Forex trading strategy #20 (63 EMA breakout)
Submitted by User on May 10, 2009 - 11:25.
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.
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.
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@example.com....... I mean a strategy of atleast 90% winning streak.
IN ADDITION TO THE 63 EMA BREAKOUT
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.
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!