Forex trading strategy #9 (Teodosi's Moving Averages tunnel)

oh I am sorry, reading through the post I have seen answer to my question, thanks

Pls what is WMA, Can anybody help me?

so now,does it still work or not???

Hi SID,

Absolutely great work! Thanks a lot for this valuable contribution!
I'll be curious to check it out too.

(I couldn't find the second file, but anyway, it's an interesting stuff to evaluate)

Best regards,
Edward

Sorry forgot to write my nick :)

greetings from Lithuania

SID

Hello guys!

I liked this strategy really very much it looks me profitable for short time until i have tested it with FSB(forex strategy builder).
I've configured FSB just like Teodosi told at the beginning of this thread.

I've attached 2 strategy overview files to my post:

Account balance(in pips)

Statisctic
Statistic and overview of this strategy

------------------------------------------
Symbol: EURUSD
Time frame: 1 Hour
Tested period: 2009.01.02 - 2010.02.19

Overall result:
Account balance: -62 pips
Minimum account: -736 pips
Maximum account: 189 pips

*more stats in 2nd file
------------------------------------------

Maybe i am mistaken in something but as we see results is not so good :(
Anyway thanks for sharing this strategy. Maybe on another TF or symbol pairs this one will work better.

Thanks Edward and Teodosi.

Hi toju,

A reversal comes only when the market exits from the oversold/overbought territory, but never when it enters it or trades inside it. While inside the oversold/bought area, the trend is not & never over; it is, in fact, only starts to pick up its strength (if there is any potential/reasons to continue). Your reaction should be to tighten your stops significantly. If the trend accelerates while in oversold/overbought territory, the stops will never be threaten; but should the reversal come in, your stops will protect you.

Check out the following exit technique with CCI in oversold/bought:
http://forex-strategies-revealed.com/money-management-systems/cci-exit

Best regards,
Edward

helllo Edward,
am a newbie and your site has been most helpful, but i still have some challenges i think you can help find the solution.entering a trade when a trend is just begining is easy, but what should i do after two or three days of a particular trend,should i still trade along the direction of the trend or wait for a reversal since my indicators are telling me the pair is either overbought or oversold.But sometimes a trend goes on for days.Thanks ,your advice will be most welcome.
toju

Hey Andy,

nice examples, but what if we look at it from yet another angle:

as long as you're in profit - exit on the first signal from MAs.
as long as you're in loss - keep on trading till the red MAs crossover proves you were completely wrong.

Another favorite concept of mine - when I see a long candle in my favor, I'm closing half of the trade few seconds before this candle is closed. I feel it's a good method to satisfy both the greedy and the scared side of mine, so that I never lose a profit opportunity I was given, it calms me down and allows to exit with another half whenever I feel ready.

FD

Its a good system for the 4Hours GBPJPY, but confusing for the 1H

Hi, sorry again, i think its better to attach a screenshot.

Let look at "A" -Buy , there are Exit 1, 2, 3 , 4. ( we can exits at 1 or 2, BUT we can earn more pips if we EXIT at 4)

Let look at "B" again - SELL, normally we will locate the EXIT point and make an exit. ( since its a ongoing live graph, maybe we intend to make a higher pips, thus wait for ANOTHER EXIT. This time, the trend is moving upward. In another words, we losing pips now)

So my conclusion is, how are we suppose to at least 70% predict there will be how many bend?
"A"-there are 4. BUT as for "B"- there are only 1.
Thus if we missed the intercept of WMA5 WMA12 (B) we will be losing pips for at least 1 or more days..

HI, its really a easy and good system. But the point is, how are we suppose to predict the period. Example- BUY* when are we suppose to make a real exit,(when the first WMA5 touches WMA12) But u might get even more pips if u wait for another WMA5,12 cross over.

It can appear to be a long bend.

ANDY.
Thanks

Your best choice would be 1:2 risk:reward or higher.

But, before you try to capture the required amount of pips, you should know how much the market is willing to give you at any time.
So, say 35 pips SL is ok. But how much can we ask for when looking for a TP.

I would suggest reviewing my earlier posts about using Daily Range Average values and the custom indicator to help calculating it - Daily_Range_Calculator.mq4

http://forums.forex-strategies-revealed.com/stop-loss-for-crossover-stra...

Hope you find it useful.

Best regards,
Edward

hi,

thank you for sharing your great system.
I just wanted to know what money management methods you use for your system, like SL or Take Profit.Is -35 pips SL ok?-how much Profit should I expect?-100 pips like somebody sayed before?
I am just a greenhorn ;-D

When you place a Moving average indicator on the chart, in the settings change MA method to Linear Weighted to get WMA.

I'll try to explain the controversy to another User:

"Always close your position when boundaries of the red tunnel cross eachother
or when they become so narrow that they are one!"

This explains what to do, while in a trade. Narrowing tunnel precedes changing trends, while crosses MAs is the actual time of a change.

"You should only open a position, when the red tunnel is extremely narrow or crossed!"

I believe the author meant that your entries in the opposite direction should follow only after the period of a narrowly traded tunnel or a cross. When you open your charts and find tunnels trading wide, it is not the right time to enter a trade.

Cheers,
Thomas