Forex trading strategy #8 (Teodosi's simple system)

Hi people, i have read all the post, and i have a doubt...

I am using avafx demo account and the rule is Stoch(5,3,3) and RSI(7).

But my plaform only gives me this options:

stoch - observation period
and ...avarege period... So how can choose (5,3,3) if i only have 2 options?

On the rsi... i have 3 options...
rsi period
observation period
avarege period...

I would like you guy's to explain me what numbers should i use in all these options...
Thanks a lot

Any MT4 platform will do.

What is the recommendated demo trading platform to use for this system?

Thanks a lot Peter,

your version as well as the summary is highly appreciated!

Kind regards,
Edward

Hi Edward,

I have uploaded a collated version of Teodosi's Simple System plus all the comments.

Hope it is useful to someone.

Again, I am not recommending the system, just presenting a version of it.

FX_Teodosis_Simple_Oscillator_System.pdf

Kind regards,

Peter.

Thank you for the tip!

I'm a Fibonacci follower and I like your idea.
In my opinion, the faster we learn that the trade is in trouble, the better. I don't care losing 10-30 pips if it helps to save another 50..

If, for example, we encounter Support/Resistance with Fibonacci, it would make sense to tighten the stop to the closest possible limit and let the market make a move, instead of giving up on a trade completely. 60-70% of the time we'll be stopped out I believe, but the rest of the time we'll have a continuation of the trend and make extra pips.

Mark

I have been looking at this strategy and its seems to be a very profitable system when employed correctly. However, I believe it is prone to too many false signals. I have a suggestion that may minimize stop losses being triggered.

If you notice from the graph in the example,upon the various entries, there are very strong moves and some that are short lived. I think most people falter on this trade because on the short lived moves, they still hold on to the trade hoping that it further progress in there favor. Then the trade reverses and triggers the stop loss.

My suggestion would be to use a Fibonacci Retracement to determine areas of support and resistance. So for example, if you have entered a trade to go long(buy), plot a fibonacci for the most recent downward move. The fibonacci levels will automatically appear. If your trade encounters resistance this might be a good time to exit the trade.

If you have entered a trade to go Short(sell), plot a fibonacci for the most recent upward movement. The fibonacci levels will automatically appear. If your trade encounters support this might be a good time to exit the trade.

The only drawback to this method is that you may have exited a potentially lucrative trade. However, forex provides many opportunities to make up for those errors.

With this method, the worst case scenario is that you will have a minimal loss, provided your stop loss was set at 100 pips. Best case scenario is that you may a positive pip count upon exit yielding some profit and saving you from being stopped out.

I would appreciate it if I could get some feedback on this comment.

Thanks finally something that works i made 3 profitable trades so far.

You're right Thomas! Well my username is Forexchampion..better than User lol.
Cheers mate!

By the way do you happen to know the answer to my previous question? Thank you for your time Thomas.

Best Regards,
Forexchampion

Hi,

the FSR Forum login is not compatible with the strategies website, we're sorry.
Simply sign your comment in the end, and we'll know how to call you.

Cheers,
Thomas (mod)

Hello fellow traders! I have been following this strategy since its very first explanation and have to say that it looks very attractive. I would also like to thank not only the author of this strategy but also the creators of this website. Thank you Edward! If only there were more traders like you, we would live in a better trading world. Anyways I know that it must be getting boring to always hear the same comments but believe I have no words that can express what I feel. Other than those that have already been said to express ones gratitude for your kind help.

To continue I was wondering what happened to PNA's EA TSV02.mq4...Did you continue testing it Edward? I remember PNA saying he was planning on providing new versions but I haven't seen a third update of the EA as of yet. Well anyhow, I would like to know where we stand with with the EA implementation.

Thank you all for your time!
By the way: I created an account in FSR forum website, but is there someplace where we can login on this website? I prefer people calling me by my username rather than ''user''.

I find it helpful to use bollinger bands and look for gimme candles signaling reversals...

Thank you, Frederic.

It's great to have such support.

Happy trading!
Edward

Hi JL,

I've been demo-trading it since Januari 19th with fairly good results, however the last 2 weeks weren't good. The GBP/JPY pair was very chaotic and many false entry signals have stopped me out. I only trade that pair for my journal.
I've occasionaly tried other pairs with this system but I have noticed an interesting fact: many pairs seem to somewhat behave in tandem. With other words when GBP/JPY pair profitted then all other trades profited too. And vice-versa. So IMHO it appears that increasing lot size on one pair or spreading lots over a few pairs has the same amount of risk. Then again I did not systematically apply this system on many pairs so maybe it was a coincidence.

Frederic

Hi Frederic, thanks a lot for your clarifications!

Do you happen to use this strategy on GBP/USD or GBP/JPY pair? How's it so far?
I'm trying to test it in these 2 pairs and see how it works.

JL