Forex trading strategy #8 (Teodosi's simple system)

This Forex system was sent us by Teodosi.

We are proud to have such users willing to share their thoughts,
ideas and systems so that others can learn and trade Forex even more successfully!

Thank you, Teodosi! Your contribution is greatly appreciated!


"Hello guys i`ve been using one very profitable system and i want to share
it with all of you. If anyone has any suggestion i`m open to hear something
new to add in it.

This is my system.

I use 1h chart on GBP/JPY with Stoch(5,3,3) and RSI(7). My idea is this ...

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thank you for the EA!
I'll have a look at it next week and leave my feedback.

Best regards,

Hi Edward and PNA- I backtested the EA from January 2009 to present and got very negative results. This may be a system that demands a hands on approach instead of an EA. Don't know. Rebecca

Hello KP,

No, it works like a regular EA. That means you have to use the Strategy Tester (Ctrl + R in metatrader), and select a pair and a period to perform the backtest.

The purpose of an EA is either to do some backtesting in order to evaluate the system performance on any pair, or to automate trading with a live account. Do not use this EA on a live trading account yet, it will probably give bad results as it requires some optimizations.

Finally, this EA is not a full implementation of Teodosi simple sytem, and do not include the RSI indicator. If you think that adding this indicator will give better results, I can try to add this on a future release.


Hello PNA once i have installed the expert advisor do i further need to look at the rsi and stoch to place a trade. Thanks kp

Hello PNA, thanks for the explanation mate. Does it only work with GBP/JPY or will work well with other pairs too. thanks once again for the EA have a nice weekend

Hello KP,

In fact, it's an EA not an indicator (it opens the trades automatically), so drop it into the experts folder instead of indicators.

It will help to backtest and find potential improvements.


Hello would want to know if other time frames suits this strategy.
PNA i am not sure how the TS.mq4 indicator works i have installed it into mt4 but cannot see any indication. Thanks

Hi KP,

1. These pairs are just right to trade this strategy with.
2. Do you use parabolic for stops? If so, that's good. For entries, however, Parabolic will be late to confirm it.
3. You don't need to wait for the next candle. In an uptrend, if the action is taking place near the outer Bollilnger band (20, 2), Stoch and RSI are in place, then when you see the first black candle that closes half way through the body + shadow of the previous candle, you go in. The candle that tries to make that "half way" move cannot use its shadow though, only the body counts.

Teodosi simple system

4. Try not to take any new trades after 5 pm EST and till midnight. On Fridays stop trading at 2-3pm. On Monday stay aside till 8 am, take trades on Monday only if there is a good trading opportunity is spotted.


Hello Edward, thanks for your reply. I would further like to know about this strategy
1. I am using this strategy with GBP/JPY, EUR/JPY, USD/JPY, GBP/USD, please let me know if they are the right pairs to trade this particular strategy.
2. I am using parbolic indicator with default parameters.
3. I will enter a sell trade when on an uptrend i see a black candle and the next candle closes at the half way mark (does the shadow count & can the next candle be a white candle).
4. Is there any good time to trade all the above pairs considering this strategy.

Hi everyone,

As I said in my previous post, this system is not obvious to script. Anyway, here is a basic implementation of Teodosi simple system.

It waits for stochastics to cross below/above OB/OS zones, and then check if a valid candlestick pattern has been formed, and finally open/close positions.

You can download it from here : TS.mq4

I'll try to update it as soon as I get feedbacks or improvement ideas.
Happy testing :)


Hi all,

I'm a novice trader, but a confirmed software developper yet :) The reason why nobody posted an EA for this system is probably because it's subject to human interpretation, which does not help for writing an automated trading system.

Well, if someone creates a custom system 100% rules-based basing on this, I can write an EA for you. Here is my email : sugarcube667(at)


Hi Dirk,
There were many instances already when I regret that I'm not a programmer :(
I'd be really grateful if someone could make an EA for this system and publish it. There will be many grateful traders, I'm sure.

Best regards,

Hi Edward,

Then have to do it myself... as do not have the time to look too much on the charts, but the system itself looks promising. Will let you all know when have something ready, maybe someone would be interested to participate?

Best regards,


Hi Dirk,

I guess those who had programming skills have already coded it :), but kept private. I haven't seen anyone posting it.

Best regards,

In some earlier post someone mentioned that would be programming an EA for this strategy... Does anyone know if this has been made available via some forum. Could not find it here at least..




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