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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Is this strategy still working after 3 years? What's a current % of positive trades?

This seems like a very promising strategy. I will give it a shot. Thanks for sharing. Dave from Belgium.

Thank you Osahon,

I'm glad you've found the approach to it. Well, you've somewhere answered your question already: if you attempt to forecast before indicators give you a real signal, you'll be no longer following your own rules.

Other than that - keep trading it, write notes, may be try to find 1-2 best performing for you currency pairs and stick to it.

Happy trading!

Hello Edward.
I think this site is wonderful and u're empowering many especially me, its definitely the best.
I'm a beginner & i personally like 9 ema with entry and exit rules at 5 and 9 emas crossover, filtering with macd and / or adx depending on market behaviour on hourly chart fine-tuning on 15min charts. It has been giving me promising results but i tend to get major losses averaging approx 2 of 5 trades especially when i attempt to preempt indicators. Could u please help me test and advise me what u think?
Thanks, really appreciate and God bless

i'm Elmi, excuse my english. this is only my strategy that i'm using it now on my life trading. so far so good. i only trade on strong trend. its work very well. my tp is only 10 to 15 pips no stop loss. i want to thanks Edward for this great site of yours. you are doing great favour for everyone like me. Thank you again Edward. Thank you very much.

When you have a range - usually RSI and Stochastic will suggest that too.
On RSI, for example, try adding levels 55 and 45. When RSI is stuck in between those levels - that's when you don't want to react to EMA crossovers.

Also, it's better to come to trade during 8-11am EST, when the market is most active and is least prone to sideways movements.


Good System

Good work
However, Buy or Sell works only if the larger frame is in favor

hi everyone,
no doubt this is a good strategy.But it is very perplexy when the market is moving sideways or in consolidating phase.The sma curves meet frequently.

what to do during that phase?


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


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

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.

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!

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:


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?

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?


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