Forex trading strategy #3 (EUR/USD simple system)

Hi
Buy when Macd crosses above Macd signal line( below 0 ) and

Sell when Macd crosses below Macd signal line ( above 0 )

thanks for sharing...looks convincing. but when i try to follow the set-up steps above, I only have 1 instead of 2 lines on MACD Lines? can anyone explained. Thank you.

Ok are u using meta4trader platform, if yes then goggle for "GOOD MACD" indicator on the internet and install in the mt4 platform.

Thanks everyone.

Didn't read entire thread as I'm doing 4 things at once, but we may want to add force index as added filter. Use it at default settings and only trade if it agrees with direction.

More MTF_SR indicator, it will help considerably.

Here is one to upload:
MTF_SR.mq4

Hi Edward.

I would like to ask for a bit of your time if I may?

I have been trading this system cosnsitently for around six months now. Following the rules exaclty as they have been laid out through out the entire board.

I find that some months, particularly August this year. The loss was so great that it seriously puts a huge dent in the previous months profit. almost resulting in a break even situation over two hole months.

What I have also noticed is that in most months there is generally one or two massive trades that net 150 - 300 pips. If you happened to miss any one of those trades, that month would result in a loss. So all of you other trading efforts amount to zero most times.

I trade a 3% risk per trade. My lots sizes are based on the SAR stop. I only trade in agreement with the 55 SMA trend. I only trade when the MACD crosses above or below zero as per the rules. I use the SAR trailing stop for exits and yet I still run a really pointless return after 16 hours a day of chart time.

Is there anything you could think of that I could try to sharpen this system or is there a better system you suggest I try? As mentioned, I watch my charts for an average of 16 hours a day (self employed)so I am not scared of putting in the effort.

I have studied tons of systems and indicators, I have traded this system with extreme discipline yet im still coming up short. I have looked a tons of additional indicators and additional signals I have learnt over the years to try and get a better result form this strategy with minimal success. I always seem to land up a filtering out the good trades with the bad and land up back at square one.

The political climate where I live is touchy and I would really like to start to build up a dollar based safety net if things ever go pear shaped here, So I dont expect to become rich over night or even need to draw any funds right any time soon. I would just like to start seing some possitive growth.

I am not really comfortable with scalping. The 30 min / 1 hr chart is my perfered choice.

Do you possibly have any advice for me as to which direction I could look at?

Regards
Lloyd

Hi Lloyd,

I can think of many ways to re-work it, but what I can't afford nowadays (time-wise) is a long enough testing of the new ideas...

First of all, see if you like:
- 100 WMA instead of 55 SMA. While showing almost identical curves, it does a slightly better job in smoothing out questionable corners.
- try 4 hour charts for a change.

Below is the 4 hour EURUSD in August:

It doesn't look that ugly here, considering that the month of August has tested many strategies to the limit: high volatility combined with an extended trend reversal is tough to capitalize on.

So, what's on the above chart:
1. Heiken_Ashi_Smoothed.mq4
2. MACD_AllcoloredMM2_4.mq4
3. 100WMA.
We use the same idea - trade only in the direction of 100 WMA, MACD red - sell, green - buy. Instead of SAR we'll use Heiken_Ashi.

(Also, another idea, possibly: just test to see if it makes sense to keep this 4 hour chart and use its signals while trading the same old strategy with SAR on 30 min as you used to).

Kind regards,
Edward