Forex trading strategy #8 (Teodosi's simple system)
Submitted by User on September 20, 2007 - 04:59.
This Forex system was sent us by Teodosi.
We are proud to have such users willing to share their thoughts,
ideas and systems so that others can learn and trade Forex even more successfully!
Thank you, Teodosi! Your contribution is greatly appreciated!
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"Hello guys i`ve been using one very profitable system and i want to share
it with all of you. If anyone has any suggestion i`m open to hear something
new to add in it.
This is my system.
I use 1h chart on GBP/JPY with Stoch(5,3,3) and RSI(7). My idea is this ...
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I have found adding 10, 25 and 50 exponential moving average lines helps me keep to trending rules. I suppose its mixing the basic ema crossover method with teodosi's reading the candles, there is alot to watch for but I find the ema10 crossing the ema25 confirms the move. ema50 allows the current trend to be observed and indicates which way the market is likely to move. I am currently only back testing this method but it seems to be making massive gains. One trade was nearly 300 pips alone!
Hello guys,
I do like this strategy as it is very simple to understand even to those who are new to forex. I was wondering if anyone came up with an idea how to filter out the false signals when the market's clearly trending. The backtest I did for the last 6 months shows only 30% success rate and 5 - 6 SLs in a row aren't a rare occurrence(I know, one great swing can often erase 5 previous stoplosses, but I'd still like to know if there is a way to filter out the false signals in a trending market). Has anyone been using this strategy on live?
Best regards,
Andrew
Yes, it does. At least I would enter.
A delay of 2-4 candles is fine.
Best regards,
Edward
Try simple #9, 10 and 11, although some of them will suggest higher time frames.
5 min trading by its technique is close to scalping, so you can look in scalping strategies section for some ideas.
I believe we'll get more new strategies for smaller time frames soon. Keep checking us back!
Best regards,
Edward
What if the next down candle does not close at 50%? But the following candle does. Does this initiate the trigger? Thank you for all of your answers.
Hi Edward, many thanks 4 the eyeopening strategies u've lined up on ur website. Your site currently tops my list of most visited websites. I honestly think you should be given an award for forex education globally. I was wondering, currently, what is the best strategy to trade the eur/usd pair, especially on a 5 or 15 minute chart, seem a bit confused by so many wonderful looking strategies, will be glad if u answer. Thanks a million and keep up your spectacular job!!!
Hi Josh,
Yes, it will be a valid signal.
A more alive forum is certainly a big advantage, but as live people :) we cannot sit and monitor it on a minute-to-minute basis. There is a lot of website abuse around, unfortunately, it would be difficult for us to maintain the quality of the content should we open it to public in a real time chat mode.
We do, however, have user registration at our Forex Forum
Best regards,
Edward
Also it would be great if this could be more of a live forum with comments as trades are setting up. Thanks again. Josh.
Hi Edward. This system is certainly appealing. I have a couple of questions. Does everything have to line up at once. I see that sometimes the RSI will hit 75 and then maybe 30 minutes later the stochs will be overbought and then maybe 30 mins. or 1 hour later we will have a candle that closes more than 50% to the downside. (this senario is based upon going short) However when the candle gives an indication the rsi and stochs may have come down slightly. Is this still a valid signal? Thank you. Josh.
Hi Walter,
GBPJPY has one of the highest daily average range. In a single move it makes more pips than any other commonly traded pair.
So, your observation is correct.
Regards,
Edward
Walter:
Hi user, would appreciate if you could code it and share with us. :)
By the way Edward, my opinion is that trading with gbpjpy is gain better result than other pairs. What do yout think?
That would be fantastic!
An exit is simply a new opposite entry signal.
Thomas
Hello all,
I can code an expert advisor for this strategy. So you won't have to stay all day long in front of your pc,but i need clear exit rules.
Hi Koka,
I think you can, if you focus on faster exits based on price momentum, rather then trying to get every last pip out of the price move, as we do when we trade with the trend.
Regards,
Edward
Hello,
Can I use this strategy to open positions against daily trend? How effective the strategy will be?
Koka
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