Trading advice & trading tips

I have been using the forex technical analysis tool of dynamicslevel, and it proved to great useful

your trading methods & ideas for very useful for my trading

Hi Edward,
Thanks for this great site.
I'm a baby in 4x (2 months :)), and found many new perspective in this site. Thank you very much.
The strategies present here very interesting, already try and make several EA from them. my favorite is modified balance system and EMA crossing. BUT the problem is, huge drawdown (DD) (although I don't what DD exactly mean :)). If you have big capital, lets say $1000, $100 DD is nothing, just 10%, but when you want invest as little as posible, i.e. $20 or $50 as i planned to do, that DD become a big problem. So my question is,
1. from your experience, what system produced lowest DD?
2. how big DD is acceptable? I backtested my EA, based on modified Balance System, produced 18,25% Maximal DD, $26,54 Absolute DD, profit $213,37 and profit factor 0.00 in August 1 to August 31, 2011 (1 month). Is it acceptable?
3. what is the difference between absolut DD, maximal DD and Relative DD?

Sorry to be annoying, and thanks in advance.
-T-

always trade with the trend. watch the bigger picture before you enter the trade. that will save u a lot of money and earn u loads of it.. watch 4 hour and daily chart to trace the trend if u are trading hourly chart to trade. its even better if u watch weekly chart .

good luck

Hi Vijoy,

With Parabolic SAR you need to consider buy/sell signals only when the candle is closed. While the candle is moving, the SAR may change from buy to sell for several times in a row.
9 EMA & Parabolic or 9 EMA & Bollinger Bands - yes, why not.

Happy trading!
Edward

Hi
I am new in the Forex Market, but before I enter I studied a lot and found Parabolic has the problem of immediate reversal. I found Bollinger with PARAB works better ( Not perfect). Bollinger should be nested (20,2 and 11,2 ) and when 20 cross over 11 it is a buy signal and it shows in well in advance too. But PARAB is still a problem. Since you found 9EM as another strategy do you think PARAB and EM9 will be a good combination? I haven't tried yet. You may too and will appreciate your opinion. Tks Vijoy

I can find a link to the uploaded file. Can you post it in the comments, please?

I'm a Korean future trader. What do you think about this chart? It's some aid of diminishing the effect of time-frame change. I feel that there are some patterns of boom-and-bust.

Edward,
I am finding this EMA9/55 cross strategy very successful. (75%+)
I have noticed that the greater moves are when the EMA9/55 cross close to a MACD/Signal line cross, but I now also enter crosses when I note that the MACD histogram is moving in the direction a the EMA9/55 cross. ie the histogram must be moving away from the zero line. (If it appears to be peaking I prefer to stand aside and wait for another trade.
I would welcome others input
Regards
Chris

Hi Chris,

the simplest are quite often turning to be the best.

I'm glad you're combing ideas to make own strategy. Keep it up!
This one looks very good. Hope traders will try it & find it useful too.

Best regards,
Edward

Hello Edward,
Thank you for a wonderful site. I have been looking at various strategies detailed on the site and by putting some together have come up with this.
Taking the EUR/USD cross on 5 minute timeframe, I set my chart up with the MACD and EMAs 9 / 55 /100.
Looking to go LONG, I use the crossing of the MACD above the Signal line as my preparation sign.
When the EMA9 crosses above the EMA55 I BUY.
The crossing of the EMA9 above the EMA100 is a confirmation and the crossing of the EMA55 above the EMA100 indicates a stronger trade. (Do the reverse for Shorts)
I then use Scalping System #6 to follow the trade and either wait for that to indicate an exit or for the EMA9 and EMA55 to cross again.
I hope readers understand my description and I welcome their comments, as it almost worries me it is so simple compared with what others detail/use.
Chris
PS. I have my trading screen split in two with one chart show EMAs 9 / 55 / 100 and the other half show Scalping Stagegy #6

Hi Shawn,

I calculate monthly pivots once a month. In December I will trade based on monthly pivots from November 1st to November 30th.

Best regards,
Edward

Hello, I have question for edward or anyone who knows the answer. Do you calculate monthly pivot points once a month or everyday using the high and low of the past thirty days and the close of todays candle. Or is there a different way to do it. Thanks, Shawn

Hi EDWARD,
TRY THIS ON A DAILY CHART:
PLOT 89 DAYS HIGH EMA and 89 DAYS LOW EMA .
SEE HOW PRICE REACTS ON THIS LEVEL AND NOTICE HOW PRICE STARTS MOVING UP SHARPLY WHEN IT CROSSES 89 DAYS HIGH EMA AND HOW IT GOES DOWN SHARPLY WHEN IT CROSSES 89 DAYS LOW EMA.

EDWARD CAN YOU DEVELOP A SYSTEM BASED ON THE ABOVE MENTIONED METHOD.IF YOU CAN MODIFY THIS METHOD AND SOMEHOW MAKE IT USEFUL FOR DAILY FOREX TRADING IT WILL BE OF GREAT HELP.
I KNOW THAT THIS METHOD IS INCOMPLETE AND IT IS NOT PERFECT BUT I STILL WANTED TO SHARE THIS WITH YOU BECAUSE I THINK THAT YOU CAN MODIFY IT AND MAKE IT PERFECT.
THANKING YOU IN ANTICIPATION.

Happy Trading,
Regards,
Arsalan.

Hi Arsalan,

I truly appreciate it, you have good ideas, but regarding this 89 EMA, it is not better than any other Moving average, and with time it won't perform any better than, say, 100 EMA or 80 SMA etc.
The idea about making a channel with High and low values can help with visualizing trend changes and holding a good pause when the average is tested for its strength.
Happy holidays!

Edward