Advanced system #3 (Neat entry: RSI + Full Stochastic)

Hellow Mr.Edward,

I am thankful to you for sharing such a great but simpel strategy.I am new to forex trading. I have back tested the method on last six month chart pattern of major currency pairs and the result is amazing. I have done four live trading based on this method making huge pips recently. But, when I was going through the full thread, I came accross page 15 where you have described about 9 EMA method to enter the trade. Please refer the attached chart where I have marked all the point to enter short on EUR/AUD and it worked. But tell me one thing, if I would have enter after the candle closed below 9 EMA, and then again the price have gone above 9 EMA, is it a signal to exit our position? Please correct me if I am wrong. On the other hand it seems to be a great opportuninty as the price have retraced again to a new high.

Again, thanks a lot for the best work.

Best Regards,
SB

Thanks for sharing the strategy Edward!

I did some preliminary simulation of this strat. Please note that I just programmed this last night and it might be inaccurate!

Interval: 1 day
Stop Loss: local minimum or maximum for the last 10 candles
Take Profit: slowD or slowK crosses 70 for long or 30 for short

Results: 60.6 % success rate.

Attached is the results.
AdvancedStrategySimulation.xlsx

On 1 hour charts you'll have different results, possibly more false signals, but this shouldn't stop you from trying.

Regards,
Edward

interesting but unfortunately it is meant for a daily chart. can i apply to an hour chart??? if not, can u suggest a strategy for an hour chart as I do not have enough funds to go for the daily chart? appreciate you help.

Can i use it in hourly chart?

Hi Aku11a,

I like the changes made by Haydel (all 4 of them), he added consistency & structure to the most slippery aspects of the strategy.

I think you could incorporate it along with your advanced "human intelligence" approach.

Kind regards,
Edward

Edward, I was just wondering if you agree with all the changes Haydel made to make -his- EA work with -your- system? Do you agree with everything he is doing, I tend to believe that humans have an 'instinct' that can see data differently than machines, so the trick is to make the machines see the data the same way (I'm an artificial intelligence programmer, by the way)

Anyway, if you don't agree with some of Haydel's ways, let me know because I would like to give some "human intelligence" to his EA, so it is an "Edward-clone", basically make it act -exactly- like you do, emotions and all...

Best regards,
Aku11a

Full Stochastic = Slow Stochastic.

The Setup on August 13 was good, I remember I also waited for Stochastic to finally cross and took a position on August 17. But, to my disappointment the price went down (although not without a fight), and I accepted a loss (close to 100 pips).

Well, recently the pair seems to be slowly recovering, but with our current system there are no signals to work with.

Kind regards,
Edward

Cosa significa "full stochastic e come si calcola? grazie.

Trader Di Carlo Dario

I’m looking at the GBP/USD chart today (Friday August 13, 2010) and I think that there is a good change to enter long very soon and profit. I do not know what fundamental analysis has to say, but I think that technical analysis is showing a great wining potential.

GBP/USD Chart:

The signals for the Advanced system #3 (Neat entry: RSI + Full Stochastic) are almost there and combining this strategy with Advanced strategy #10 (Trend Line Trading Strategy) gives a very good chance of wining.

Take a look at the chart, the up-trend line corresponds to the rules of Advanced strategy #10 the rest of the indicators corresponds to Advanced system #3.

We will see what happens on Monday August 16, 2010.

Please let me know what you think.

Best regards,

Haydel

I've looked at a few major pairs on the H4 timeframe for this strategy, and my conclusion is that it does not work. The vast majority of trades are losing using H4 timeframe. Stick with daily.

Couple of other notes.
1. "Full Stochastic" is the same thing as just "Stochastic" on MT4 in case anyone was confused.
2. This strategy only works at the beginning to the main body of a major trend. Toward the end, the pair could be reversing but still be on the "correct" side of the 150 SMA. To filter these trades out, look for signs of trend reversal like double tops, head and shoulders, or simply new highs that are getting closer and closer together in height.

Hi Kal,

You did it right. When the EA is active you will see a Smile Face at the top right corner of the chart.
As you can see in the Strategy Tester Report, version 1.3 of the EA opens a trade every one or two months using GBP/USD on Daily time frame. If future results are similar to the results of the last four years, we can expect that almost 58% of the trades will be wining trades with an average profit of 370 pips on each trade. On the other hand we can also expect that 42% of the trades will be losing trades with and average loss of 170 pips each.
That can be “expected” if you just leave the EA running, sadly, past performance does not guarantee future performance.
Please remember that I am a programmer and I am also new to Forex. I’m sure that a more experienced trader like Edward can trade this strategy manually with better results.

Regards,
Haydel

Hi Edward and Haydel,

First off, I'm new to Forex and have been doing a LOT of reading on this site and others. This is by far the best site I've seen of its kind. I particularly like this strategy and also Advanced Strategy #10 (Trend line), so I'm testing both out.

I had a question about the EA Haydel designed (page 35) but since I'm new to this I'm not sure if I'm doing it right and what to expect. Here is what I did:

Downloaded the EA
Put in the right directory
Restarted my platform
I see it under "Experts"
I dragged it onto a chart and confirmed it.

What's next? What happens now?

Thanks,
Kal

Thank you guys so much for this wealth of knowledge. I use RSI and SMA alot on the 1hour charts and this daily set up it great too. It also gives me something to look at before staying in or getting out of a trade that I've had sitting for awhile... Kudos and thank you

Hi Mani,

I've done some basic testing, but nothing significant to comment on, since I had little time to properly evaluate it. Having left it at that stage, I was hoping that other traders would provide further feedback on it later...

I'm truly glad that Haydel has made a great summary recently, and even coded an own Expert which we can now try out. (You'll find the link few comments up).

Kind regards,
Edward