Forex trading strategy #1 (Simple balanced system)

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)

EA: SimpleBalanced_1_0.mq4

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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Can we apply this to trading US Dollar?! or do you suggest another system for trading US Dollar.

P.S. just the dollar, not pairing with other currencies.


hy Ed you have the best site I've joined
in this system let's stay that ema cross stoch is not in overbought but RSI is not over 50 if in next candle at her close RSI>50 we can buy?

Goodday Sir,
Let me start by thanking for revieling a few of your fovorite strategy to me.
Sir people still undermind the power of one of your strategies called the balance basic system.
infact aside the midnight stratedy i find this strategy second to none, cos each time i use it my trade breaks even without fail.

Here is the problem i have. presently i trade only eur/usd with this strategy there fore i find very few trading opportunities in the 4hours and 1 jours timeframe.
Sir i would like to ask you a question.
1. which other currency pairs performs well with this strategy.
2. which currency pairs are highly correlated to eur/usd

thanks for your anticipated cooperation.
Ojukwu Nnamdi

What are emas, rsis, stochastic. Quick glossary?

Please, Am Chris.....Am New in Forex but very interested in it. I have loose alot and I please want You to add me to ur messenger so that you can put me thru. Please add me at [email protected] thanks

Can anyone please tell me How to get these indicators in MT4 in really very new to forex

thanks alot it really works............

Can anyone make a simple expert with this strategy?

Try to stay with 1 chart mainly. i found that jumping from one chart to another will eventually confuse you, since the signals will be different: 1H says Buy, 4H says Sell etc, 1D sayd Buy again etc.

If you want to confirm your trade witha superior chart, then don't use Stochastic (because it's a momentum indicator), instead pick a tend indicator (for example Moving average) and confirm a trend with it.

What if the Stochastic is in the oversold area on the 1H chart but in the middle and heading up on the 4H chart. Do we still buy?? EMAs are cross and RSI > 50 on charts.

From my experience I can say that consulting with higher time frames just makes mess of the system with all the conflicting signals. If you plan on confirming with a higher time frame - don't use exact same signals (Stoch RSi etc), instead pick one Moving Average or one indicator - a trend indicator - and use it for confirmation on a higher TF.

StochRSI is a good indicator, probably a bit more accurate. Also try non lag Stoch, and non lag RSI.

WOW! I'm blown away to see this method was actually practiced. I started using both indicators simultaneously and never suspected anyone else would be doing it (everyone says they are too similar). Here is my concern - if you locate a signal in, say, 15M... should you consult the other time frames?? I always do, but sometimes that blurs my vision. Advices?

Also, recently I added the StochRSI. I am assuming you know of it. Do you think it will support the individual indicators (Stochastic, RSI), or is it redundant? To my logic, it brings a somewhat more accurate signal as it overlays the Stoch and the RSI together, and thus it confirms the probability of the signals in each of them separately. What do you think?


If you compare signals across different timeframes, you will rarely find that all time frames give the same signal, more often it's the opposite.
Use 1 time frame for your main trading setup.

What does one do when different time frames give conflicting views of trading? Should one give preference to higher time frames?

Hi Jack,

The setups are different. In Forex traders are encouraged to experiment and change the settings of the indicators to find best performing setups.

In Advanced #3 we work with daily charts, and I on purpose changed the settings for RSI and Stochastic to a faster version, and besides i also decided that for RSI I will look at 80/20 for oversold/overbought levels, while for Stochastic it'll be 70/30.
It's my "customization" so to speak. (While the common way and the standards are: for RSI 70/30, for Stochastic 80/20. Hope this makes sense).

The entries are also different, here we look at RSI crossing above/below 50, while There we work with the oversold/overbought levels, but also use 150 SMA to filter trends.
These are just two different trading systems, although they use common indicators.

Kind regards,


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