Developing a system #19 (minimum 40 pips a day)

User -

Where on forexfinder.com did you find this system?

Paul

This same method is for sale on ebay
It is sold by a guy who has a website forexfinder.com

Hi Paul, Stewart, Julio, Clyde and everyone else,

I've reviewed and re-read the system, and here is my conclusion:

1. I favor Clint's version of the system (comment #2) for its simplicity, although it differs from Raymond's rules.

2. Regarding Raymond's rules, they're a bit more complex, but at the same time, have got a number of useful aspects which allow more flexibility while trading. Here is how I would summarise it:

Prepare to Buy when 10EMA crosses the 26EMA upwards and the EMA difference is 8 pips or greater.
Prepare to Sell When the 10EMA crosses the 26EMA downwards and the EMA difference is 8 pips or greater.

Now, you don't Buy or Sell right after the EMAs crossover and as soon as the difference in between EMAs reaches 8 pips, but rather employ some patience, because price is going to retrace soon - that's where you want to enter - on the retracement that comes after a crossover.

For example, EMAs cross each other and the difference grows to over 8 pips and continues to grow up to 19 pips. We wait, no entry. Now, the price starts to retrace back: as soon as it makes 7 pips down (19-7=12), you can jump in a trade.
(From myself: you can enter immediately, or you can "trail the entry" the way I do when I look to enter on a retracement. See the image below)

The idea is on a downward retracemet place a Buy stop above the last closed candle.
If the entry is not filled, trail it down to the next closed candle, and so on until you get filled.

Back to Raymond's rules. Another entry opportunity is when 2 EMAs cross and price later retraces to 10 EMA. How it works in numbers? Let's take the same example with EMAs crossing and the difference growing to over 8 pips and continuing to grow up to 19 pips. At that point, price will be trading above 10 EMA, right? But how far from 10 EMA will it be trading? Could be any amount of pips: 3,4,5 pips etc, either way, the idea is that price may need only 5 pips to retrace back to 10 EMA, and those traders who wait for a 7 pip retracement may never see it, because 10 EMA will act as a support/resistance level and price will bounce back from it.
Hope now the 10 EMA retracement makes sense.
At the same time Raymond warns that: with 10 EMA retracement rule, your entry signal bar should be at least 10 pips away from 26 EMA.

The rest is clear:

TIME FRAME: 5 minutes
CURRENCY PAIR: GBPJPY
TAKE PROFIT: during Asian session TP is 20 PIPS
During other sessions TP is 30 PIPS
STOP LOSS: 40 PIPS (I personally believe that it is too wide and should be adjusted to 20 pips at most. A smaller Stop is not recommended for GBPJPY due to its volatile nature, but if you try other pairs, you can set smaller stops to get a better risk : reward)

Now, lets move to Raymond rules that say about stop adjustments with a retracement to 26 EMA within 8 candles.
My understanding is that if, after you entered a trade, price retraces back to 26 EMA too fast - within 8 candles for our rules, it is probably not a good sign, so you should be looking to limit risks. Therefore, if the above condition is true, tighten your initial SL (which is 40 pips by Raymond) to 15-20 pips and, if possible, look to get out at break even (or set SL to break even) and watch as the trade unfolds.

Hope you find it useful.

Happy trading to all!

Best regards,
Edward

This is directed to Edward , User , and Manus 168 -- Obviously you 3 " get it "

I give up . Like some others here , I do not understand Raymond's explanation of the rules for his # 19 , 40 pips system , and I am not getting good results at all . Something is missing , ( probably my brain )

Can you three offer YOUR explanation of Ray's rules , AND put up a CHART of an actual trade? PLEASE !

Gratefully ,

Julio

Looks okay , Raymond , but can you give us some chart examples of some actual trades ?

Clyde

Raymond and /or Edward ,

Hey , guys I am confused .

Ray, on Oct .19 you say retrace at least 7 pips , but on Oct. 21 , you say retrace at least 5 pips ????

Also , guys , please clarify rule about retracing to EMA 26 within 8 candles ! Thanks .

Stewart

Ray and Edward - Seems to be some confusion , among some of the participants , here as

to exactly when to enter a trade .

Do you buy , or sell , when the the 2 EMA 's are separated by 8 pips or more , and then enter AGAIN on a

RETRACE to 7 pips or less separating the 2 Ema 's , ( or reaching the EMA 10 line . ) ??

In other words , do you enter ONLY on the RETRACE ??

Paul

this method is awesome man!
thanks for posted it here..

I have just scroll back the chart, and wow! I can see 2 min opportunity!
happy pips for all!

i update the the system already i hope can help you all

First , i hope you can try it out and give me the result that you can catch.
this system only suitable for GBPJPY only and i have back test it and i get 90% of winning trade and forward test and i get 22 winning trade out of 25 trade but due to i cannot adjust my emotion so i lose it.so here it is important to control your emotion if you want to use this system because in a whole day it can be 5 trade!!!!

TIME FRAME : 5 minutes

Currency pairs: GBPJPY

SETTING: EMA 10 AND EMA 26

BUY: When 10EMA crosses the 26EMA upwards and the EMA difference is 8 pips or greater.
SELL: When the 10EMA crosses the 26EMA downwards and the EMA difference is 8 pips or greater.

CONDITION ONE : when there is a buy trade is emerged (I call it as signal bar,when the price between the two EMA was separate is at least 8) and cross up ,YOU NEED TO WAIT THE PRICE RETRACE AT LEAST 5 PIPS OR MORE OR EMA 10.you only can enter the trade when there have a retrace !!!
For sell trade also same as above but opposite ah!!

THAT ALL.

TAKE PROFIT : IN ASSIAN TIME YOU SHOULD TP 20 PIPS
IN OTHER TIME SESSION TP 30 PIPS
YOU CAN GRAB MORE PIPS WHEN YOU MASTER THIS SYSTEM .TRY IT UNTILL YOU WIN.

STOP LOSS : 40 PIPS

ADDITIONAL NOTE : sometime you need to learn how to close early to reduce the stop loss level.

when you enter a trade and the price after retrace to EMA 26 within 8 candles i say RETRACE TO EMA 26 WITHIN 8 CANDLES.
Adjust your stop loss to 15 to 20 pips and try to break even.

sometime also when a price stop at a price three time you also need to close it early

Don't try to enter a trade near a new announment .

Don't try more than 5% of your capital

don't try to enter two trade in a row except the price stall for 2 hours or more and separate again that is ok.

emm, Blinkers, this system only for GBPJPY pair i am not testing in other timeframe if you can please help me to test in GBPUSD or GBPCHF also in 5 minutes timeframe!!
ok, i will explain it in more detail as below:
BUY: When 10EMA crosses the 26EMA upwards and the EMA difference is 8 pips or greater.
SELL: When the 10EMA crosses the 26EMA downwards and the EMA difference is 8 pips or greater. >>>>>>>>>>>>by Clint
the buy and sell entry is correct but you will always face a lose trade.
WHY??
It is because as i said above you need to wait the price RETRACE to either EMA10 or at least 7 pips.it means a signal come out when the both EMA is separate at least 8 PIPS and second things is wait the price RETRACE 7 pips (at best) or RETRACE to EMA 10 if the closing price of the signal bar is very far to EMA 26 .IT IS VERY IMPORTANT !!!!!!!!!!!!
"very far" means the closing price of signal bar is more than 10 pips to EMA 26.
i have test this system and the most favourable target i can found is 20 pips during Asian session and 40 pips from GMT 5 onward .
the exist point i also not very sure i hope any one here can help me .
ONE more thing you cannot enter a trade when the price is near weekly pivot.(less than 30 pips)
sometimes, you can straight enter a trade when the opening price of the signal bar is less than 10 pips to EMA 26.
Don't trade when it is a news announcement.

Hi, everybody here .sorry for late reply because i got some important stuff to do . Oh, User , i only and only test it in 5 minutes timeframe.Don't try to enter in other timeframe you will lose a lot man!

helo ray can you send me journays in respect to this your EMA method charlydaily(at)yahoo.com

Hello
But do you backtesting in wich timeframe?

I think that there is merit to this system - to clarify, this is how I understand it:

BUY: When 10EMA crosses the 26EMA upwards and the EMA difference is 8 pips or greater.
SELL: When the 10EMA crosses the 26EMA downwards and the EMA difference is 8 pips or greater.

Close the position when the EMA difference has decreased to 7 pips or less.

Positives are that the system lets profits run quite nicely and signals are generally accurate.
Down side to this system is it is obviously trend based (as most are) and in a period of consolidation you will either get no signals or false ones which will be very frustrating.

As for your 40 pips, I would say don't get hung up on acheiving a specific number. Let the profits run and take all that you can get. Cut your losses short and wait for the next trade.

Clint

Hi Ray, Can you explain in a little more detail please..What time frame do you use and can you be clearer on your entry/exit point... Thanks......Blinkers....