Forex trading strategy #1 (Simple balanced system)
Submitted by Edward Revy on February 28, 2007 - 14:49.
Current Forex trading system represents a well thought and very simple combination of indicators. Knowing what signal to look for with each indicator, provides a strong tip for good entries and exits.
Time frame: Any.
Currency: Any.
Indicators: 5 EMA, 10 EMA, Stochastic (14, 3, 3), RSI (14, 70, 30)
Entry rules: Buy when 5 EMA crosses above 10 EMA and Stochastic lines are heading north (up) and Stochastic is not in overbought position (above 80.00 level) and RSI is above 50.
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Hi Edward, as you correctly say that assuming that the EMA's would cross, i made an Entry and incurred a huge loss.
One thing i have seen is almost beginner have less patience and discipline, hence losing money becomes a de-motivating factor among all losers.
Txs
Sanjay
Hi Sanjay,
only you determine how much you want to risk and lose.
Keep practicing despite losses, you'll get experience and with it knowledge how to deal with losing trades.
Best regards,
Edward
OK I have tried this method for a week, had some winners and some losers but it didn't beat normal odds. My balance kept oscillating from 98,000 to 102,000 back to 98,000. I hope it is because I'm doing something wrong. Particularly I do not know where to enter exactly. Is it when the lines just crossed or do you have to wait for at least a candle. I tried a bit of everything and even today only I got stopped twice. Once I think I entered too late in the trend, second time too early.
It seems these indicators are rather lagging as sometimes you would think it's an entry opportunity as all 3 conditions seem to match, then a while later the lines no longer cross, RSI went back above/under 50, etc...
I use 1 HR time-frame. Is a 20 SL/TP right?
RSI and Moving averages can dance back and forth, that's why it is important to enter with 1 lot first.
The dilemma for all traders is: we want to get a signal as early as possible - EMAs and RSI give those early signals, but we want those signals to also be accurate every time - this condition is impossible to fulfill with early signals, only seriously lagging tools with late signals can offer more accuracy.
Best regards,
Edward
in your previous discussion you said you do refer to 4-hour chart and daily chart.what are the conditions that you look in 4-hour chart and daily chart to sync with 1 hour chart?
i my name is Godwin please i like to know which is 14,3,3 on stochastic is it k,D AND SLOW
THANKS
Hi Godwin,
%K - 14
%D - 3
Slow - 3
Regards,
Edward
Thanks Edward i will try it and give you feedback
From
Godwin
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