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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Dear Edward,
Apart from the above strategy, do you trade with suceess any other daily or 4 h strategy?
Thx.
-Tom
Hi Tom,
You'll find the answer to a similar question I got in the forum, please follow here:
http://forums.forex-strategies-revealed.com/advanced-strategy-the-midnig...
Kind regards,
Edward
I am a licensed commodity broker and a CTA. I started using this method about 2 months ago with live money. This is a very, very good system. I usually trade off of 4 hour charts since this is a daily chart it was a change for me. I don't get to many trades off of this system but it is worth waiting for the proper set up. When I do get the "go" to enter a trade it is usually for a nice pick up of pips. I think I have had about a dozen trades in the last few months using this system. I only follow a handful of pairs. I have averaged a +116 pips per trade with no losses!!! When I am up say 100 pips or more I adjust my stops usually with a trailing stop. So with this kind of success who needs another system. Being a daily system you need to train yourself for patience to wait for a good set up. I highly recommend this system.
Thank you for a valuable feedback!
Happy trading!
Edward
I am happy to see your success.
Regarding adjsting ur stop loss, when you see up 100 pips, do you adjust a trailing stoploss to the price when you bought or sold?
Thx.
-Tom
hey edward,
i just wanted you to clarify kindly, when you say Entry for uptrend: when the price is above 150 SMA look for RSI to plunge below 20. Then look at Stochastic - once the Stochastic lines crossover occur and it is (must be) below 30 - enter Long with a new price bar.
Do you mean that prices must cross below and then again above the rsi 20 and stoch 30 lines to validate an uptrend or do the rsi and stoch lines have to just cross below their respective lines to signal an entry? because the example chart highlights the whole area where rsi and stoch lines cross below and again above the 20 and 30 lines..?
(i browsed through the first 9 pages to see if this question had previously been asked so felt the need to ask)
thank you in advance
Hi,
To validate an uptrend signal, RSI should go below 20. That's it for RSI, and we switch to Stochastic, where we wait for a cross below 30.
We don't wait any longer for RSI or Stochastic to exit their oversold areas (above 20 and 30 respectively).
(... But more conservative traders may actually modify the rules to wait for Indicators to exit their oversold zones. This strategy doesn't require it).
Hope it answers your question.
Kind regards,
Edward
hi,
Your are a real trader!! hands off!! many guys will tell "I am just packaging this whole system in just $xxx only for people to get benefit with them.." --> y don they give for free if they really want to benefit with them?? its only u who gave all strategies for free.. (i think.. i din saw the whole site..)
i just learnt this strategy and checked it with charts about its accuracy.. i think its around 95%.. i am going to try it.. s there any other strategy by which we can open short term trades? like doing more trades a day for more income?