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

@JL

I think that question has been answered already as I've been through all pages too LOL.
The indicators can already have left the area but they should have registered there. That means you see a top in the area, then a slope in the opposite direction.
My gut feeling tells me it's even a stronger indication that a trend is reversing.

Frederic

Hi Edward,

Thanks for all the great work, Edward!!

I've reviewed all the 23pages of Teodosi's strategy, however I still have some doubts over the setup conditions and would need your help.

Does the RSI and Stochastics need to be at overbought/oversold level when the 2nd candle has closed half of the previous candle?
Or it's not necessary for OB/OS condition to last throughout the 2nd candle?

Thanks a lot Edward!

JL

I've decided to keep a trading journal from today in which I will post every trade I enter on the forum here.
http://forums.forex-strategies-revealed.com/teodosi-simple-system-t325.h...

Frederic

Edward thanks a lot for your great explanation and your (always) professional approach of the subject. I'll have a closer look to my trades according to your point of view.

Marios

You're welcome to re-post it, with a link pointing back to http://forex-strategies-revealed.com/teodosi-simple-system

However, please keep in mind that extensive copying of the content is not allowed.

Thank you for your cooperation.
Thomas

Teodosi ur system soo lovely ....I really like it. can i post it in another website? i copywrite ur name. ok
I want ur agree.
^^

Live trading this strategy shouldn't be THAT different from a demo environment I think because of rather large SL/TP levels. I mean slippage might be a greater issue when you trade for a few pips here and there and the order gets filled way above/below what you wanted.
I've currently been demo trading this since January 19th of this year on one demo act only for the GBP/JPY pair with an 11% gain in one month and on a second act since Feb 1st on multiple crosses with fairly good results too. (5% but not yet one month)

Good question, we had some similar ones before, and that's how it works:

Try to answer how many times did you return to a website where you picked up a strategy or an idea in order to post your feedback or trading results? Not many traders do that, especially when they seek no additional advice about the strategy.
It is just the way it works for many websites, and we are happy to have traders who do come back to leave a feedback and share their new discoveries and improvements on the strategies they've learned from us.

Cheers,
Thomas

Hi, love this forum as it gives me good ideas to start out.

Was wondering if anybody has tried this strategy out live and made profits out of it? It seems like all of us are still in the testing stage. ;)

Hi Marios,

Such traps occur from time to time, unfortunately.

I've made a screen shot of the GBPJPY on Jan 13, 2010.

As you said, all conditions for Selling the pair were met, but as soon as traders sold GBPJPY, the market reversed sharply. Very unpleasant situation.

Is there any remedy for it?
I have two recommendations:

1. To be more conservative, and instead of going in immediately on the Close, place a pending order below the signaling candlestick, especially so, when this candlestick is a long one.

2. Get additional clues from the RSI indicator: when RSI reaches an oversold/overbought level and SHARPLY exits from it - that's a good indication of a reversal. However, when RSI reaches an oversold/overbought level and doesn't immediately exits from it, and instead trades there for a while, that's an indication and that a trend is not planning to change, and any corrections to it (marked with RSI exiting the oversold/bought levels) will be minor and temporary.

GBPJPY is quite unfriendly for the past few weeks, that's true. Thus, it is better to avoid any additional risks and wait a bit, unless you have a plan and a feel for the dominant trend.

Best regards,
Edward

Is it just me or is the GBP/JPY pair behaving in an erratic way since last week? I was trading this system relatively successfully since one month, but I think it was because the pair was moving sideways with ups & down of 200 pips per day, almost like a beautiful sine-wave, but now there seems to be a breakout or something?

Please allow me to transform a little bit my last 4 lines of text. The pair gave only 12 downwarding pips 5 hours later. It also gave 165 upwarding pips 23 hours later. According to this strategy this should be the "perfect selling opportunity". But it wasn't. It was a real trap. In this point I have to say that I strongly believe in this strategy. It is the only one that I use in fact. It keeps on giving me good profits and small losses. I just picked up a random point on a chart of a random pair looking for good reasons to avoid seemingly ideal "trading alerts"! I didn't mean to bore/tire anyone and I'm deeply sorry if I did it...

Marios

Good morning from Greece (...with all of its terrible financial problems…!),

I have to admit that I love this strategy and Mr.Theodosi has to be proud of himself that he can be so humble (by the wonderful christian point of view) that he wants to share such as great and profitable systems with everyone! When it comes to you Mr. Edward Revy what anyone can say? You are just great, you and your terrific team! Keep up the good work! You help us being better and smarter day by day! Thanks for everything!

Allow me a question! Trying an in-depth analysis of this special anyway forex strategy I'm looking for reasons why a perfect "trading alert" with all of the factors to be intersected (slow stochastic 5.3.3 and RSI close to 75 and downwarding candlestick more than 50% - when it is closed - of its previous upwarding one, or slow stochastic 5.3.3 and RSI close to 25 and upwarding candlestick more than 50% - when it is closed - of its previous downwarding one) can be failed! So, all of the time I'm coming back to GBP/GPY 1Hour chart 12:00 to 13:00 January 13 - 2010. Please, I'd like you, with your huge experience as a helper, to tell me one, just one reason, why it didn't work so badly! I already know that I don't have to stare at one single point in the abyss of forex market that anything can happen, but please allow me to have this question. What could go wrong there? The pair gave only 12 downwarding pips 5 hours later in this ideal selling opportunity according to this strategy that has already gave me several of profits and - sincerely - very small losses! It also gave 165 upwarding pips of losses 23 hours later! So, there are 0 reasons to follow a different one until now! Please Mr. Edward I’d like you to give me one fundamental or technical analysis on this specific GBP/GPY chart point.

Thanks a lot for all!

Marios

Hi Diaa,
I've lost the trail. Could you tell me what do we want to check?

To the other user:

I've probably overcomplicated it while trying to make it simple, sorry =)

1. EST
2. Monday 10am-8pm, Tue-Thur 4am-8pm, Fri 4am-12am.

Cheers,
Thomas

"Submitted by Thomas on December 16, 2009 - 01:25.

Days - Monday after 10am through Friday before 12am, taking breaks every evening after 8pm and till 4 am in the morning."

2 things aren't clear to me:

1. Which time-zone? I take it you mean EST?
2. Do you mean Monday - Thursday from 10 AM - 8 PM except Friday where you stop at 12 AM?