FREE FOREX STRATEGIES

Forex trading strategy #20 (63 EMA breakout)


Submitted by Oladayo Sakoto

Hello my fellow traders,
My name is Oladayo Sakoto from Nigeria and i'm just a new bee in the market, actually i've been trading for more than a year now. As we know the market's reaction is a little bit unpredictable in this era and i have seen a lot of events and scenarios whereby the daily trend can be changed within few minutes. So i studied hard and did a vigorous research on this strategy and it gave me 95% of wins and 5% of loss trades. Actually i back tested it for 7 months and it gave only 5 loss within this 7 months. May 2009 to November 2008. This strategy works only for GBP/USD pair cos of its great volatility.

Entry rules:
Draw a 63 EMA accross your 1hr time frame chart. If all the candle sticks downloading from Asian session are above the 63 EMA then the bias for the breakout is an uptrend. As soon as London session opens, measure the highest of the candle stick from Asia session and filter with 5pips (for 4 decimal plattform and use 50pips for 5 decimal plattform). Place a buy stop order and aim for 30pips (for 4 decimal and 300 for 5 decimal plattform). It will give you a minimum of 30pips and a maximum of 200pips. Use a stop loss of 40-45 pips. Do the same if all the candle sticks download below the 63 EMA and place a Sell stop order with the same filter and take profit.

Exit rules:
If the candle sticks downloading from Asian session crosses accross or touches in between the 63 EMA, exit the market for the day. Problem about this strategy is that it will you minimal entries throughout the month. Maximum of 8 trades a month and minimum of 6 trades a month. But when it gives entry you can be assured of winning.

Please back test this on the GBP/USD 1hr time frame as long as you can and see for yourself. But the problem is that i'm still working for a strategy that would give me entry points everyday for any currency pair. If any one has a great discovery has this, please e mail me at [email protected]....... I mean a strategy of atleast 90% winning streak.

IN ADDITION TO THE 63 EMA BREAKOUT

EXIT RULE:
IF YOUR ORDER DOESNT EXECUTE BY THE CLOSE OF THE 11:00 GMT CANDLE... PLS CANCEL YOUR ORDER AND WAIT FOR ANOTHER DAY. THE FIRST THREE HOURS OF THE UK OPEN HAS MOST OF ITS STRONG MOMENTUM AND VOLATILITY COS THEN ASIA IS ABOUT ROUNDING UP. TANX AND HOPE YOU MAKE ENOUGH PIPS.

MORE TIPS:
IF I WERE YOU, DUE TO MINIMAL ENTRIES YOU'LL GET IN A MONTH, I'LL AIM FOR 40-200 PIPS TARGET AND TRAIL STOP LOSS OF 30 PIPS. 30 PIPS IS SO SURE!

Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed

Hello Mr sakoto, am princess 4rm lagos, nigeria cud U plz lemme knw abt d chart...cos ma usd is nt responding...will b lookin 4wod

Hi Edward,
on your screen shot there are there are 2 candles below the 1.3955 price. If these candles were below the 63 EMA I assume ti would not be a trade as th rules are that all candles must be above the 63 ema line, is that correct?
Thank you

Hi Mr.Oladoyo,
I just came across your system (not too late I hope)and tried it on demo. It seems to be working quite well except for one minor clarification.You suggested we take initial profit at 30 pips and put a SL at 40 - 45 pips.Is it all right? I just feel uneasy about the Risk/Reward ratio. Thanks !!

Hi Oladayo,
When I back tested it for the month of March i showed 2 losses one for the 6th and the other for the 31st; however it did show 4 winning trades with a net gain of 60 plus pips with the 30 pip first profit taking exit. Could you back test the month aswell and see if it is correct and let me know if I did something wrong in my calculations?

Thanks Ty

Hi JL,

yes, they are included.

Regards,
Edward

Hi Edward,

Thanks for the screenshot provided above. May I know are those 2 candles, 7pm and 4amEST included when we look for the highest point?

Thank you Edward!

JL

Extremely bad results for the month of Nov 2009. Any good strategies that are suggested from this website? Thanks!

Socio ponga gráficos pa' entenderle mejor... Saludos

dayo add stochastic oscillator to your chart for divergence n momentum at the start of the London mkt. check december 3 2009 and you will note the divergence between the oscillator and price.thanks

Hi Oladayo

Your stratgey seems really interesting and I tried it for the first time today. Unfortunately I hit my SL of 40 pips. I hope this is only one of the 5% losses I will expereince in 7 months. BTW, did you gt he same result today?

Hi Nick,

"As soon as London session opens, measure the highest of the candle stick from Asia session and filter with 5pips"

Asia session lasts from 7 pm to 4 am Eastern time. So, you'll be looking at the highest price value among the candlesticks in that range and once found add 5 pips on top, which will be your entry point.

Please let me know if you have any further questions or need an additional interpretation.

Regards,
Edward

Hi Oladayo,
Im Nick, I dont get it, what does "highest high figure downloading from the Asian session and add 5pips to filter" means? and, what does its purpose?

very interesting strategy

Thanks for posting the chart with the 3 entries from last week.
Your using a stop of 100 points, that's not the setting from the
original strategy. Can Oladayo please clarify this ?

hi oladayo! i'm not sure if i'm doing it correctly but here are my entry points. sl and tp at 100 pips. asian session taken from gmt 0100-0900, highest high + 5 pips. all bars during asian session must be above 63 ema. managed to get 3 entries from last week. are they correct? i'm not sure if they're correct but it scored 3 out of 3.

gbpusd 63 ema Forex strategy


Post new comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image without spaces.