Forex trading strategy #9 (Teodosi's Moving Averages tunnel)
Submitted by User on September 20, 2007 - 08:21.
This Forex system was submitted by Teodosi.
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"Hello guys i want to help all of you and i want to share you some good system.
Like many traders say good system is simple one an that`s why i`ll tell you one very simple.
This is......
- 1H (of 30MIN, but you will get more whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 12 WMA (in yellow)
- RSI = 21
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Hi User
I don't usually follow the exit strategy spelt out by Teodosi. Unless I have time to monitor the trade. Otherwise, I switch to daily and set a target (and stop loss). On the rare occasion when I do have time to monitor, then yeah, I wait for the signal to exit. But I think I only did that once or twice and so far back, I can't remember which trade and can't provide a pix. Sorry!
And yes, I agree that this strategy is working really well. Very grateful thanks to Teodosi and Edward for sharing this strategy.
Cheers
Wong
@Wong
Thanks for sharing your experience. On what pair do you use this strategy, and on what timeframe?
Dave
Hi Dave
Usually EUR/AUD or EUR/USD, sometimes EUR/JPY. I always use the hourly TF. BUT I check if its in line with the daily. If the daily is going south and the hourly is going north, I pass even if the hourly Teodosi's MAs tunnel look beautiful :) BTW, I always trade Asia and Euro sessions. Only occasionally do I trade the US session. I'm in Asia and at night, I wanna relax, not look at charts :) I trade the US session only when I'm feeling hyper and can't sleep. Thankfully, not that often. LOL.
This is a very weird strategy. I've been testing it for days and it doesn't work without a decent exit strategy.
You could look at the EMAs crossing, but that will result in a lot of missed profits (happens a lot). An option is to use the Bill Williams Fractals, but that won't work all the time. If the trend changes and you are waiting for the opposite fractal arrow, you're already in terrible loss.
My only conclusion: Riding a positive trade will bring in lots of profits, riding a negative trade will loose you less money than a positive trade.
That being said, this strategy is only for those with enough equity.
I don't think this is a strategy for beginners. Just my 2 cents.
Hi User
I'm only trading the mini and at the most, 2 trades at a time. Its a great strategy for entering. But for exits, well, I agree with you that its not that great. I set my exits based on S&R on daily charts.
I started this strategy as a complete beginner to forex so I wouldn't agree that this isn't a good strategy for beginners. Just have to be more careful of the exits. I think its best to set a target exit rather than wait for the signal to change. Sometimes by the time it changes on the hourly, you are already in the red.
But on the whole, I luv this strategy. And I just love Teodosi :)
Wong
Dear Wong,
You seemed to be really loving this strategy. So can you please tell me how dependable is this strategy. Out of 10, how many positive trades do you get. Is it 80-90% successful.
I have been trying really hard to find a strategy that has a risk:reward ratio of 1:1 and a success percentage of around 90%. Is this the one? Thanks
I like to use the daily or 4 hour charts for direction then, I use the 1 hour or 30 minute charts for entry. I wait until price pulls back to the 18ema before
I enter a trade. My stop loss varies and I use pivots and s&r for exits.
The best system are GBP/JPY 1 Hour SL 100 TP 30 pips second when WMA 12 cross EMA 28
szeno
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