Advanced technique #9 (System Selection Technique)
Submitted by Edward Revy on September 18, 2008 - 10:21.
Choosing the right strategy for trading is a strategy by itself. (from Edward)
All credits and special thanks to Arsalan, the author of this technique.
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Hello everyone and thank you Mr.Edward Revy for publishing my ADX+EMA SYSTEM.
I want to share one very good idea with everyone.
This is not a trading strategy but a technique to determine which system to use and when. There are many systems available to use some are trend following systems like moving average crossover and some are oscillator based system which utilize indicators such as Stochastic, Rsi and William %R but if all these systems are good then why they work sometimes and sometimes they fail?
The reason is selection of a good system at wrong time.
Read entire post >>>
Check in the mean time ADX trading here:
ADX (Average Directional Index)
Hi,
You will have to consider only ADX LINE in this strategy.The other two lines i.e +DI and -DI are of no use in this strategy.
(Special Thanks to the user who posted the link regarding the uses of ADX Indicator.)
Happy Trading,
Regards,
Arsalan.
Can you give me a suggestion, what timeframe for this system will be used ?
Regards;
Hi,
Use this only for daily time frame
Happy Trading,
Regards,
ARSALAN
Thank you for yor insight.
H.B
Hi Edward and Arsalan,
This method looks very healthy, thanks for posting it.
Just a few questions :
-When you are trading with Oscillators (ADX < 20), do you sticks with the ones one the graph ? Meaning BB 20,2 - RSI 5 and Full Stochastics 5,3,3 ?
-Same for trend indicators (ADX > 30), do you just stick with MACD, or do you look for more confirmations ?
Cheers
The indicators were shown as an example in this case.
One needs to choose own set of tools, definitely with some additional confirmation setups.
Regards,
Edward
Dear Arsalan, Edward,
Could you tell me that I can use this technique on H1 chart? Which settings of ADX do you recommend in H1 chart? And could you tell me what is the best trend following strategy on H1 timeframe from this site? I see the best oscillator based systems is Teodosi simple system.
Best Regards, Mandakh
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