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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Hi Ken,
I am beginner so could you explain me what does it mean
GBP/JPY has high volatility and low liquidity?
Regards ,
Darius
GBPJPY my love
GBPJPY is a great currency pair.
i strongly advise beginners to stay clear from this
pair cos of his high volatility and low liquidity
which is most times as a result of carry trades advantage.
Any way for the advance traders, with very sound money management rules, can do greatly.
making $50,000 from this pair is realistic.
shalom!!!!
from ken, Nigeria
Thanks teodosi, i really wanna know if you've developed your strategy a little more?
Just as chris said, very reliable only on consolidation of price action.
how do u apply it during trending market????
Thanks ken,
I found that when the market is in a trend, then it best to add MACD and wait for a cross to confirm a direction change. Has anyone else tried anything to enhance this strategy?
Chris
I've found this t work well when the market is ranging but not so well once in a tend...
Hi Chris,
Your notes are right, however, waiting for RSI to cross 50 mark is a more conservative approach, which would in many cases lead to significantly delayed entries.
Traders who don't mind missing some pips in the beginning in order to get max confirmation for entry can surely use your advice with a success.
Regards,
Edward.
Hi Edward/Teodosi,
It looks like the RSI just has to be past the 50 mark either up or down (versus being close to 75 or 25) in order for the rules to apply. Box 3,6, and the last box are examples. Is this an accurate interpretation?
Thanks in advance,
Chris
Hi JC,
Yes, it had several losses during that time. GBP/JPY pair has been extremely rocky since the beginning of 2008. At first we met Support at weekly EMA 200 level, then the pair danced at the 0.618 Fibonacci level (again it is better seen on weekly charts).
All-in-all this created some difficulties for traders to understand market's true intentions.
Regarding your second question:
By 'close' to OB/OS area I meant readings near 70 level for overbought and 30 for oversold, which indeed can be treated at traders sole discretion and risk tolerance.
Regards,
Edward
Also, what is considered 'close' to OB/OS line? Or is this simply arbitrary?
JC
Hi Edward,
I've back tested this strategy and found that it had several losses from 1/8/08 to 1/16/08 on the 3h on GBP/JPY. Can you please confirm? Or maybe I'm not applying the strategy properly? Thanks for all your wisdom!
JC
Hi,
It can be either way. the goal is to get both signals (candles formation plus Stochastic) in place. It doesn't matter which comes first.
Regards,
Edward
Hi Mr. Teodosi and Edward...
I need to know something about entry... For example for sell we enter for ssto(5,3,3) to cross from overbought region and then see candlestick movement i mean valid combination then enter...or if we see valid candlestick combination before crossing of ssto from overbought region and wait ssto to cross each and then enter... plz respond ... ofcourse this system is really great and highly appreciated... i just need to know wnen to enter...?
Thanks...
hi Teodosi,
Sorry please,Do U use marketiva.I think the platform u displayed seems like theirs. I really like the platform but was informed by someone that they are fake. What do U have to say.Curiously expecting your reply. Thanks
Authentic
Hi kc,
Happy holidays!.. and sorry for this delayed answer. I love this time of the year and tried to enjoy it to the very extend!
Most often it is not about trading platform appearance, but rather about its performance and, most important, trading conditions you're going to accept from a chosen broker.
It is quite difficult to suggest a broker without knowing traders' specific needs and preferences.
Let me give you a link where you'll find lists of brokers sorted by categories:
http://www.100forexbrokers.com/
All-in-all Forex brokers nowadays are in a very aggressive competition, so conditions may always change and some good offers and improved trading platforms may emerge.
My best advice would be to demo trade with a broker whose trading conditions you find suitable and then invest some small portion of your capital to make further live testing-trading before trusting your entire investment to them.
Best regards,
Edward.
hi edward,
thanks for your help. i would like to know which broker are you using or which broker do you recommend? also, i tried to set the stochastics with fxcm's trading station but the lines look funny! not like the lines like mr teodosi's chart.
best regards,
kc
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