Complex trading system #4 (Trend trading with EMAs)

Hi Tony,

:) I understand your situation, it is difficult to stop on one trading strategy.
Try next:
Use advanced #3 on daily charts (daily time frame is a recommended one) - it won't produce many signals and will require only a minute a day to glance at charts.

In the meantime take Complex #4 (1 hour time frame) and run it alongside with Simple #9 (1 hour time frame as well). This way you'll be able to compare the signals and results for both trading systems simultaneously.

Regarding the scalping strategy - you can try it any time later, any time you have few hours and wish to play quick entry-exit game.

You've noticed it right, majority of indicators are lagging. Moving averages, RSI, Stochastic can't in many cases pinpoint the very top or bottom of the price and overall trend reversal, but, on the other hand, by delaying market entries and exits, the lagging factor keeps traders away from sudden and unconfirmed price shifts, providing a signal only after a price has been settled down.

Best regards,
Edward

P.S. While testing various Forex strategies, write down for yourself the moments you've liked the most, for example, the best indicator for entries, the best method to exit a trade. When you return to it later, it'll be easier to review/refine the favorite methods, instead of starting it all over again; with time they'll grow into your custom made trading system, where you will have confidence in each and every step you take.

Thanks , Edward for your advice .It should help.

Tony

Hi Edward, do u think we can use the 5 min time frame during 1300 to 1700 gmt hours?
Thnx Robin

Hi Robin,

I don't know really. It requires testing. But the timing (13:00-17:00gmt) would be just right for this test.

Kind regards,
Edward

Thnx Edward,I really appreciate you for taking the time to answer these questions.
Robin

Hi Mike,

I haven't succeeded in forward testing. The system never took even a single trade.
(I've double checked that live trading was allowed and that the EA was running), but I've got no results...

Regards,
Edward

hi Edward,

I am intrigued by the comment from the bank trader ? what does he mean by the 150 & 365 hour MA's

Well, I don't trade for a bank, but it is possible that they use mentioned moving averages to identify main trends. Obviously 365 MA is used to see the large trend while 150 for an intermediate term trend.

I can add that 200 SMA and 50 SMA are ones that are commonly used among professional traders.

You would use any of these MAs to find support/resistance levels. Where price approaches a Moving average, an active trading zone emerges - traders start actively initiate new trades based on whether they feel that support/resistance is going to hold or will be broken.
All-in-all you would trade it as any other moving average you used before, with the only difference that you can pay higher attention to the MAs mentioned here as you can anticipate that banks and expert traders are becoming highly interested in price action around these moving averages.

Regards,
Edward