Forex trading strategy #9 (Teodosi's Moving Averages tunnel)

hi,

thank you for sharing your great system.
I just wanted to know what money management methods you use for your system, like SL or Take Profit.Is -35 pips SL ok?-how much Profit should I expect?-100 pips like somebody sayed before?
I am just a greenhorn ;-D

Your best choice would be 1:2 risk:reward or higher.

But, before you try to capture the required amount of pips, you should know how much the market is willing to give you at any time.
So, say 35 pips SL is ok. But how much can we ask for when looking for a TP.

I would suggest reviewing my earlier posts about using Daily Range Average values and the custom indicator to help calculating it - Daily_Range_Calculator.mq4

http://forums.forex-strategies-revealed.com/stop-loss-for-crossover-stra...

Hope you find it useful.

Best regards,
Edward

HI, its really a easy and good system. But the point is, how are we suppose to predict the period. Example- BUY* when are we suppose to make a real exit,(when the first WMA5 touches WMA12) But u might get even more pips if u wait for another WMA5,12 cross over.

It can appear to be a long bend.

ANDY.
Thanks

Hi, sorry again, i think its better to attach a screenshot.

Let look at "A" -Buy , there are Exit 1, 2, 3 , 4. ( we can exits at 1 or 2, BUT we can earn more pips if we EXIT at 4)

Let look at "B" again - SELL, normally we will locate the EXIT point and make an exit. ( since its a ongoing live graph, maybe we intend to make a higher pips, thus wait for ANOTHER EXIT. This time, the trend is moving upward. In another words, we losing pips now)

So my conclusion is, how are we suppose to at least 70% predict there will be how many bend?
"A"-there are 4. BUT as for "B"- there are only 1.
Thus if we missed the intercept of WMA5 WMA12 (B) we will be losing pips for at least 1 or more days..

Its a good system for the 4Hours GBPJPY, but confusing for the 1H

Hey Andy,

nice examples, but what if we look at it from yet another angle:

as long as you're in profit - exit on the first signal from MAs.
as long as you're in loss - keep on trading till the red MAs crossover proves you were completely wrong.

Another favorite concept of mine - when I see a long candle in my favor, I'm closing half of the trade few seconds before this candle is closed. I feel it's a good method to satisfy both the greedy and the scared side of mine, so that I never lose a profit opportunity I was given, it calms me down and allows to exit with another half whenever I feel ready.

FD

helllo Edward,
am a newbie and your site has been most helpful, but i still have some challenges i think you can help find the solution.entering a trade when a trend is just begining is easy, but what should i do after two or three days of a particular trend,should i still trade along the direction of the trend or wait for a reversal since my indicators are telling me the pair is either overbought or oversold.But sometimes a trend goes on for days.Thanks ,your advice will be most welcome.
toju

Hi toju,

A reversal comes only when the market exits from the oversold/overbought territory, but never when it enters it or trades inside it. While inside the oversold/bought area, the trend is not & never over; it is, in fact, only starts to pick up its strength (if there is any potential/reasons to continue). Your reaction should be to tighten your stops significantly. If the trend accelerates while in oversold/overbought territory, the stops will never be threaten; but should the reversal come in, your stops will protect you.

Check out the following exit technique with CCI in oversold/bought:
http://forex-strategies-revealed.com/money-management-systems/cci-exit

Best regards,
Edward