Forex trading strategy #10 (Egudu EMA+ADX Strategy)
Submitted by User on December 18, 2007 - 15:06.
The following Forex strategy was submitted by Egudu - our valued contributor. Thank you once again and let the market be always on your side!
Hi, this is Egudu, and i have this simple but efficient strategy and i hope you enjoy using it.
Currency: any
Time frame: 1hr
Indicators: 5EMA(close), 6EMA(open), [ADX(14) at 20mark]
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UPDATE:
Hi, i am Egudu and this is a review to the system a posted some time ago. Now i have added some other indicators to it: 5ema(close),6 ema(open), 55ema(close) and center of gravity indicator(C.G)
Center of Gravity 1.mq4
you enter long when the 5ema and has cross the 6ema and all are above the 55ema and the C.G should also have cross up in the same direction. The opposite should be for a sell. Now depending on the time frame you chose to use, that would determine your stop loss and take profit. for 15mins time frame you go for 15-20pips for each trade as profit. Note:the 5ema must cross the 6ema above the 55ema for a valid buy signal. The opposite is true for a sell signal. An osma indicator is also added to keep us right.
Hi,
When someone wants to write an EA for a system, what does that mean?
Claude
Hi Claude,
MetaTader 4 allows trading with EAs - expert advisors. These are custom written programs, that will trade instead of you automatically entering and exiting trades according to the system rules built in.
Regards,
Edward
Edward,
Does it mean most brokers do not allow this type of trading?
Also, if this can be done, wouldn't it be much easier to test the multitude of good-looking systems on this site with EA? It would save an awful lot of time with no human errors. Maybe it is not allowed on a demo...
Claude
Hi Claude,
MT4 is the most popular trading platform for automated trading.
Ea trading is definitely allowed on demo.
On the rest, you've got the point, it is great to be a skillful programmer in Forex, you save time while testing systems, and then eventually get a robot trade for you.
Regards,
Edward
Hi Egudu,
Thanks for the system, but what is the entry rule for a short entry. I ask because the ADX is mostly above the 20 mark, even when the -DI line is above the +DI line, (I think that is the normal thing with ADX).
Kwesi
That's the thing, Kwesi
ADX line itself doesn't tell us whether it is a down- or an uptrend. It only tells how strong the trend is: ADX above 20 level indicates a strong uptrend or a strong downtrend, below - weak.
We use +DI and -DI to determine the trend: +DI above -DI means an uptrend, +DI below -DI means downtrend.
Back to you question now: if -DI is on top and ADX line is above 20 mark we have a strong downtrend, time to Sell.
Regards,
Edward
HI!
Interesting strategy but try add Parabolic SAR and use it only for indicating the trend and exit from short or long positions. You wrote that most popular program for trading is MT4 but some indicators which we have in MT4 not included in other program. I think let's try to use and add standard indicators. -Regards, Ilya
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