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

Hi Haydel,

thanks a lot for a wonderful summary and improvements, and, of course, for sharing the Expert with us!

I hope many traders will benefit from your findings.

Thank you once again & happy trading!

Kind regards,
Edward

Dear Edward,

Tons of thanks for the excellent site. I have one question, on May 18, 2009 (page no:20) you said, you will publish one system/method after the testing, i just want to know you already published ? If yes please give us the link (i have gone thru
all the pages, but i didn't find).

Best Regards,
Mani.

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

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 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

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

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.

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