Scalping system #6 (EMA Bands)

Thank you Edward.
It leaves too much place for discretion and hence emotions.
I often opened position as soon as yellow broke and cleared red and opened just on the edge of the breaking candle. In most cases I got stuck there hanging while waiting for a price to come back. In many cases it did. In many it did not. So, now I open position after the candle retreats to take better position further from the edge. The second entry rule is not very reliable either. It is better to wait for a second candle after the one that closed above/ under EMA 3 to confirm trend confirmation. Generally, this set up is really good to show where the price is moving but strategy should be refined of course to become truly complete and automatic. Right now, I believe it is 50/50 system / discretion. and if stop loss should be 40-50 pips, it is better to avoid taking position or to wait until some support/ resistance level appears which is more favorable.

Serge

The strategy lacks some details, because there are lots of nuances to cover. It is a visual method of trading and the more you look at MAs behaviour the more patterns you can find.

Money management remains one of the biggest challenges. When looking to take 10 pips in a trade, it is irrational to risk 30-40 pips for it.

Yellow MAs could cross and later "uncross", which would be a false signal.
When looking back at charts however, such false crossovers cannot be seen.
The distance, the angle of the crossing MAs remain an unknown territory as well.

I know that everyone would be glad to hear a possible solution, but I'm afraid, I won't be able to suggest anything new at this moment. I'd appreciate everyone's help and ideas.

Best regards,
Edward

When I traded with $250 account with Oanda, I came to conclusion that good size is 400-500 units, it is generally 5-6 cents 1 pip worth.
It really helps to preserve your funds and you sure can make good returns with very low risk. Generally, I divide my account amount on 4000-4500 and this is my pip worth.

I also have a question for Edward.
I have been trading this system for a while. i tis really good, but I do not think it is complete strategy yet.
For example, according to the rules, i sometimes have to set stop loss 40-50 pips away. Should I actually take such trades? Or for example, when 5 minutes Yellow EMA's crossing EMA 55. There should be clear distance between them and 55? How big should it be? also, I noticed that when in 5 min frame I open position when all yellow crosses red but runs practically parallel to 55 EMA, it is a great chance that the trade won't work. Should the way how green crosses red also serve as a signal?
Another thing. If this strategy tells take 10 pips when yellow crosses red, but stop loss is 30-40 pips. It is sometimes if I have to follow rules setting stop loss 5 pips above or below the highest high or lowest low. Risk/ reward in this case not good.
But the strategy is solid. Just needs more details.

Thank you Edward in advance.

I agree with your comments, Clint.

If you move to a smaller time frame, like 1 or 5 minutes, you need to trade a momentum. Heikin-ashi with a new tail against the trend is good, RSI as a momentum indicator is a good choice too.
ADX would lag, but overall it'll serve as a general guidance for ranging markets.

I'm glad you're doing a research of your own, from my experience it never failed to bring new better ideas and results.

Best regards,
Edward

( Edward Not sure if my last post went through. It was not

confirmed.This might be a Duplicate. )

Anyway..... Avanced Method #3 , Daily charts the Stoch. works fine for

exiting , BUT

when testing this

using 1 or 5 minute cand. , Option # 1 , using Stoch. for taking profits ,

you exit your trade too soon. Using RSI instead , as an example ,say you

are Long, do not take profits when RSI hits 80 . You WAIT until RSI crosses

80 and then re-crosses 80 going down , During that time the trend usually

continues AND as confirmation that it is time to exit, the Heikin- Ashi candle

almost always CHANGES COLOR , or flattens down ,or picks up 2 tails , ALL

of which indicate the trend is ending .

I hope some other people on this forum will give this further testing.

I used EUR/USD.I also added ADX ( 10 ) with 20 or higher value to avoid a

ranging market.

I am somewhat apprehensive and intimidated about modifying a proven

method like Advanced # 3, but moving from Daily to 1 and 5 min.

sometimes require some changes

Clint

No need to do that, Paul.
20:1 is a good low leverage.

Regards,
Edward

Darn it , Edward , I forgot to ask you about leverage. I am at 20;1 with Oanda. Should I lower it to 10:1 until my small account increases ?

Paul

Edward, Thanks loads for detailed advice. It should help others here also .

Paul

Hi Paul,

First week is a trial week.
Start with 1000 units, you'll earn approximately 10 cents per pip.
Your goal will be to keep the account above $300 by the end of the week.
If you go below your initial deposit, take another week to repair the account with the same 1000 unit lot.

If you are consistent and profitable and don't go below $300 over a week time, rise a lot to 2000 - 3000 units (20 - 30 cents per pip). Trade this lot till you make a profit total of around 500 pips (approx. $100 - $150), or any other goal you choose.
From there you will know that you have an extra cushion - profits you've earned.

Then you can choose what to do next with the profits: keep them and continue trading the same 3000 unit lot or risk them by rising your lot size again, but no more than to 10,000 units. Trade this way till you double your account and withdraw the amount equal to your first initial deposit.
From there you have qualified to do whatever you want with the remaining on your account balance :)

It is very important to preserve your initial deposit, therefore every time you return to $300 mark due to losses, lower your lot size and start again.

Happy and Profitable trading!

Edward

Hey Edward

Just opened a small account , $ 300.00 with Oanda . What number of units should I start with ? 500 ? 5,000 ? or ?,

Thanks ,

Paul

Hi Betty,

Never tried.

Regards,
Edward

Edward,
What's the deal on Robot Trading, like Fap Turbo ? Does it really work ?

Betty

Hi Nils,

I think you could try to lower to RSI 10 or 14.

Regards,
Edward

Edward= Forgot to ask , should I use RSI 21 with 1 or 5 min. time frame on Complex # 4 , or a lower RSI ???

Nils

Hi Nils,

Sure, you should try it.
Moving average based trading should work on any time frame.

Regards,
Edward