Forex trading strategy #6 ("Key Simplicity")

what's the overall expected win/loss ratio for the original daily strategy and the average risk/reward?
Thanks!
John

Hi John,

good question, but I don't have the answer for you, since when I used to trade with this strategy several years ago, I didn't know I'll be posting it one day on my website, so I haven't collected any stats, just kept the rules.

Also, it's easier when you have an EA and can create instant reports. For me it would mean manual record keeping, which I'm not ready to take on considering the amount of work I have to do to support the strategies on this website.

Best regards,
Edward

great strategy, thank you. thank you Edward.

Hi. Thanks for this very interesting strategy and thanks for your excellent site. I have a couple of questions regarding this strategy.

1)I see that there is another stategy posted recently by Aziz which is very similar but uses candlesticks also. Do you think that might be better on a shorter time frame ( i.e 1hour ) where as this exact strategy is better suited to daily?

2) What would you recommend for stop loss levels on 4 hour or 1 hour times frames?

3) In my testing of this strategy, I noticed that usually the EMA's would cross over before the RSI. Would you enter the trade as soon as the RSI has crossed to +51? Or do you think it would be better to wait till say 55 or 45 for short?

4) I am also very interested in you posted stategy using ADX and FRACTALS. Do you think these indicators can be used together, or do you think this would mean either too many mixed signals or too complicated.

5) Finally regarding the Fractal strategy posted in BASIC STRATEGIES, what do you think is the best time period for this strategy? I would prefer longer time scales but am worried that this maight mean largish stop losses etc?

Thank you very much for any advice / help.

Best regards

Pete

Hi Edward.
Sorry I have one more question for you please...

Would the 9 EMA work as a good entry trigger with this strategy ( as according to your trading method 1) or would you suggest just using either the original 5EMA or 12 EMA as the entry trigger?? ( i.e when the candle passes the EMA line)(( using daily charts))

Thanks mate for any help you can give. This site is so helpful. Cheers.

Pete

Hi Pete,

thank you for the feedback!

Answering your questions:

1) yes, that's a strategy with the same parameters and the same idea
as the one recently added by Azim.
(http://forex-strategies-revealed.com/simple/azim-x-system)

You can try any of the rules on 1 hour time frame, they should work there as well.
I initially recommended daily charts since there we get less false signals from indicators.

2) Stops should be placed at the closest retracement/swing high or low be it 1 hour or 4 hour or a daily time frame.
You can actually use Fractals to help you see those swings high and low.

3) If EMAs cros first, then we wait for RSI to go above 50 or blow 50 (depending on a trend). At which point we can already enter. However, the more conservative method would be, probably, as you suggested, to wait till RSI proves its direction bias and crosses above 55 or below 45.

4) We have many interesting ideas on the website, and I encourage traders to mix up strategies to get the best out of every trading method. i think you can definitely add fractals and, also, if you find ADX helpful, then why not use it?

5) the higher is your time frame, the wider stops will be required - it's inevitable. But with the higher time frames comes a better accuracy for many Forex indicators, which for traders mean fewer false signals and fewer unprofitable trades.
I would try hourly charts for the Basic Fractal strategy.

6) I like using 9EMA method as an entry trigger for many strategies. Here, since you already have 5 and 12 EMAs, you can effectively use 12 EMA as an entry trigger (instead of 9 EMA).

Kind regards,
Edward

hi edy,
am specially grateful for the candid advice you gave me the other time i called.
pls., i haqve something really bothering me again and i hope i can get a code from your forum to resolve it.
my expert trades reversal correctly well making profitable entries at the point of reversals, but it goes on to enter another trade each time it hits the 100 pip target, which eventually and sometimes leads to loss.
pls i need a code that can help me stop it from entering trade on the same currency pair once it hits its first target. i will prefer that it delays trade till the new hour.
thanks and god bless.

Hi,

I would love to one day be able to help with coding experts. But today I'm not yet have enough knowledge on this subject. I'm very sorry for not being able to help you with that. Try asking people at forex-tsd.com:
http://www.forex-tsd.com/questions/270-ask.html

Kind regards,
Edward