Forex trading strategy #1 (Simple balanced system)

Hi,

it would be SSD - slow stochastic.
RSI period = 14, while 70 & 30 are the horisontal levels, which can be set on RSI by default, or yuo can draw horisontal lines at 70&30 manually.

Best regards,
Edward

Hi Edward,great site You have.Keep it up !
I have been trying to use this strategy on a 1 hour time frame,eurusd .So when all conditions are met,how do you determine your entry point in the new candle because sometimes the candle will have extreme shadows which could make you enter a trade too far in the wrong direction?
Secondly in a situation where the 1 hr time frame signals entry in to a trade but the 4 hour time frame is moving in the opposite direction,can i still enter the trade?
Thirdly,with this strategy,about how many signals on average on the one hour time frame charts can i expect in a day?
Lastly,which is the best indicator to use to show the overall direction in 4 hour charts?

Hi
Good work here.
My question is,when markets are opening,for instance the European market,there is a lot of pip movement in the first hour,can this strategy be used to capture the momentum?If yes,Please help with suggestions.If not,What strategy can one use to capture the pips during that hour?
Regards,
Effie

Hi,
When all conditions are met, you simple enter as soon as the new candle opens.
You have to trust the signals from your main time frame. you can us e a higher time frame for trend confirmation, but there is no need to duplicate the same settings there - a few trend indicators would be enough. If 4 hour chart advises the opposite trend direction to the signals picked up on your 1 hour chart, it's probably better to wait for another/better trade.
In one day you can expect around 3 signals on 1 hour chart. Sometimes more, but other times - none at all.
To follow a trend on 4 hour chart you can use such indicators as: CCI, 50 SMA, 200 EMA or even a simple Parabolic SAR. There are tons of indicators, many of them are custom MT4 indicators you can try (see also our section with MT4 systems).

Effie, if you're looking to capture the pips of that first hour, you'll need to look at opportunities on 5-15 min chart.
I'd suggest having a look at this system as well:
http://forums.forex-strategies-revealed.com/combination-strategies-t140....

Regards,
Edward

I trade this on the daily time frame, only my exit strategy is much different. Backtested at 2000 pips yearly from EUR/USD | 1000 from AUD/USD | Roughly 850 from Cable and 800 from USD/CHF.

My exit strategy is a stop loss only. It starts just outside the most recent closed candle, then as more candles appear, the stop loss is adjusted once a day to be out of range of the 2nd most recent candle. Works miracles - beating the backtest already!

This stratgy looks gud as somebody said if u can wait for RSI to get above 50 then your win percentage could be more than loosing.
Thanx
VJ

hi everyone,

i marked the zone on the RSI were trending is most likely (56,327-44,490) and don't enter a trade if the RSI line is in this zone. is what i'm doing a good thing?
pls reply

Yes, why not. You're picking a more reliable signals, although it costs some missed pips, but this should bring its rewards.

Regards,
Edward