Forex trading strategy #3 (EUR/USD simple system)

Here is one to upload:
MTF_SR.mq4

More MTF_SR indicator, it will help considerably.

Thanks everyone.

Didn't read entire thread as I'm doing 4 things at once, but we may want to add force index as added filter. Use it at default settings and only trade if it agrees with direction.

Ok are u using meta4trader platform, if yes then goggle for "GOOD MACD" indicator on the internet and install in the mt4 platform.

thanks for sharing...looks convincing. but when i try to follow the set-up steps above, I only have 1 instead of 2 lines on MACD Lines? can anyone explained. Thank you.

Hi
Buy when Macd crosses above Macd signal line( below 0 ) and

Sell when Macd crosses below Macd signal line ( above 0 )

do we require macd cross only under zero line in order to enter buy signal and opposite for sell?

Hi Edward.

You really have nothing to gain by giving up your time to post comments here and yet you provide me with such a conclusive response to my questions. You are genuinely a really good person! Thank you!

Now..............what have I been doing wrong? I took a bit of time after reading your response to see if I could identify any possible causes. I went over the system and to the best of my ability I have been following the rules in the same way as when I was doing well (last month)

What I did discover after reading the whole thread again was that I am not taking any note of where the MACD cross has been occurring. When You originally noted that the cross should take place above or below the lines for a stronger signal. I did some back testing at the time and discarded the advice because it meant I would also miss many good trades because of it and the advantages did not seem that huge at the time.

In hindsight, recently it would have had a fair impact on the amount of losses I would have taken. I would still be down, but not to the degree I am currently.

I also noted that while trading 1 hr charts I have an 8 hour period while I am sleeping where I cannot tighten stops, also resulting in larger losses than I would have taken had I been at my charts.

My approach now: I have always loved trading a 4 hr chart, there is much less noise and to me it gives a better picture of the overall direction of the market. last night I did some back testing on a 4hr chart taking the MACD cross level into account and only trading the "stronger" signals the results were very promising. I have also included another filter which I will reveal if it works.

Things in my life are a bit hectic right now and the 1 hr time frame is a bit awkward for me to be at my pc on the hour every hour. I watch the charts all day but I have a lot of interruptions so I am going to trade the 4hr system for the moment. That will give me a chance to step back a little bit and still keep in touch with the markets.

I will let you know how it turns out.

Yes, your understanding of buy and sell signals are correct.
I like stops suggested by Parabolic Sar indicator: place your stop just outside the most recent but one SAR dot. Trail it with each new SAR dot.
You'll be taking profits/exiting when MACD lines cross again or your trailing stop is triggered.

Kind regards,
Edward

hi Edward
what is the required stop loss and take profit for the forex trading
strategy #3 (eurusd simple system)
now to the trading system, buy when there is a cross in macd below zero line
heading up and parabolic below price and sell when there is a cross in macd below zero line heading down and parabolic above price.

Hi L~C~G,

the losing streaks do happen, but what's often also becomes a problem is that traders lose some of the earlier discipline. In your case could it be that you've started to take signals from both time frames simultaneously, or may be peaking at other time frame to find clues about the probable signals or warnings, which has affected the performance.

If that's not the case, then I would also review the decisions you took after a week, 2 weeks of losing in the market. Have you tried to step back and evaluate what's affecting your trades?

Since you now have the experience of winning in Forex, you should focus on preserving your wealth in the long run.
Your long term trading success, besides the discipline and a good strategy, would also depend on the decisions you make when being challenged. For example, market can become seriously unstable and difficult to trade during certain financial disturbances on the global scale; at those times no strategy rules would protect you, and once you learn that the losing streak persists, it's time to make a pause and re-think, wait it out or temporarily change the strategy.
This is where we all are different, and where one trader gives it all back, while the other works the ways to respond to the challenge.

Kind regards,
Edward

I had two successful months trading this system and this month I have lost everything I made in the last two months plus a fair bit. I am still following the system but right now I dont know what is going to happen. I trade on the hour chart, I found that the 30 min chart gave to many false signals. Should I be trading 30 mins or should this work on 1 hour?

L~C~G

Hi Jordi,

try using this one for MT4: Good_Macd.mq4

Kind regards,
Edward

Hi Edward,

I try to fit in the MACD, but mine MACD looks different, than the one in your example..
I just got 1 trend line en wave bars....I missed the second line...(the crossing line) but i see no gaps within the parameters....Maybe you have a suggestion?

Regards

Jordi (Netherlands)

Hi Joe,

Correct, the same rule applies for MACD: upon getting the first signal from MACD we have to make sure the candle where the signal has occurred is closed.

There are millions of strategies used by traders, so it's very unlikely that any particular strategy would dominate the market. But even if we assume such possibility, for every developing trend [when many start using the same signals], there is very soon a new counter-trend born, so the balance is always present.

Kind regards,
Edward