Complex trading system #7 (Mohammed Munzer Forex system)
Submitted by User on October 21, 2007 - 18:39.
Current Forex system was submitted by Mohammed Munzer - our valued contributor.
hello all
timeframe: daily
EMA(34)
SMA(150)
Double CCI (CCI=50 and CCI=14)
Full stochastics (5,3,3)
- When price is between EMA(34) and SMA(150) Do not trade
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Hi Mohammed,
Thanks for your input. I am trying to apply this strategy to ALL pairs. If you go and try to find setups after 24:00 EST time (this is when new daily candle starts at least on my chart), you would see that you usually have couple of opportunities (or they will be there soon in day-or two). I do not think that you should be concerned with jumping in the trade when you miss it from beginning. That would be chasing. There are plenty of opportunities out there to go in at the right time. I also do not play re-enter again. Like I said, there are plenty of opportunities that re-entry is not really necessary. (At least what I saw by now).
Filtering with 10-15 pips does not look so bad. The problem is if you increase this filter you would be getting in the trade very late. and we do not want that.
I think that biggest area for improvement is S/L limits. On some of the pairs like gbp/nzd, daily ranges are huge, and basing your trade on only 75% of ATR is going to kill you. Sometimes you would end up with 100 pips s/l, but is still not far enough to survive volatility.
My thought is that maybe trades should be entered with S/L not more then 60 pips (if ATR allows). That way we would be able to protect our capital. Maybe that should be part of the entry rule.
What do you guys think?
Erni
Mohammed,
This system looks promising to me. I am in the process of testing. In my trading platform I do not see CCI. Can you explaine what CCI means? Can I set up CCI manually if my trading platform does does nto provide one? I am still learning different system.
Thanks,
Rahim
CCI - Commodity Chanel Index - you may study about it here: http://www.investopedia.com/articles/trading/05/041805.asp
Erni,
You said "My thought is that maybe trades should be entered with S/L not more then 60 pips (if ATR allows)."
What do you mean by if ATR allows. Can you explain it a bit?
Thanks,
Rahim
Hi Rahim,
we should not enter a trade if ATR is setting us for more then 60 pips S/L. Such a filter, would save you from many false signals.
This looks like a promising system. Has anyone tested it yet, any results to share?
Very Nice Site! Thanx!
Hello..
I am a new forex user, what does "trade long" mean, and what does "trade short" mean?
thank you
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