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 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
Also, what is considered 'close' to OB/OS line? Or is this simply arbitrary?
JC
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
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 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.
I've found this t work well when the market is ranging but not so well once in a tend...
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
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,
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