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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i like this post...

Edward, i just want to say thank you for this site, you have helped a lot of people and i am one of them, i pray God continually blesses you, may yours be like a tree planted by the river continually bearing fruits Amen.

Hi Pralay,

If I mentioned somewhere 20 SMA , then what I meant was: with 20 SMA you're trying to see the main trend. E.g. Price above 20 SMA - the trend is up, below - down.

You can use any time frame for EURUSD. Try first 1 hour TF.

The % will depend on the number of trades you take on a daily basis and the time you trade. Focus on trading during most active market hours - London + New York sessions.

Use Stochastic Slow (14, 3), it's the same as Full stochastic.

Kind regards,

i cann't place Stochastic lines according to your parameter.Actually we have two types of Stochastic lines ,one is Stochastic slow and other is Stochastic fast.Which Stochastic lines should i opted.I can placed EMA,RSI,but unable to place Stochastic lines .please help me.I use marketiva as forex broker.


I am pralay from it's nice web site for begeners.Your EMA's strategies is good,but i don't understand 20 SMA? what is that?What TF is suitable for EUR/USD?How much % of lose in this strategies?.
Thank you.
Pralay Moitra

Thank you, R!

Hey Gentlemans,

I have been using such strategy for Years . Pretty much every strategy works if Money Management and Position Sizing are well balanced . It is always in the Trader...99% . We can discuss technicals and fundaments over and still will be in the Traders head - discipline . Take it and test it for weeks. Then You will see . I can recommend to trade only first 2 Hours of US Market . I will be back later if i have got enough time to reveal more about it .


PS: Thx Edward for keeping this site unchanged and opened ! I am sure it is much appreciated :o)

Have you applied a reasonable filter to trade only active market hours?

Kind regards,

Hi Edward,

on the first look the strategy looks very nice. I have created an EA with this strategy, but the result isn't good. There are huge profit trades, but between them there are too much small losses. Here is the graph of the GBPUSD backtest of 2009.

Can you give me your E-Mail adress, than i would send you my EA with your strategy. May you have ideas how to make them better. Or send a mail to cool-fk()

thanks for your answer Alex

There are no "forward" indicators, as traders can't look into the future. An indicator interprets the price as it receives it when the market moves.
(There have been attempts to built forecasting indicators, based on mathematical theories, equations etc. But all those "forecasting" indicators remain in a class of "guessing" indicators.

An indicator is a reflection of the price action. Some indicators are able to interpret the price faster, or rather to say, they build descriptive graphs which quickly show market changes, while other indicators, would lag - meaning they would lay out the price interpretation graphs in a way where the market changes will be visible only after a certain period of time - this effect is known as smoothing out data.


you talk alot about a 'lagging' indicator, can you give up some examples of a 'forward' indicator??
thanks james

Does it refer to the current strategy, or is it a general case?
Either way, if balance is now $381 and you've managed to hold onto trade that eat 1/2 of your balance earlier - that's straight of the shelf a very bad money management case.

How would you SAVE now? Not a chance to save a lot. the best you can do is close your trades before the remaining balance is lost.
The point is, if you're lucky - you can save something along the way, but in all other cases - you've already done the damage, where it's, unfortunately, too late to call for a money management.


P.S. to those who thought he should have hedged it: hedging is not an option for an inexperienced trader. it's a temporary relief, to stop the havoc, but no more than that. In order to get into a hedging positions, a trader must carefully pick the timing and price, which requires skills; simple jumping in into an opposite trade won't save you from losses acceptance of which you've temporarily suspended.

No body responde how to fix this situiation !?
if you are in this one , how can you save your 35.25$ , to stay in market .

ANY advice from your experince ... please think and suggest .

Edward , and all of you , if you are in this position how resolved ?

Thank you

this is a situiation :

Sell GBPUSD at 1.5396 , now LOSE -249.99
Sell EURUSD at 1.2997 , now LOSE -83.64
Hedge the GBPUSD at 1.5896 now LOSE -11.41
Hedge the EURUSD at 1.3183 now LOSE -2.99

The Balance now is $381.75 , remaining $35.25 and stand , Left Margin is (-$14.75)

The question is : how could you SAVE as much as possiple , what has to do ?

Traders : Whould you ansewer this ?
Thank you .


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