around 1.5540.
Regards,
Edward
Thank you. That one went pretty good ! Already 450 pips and it's not over yet.
Dear Edward,
Thanks for this great website.
I have been paper trading this strategy on various currency pairs for some weeks now. The problem I am facing is to find the best Exit.
E.g.: We are in a long trade and Stochastic hits above 70. If I sell immediately I might sell to early. So I tried to wait for a stochastic cross above 70 in order to see whether the trend continues. The problem here is that one bad day can take all the profit you have made so far.
The same problem occurs if we put a trailing stop below the previous candle's low.
Do you have any idea of avoiding too early exits?
Second thing is the initial stop loss after we have entered a trade. Sometimes the last high/low is far away. Have you tried setting a stop loss with a distance of the Average True Range or something similar?
I hope it is clear what I mean.
Thank you once again.
Jo