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

Hi Edward,
Thanks for the answer, yes you understood my question well. I assume that the same holds true for the MACD indicator, am I right? Another question, is it possible that so many traders use this system that it would stop being effective. This has really been working for me I wonder if it will continue working for me in the future. Thank you in advance for your answers. All the best.
Joe

Hi Joe,

I think I understood your question, but if not, please feel free to re-submit.

If a Parabolic SAR changes direction on a current candle and that candle is still not closed, we cannot enter a trade. Why? Because by reacting too soon we will deliberately accept an additional risk - a candle that is not fully formed(closed) can continue to develop/grow in either direction causing the Parabolic SAR to flip back and forth several times.
We don't want to reset our trades several times on the same candle, that's why we wait for that first signaling candle to close (which often costs us some pips), but that's ok, because in return we have a stronger/confirmed signal to trade upon.

Kind regards,
Edward

Hello Edward,
Thanks so much for posting this strategy, I have applied it to my demo account and have found success with it. I am not sure about one thing. I notice that the Parabolic SAR sometimes switches sides right in the middle of a session other times right in the beginning of a session. Either way I want to make sure that I understand what you wrote to Neeta. If I'm looking at the chart and both signals are pointing in the same direction to buy or sell during the entire session I should just wait until the next candle and enter at the beginning? It seems that if I did this I would miss a lot of pips on some trades. Or should I just wait for the Parabolic SAR to switch even in the middle of the candle session and then immediately enter? I would really appreciate an answer. Thank you so much again.
Joe

Hi,

if you trade on 30 min charts, every 30 min there will be a new market data on your screen, so you could actually monitor it every half an hour, but it's not a requirement. If you have Stops and Take profits orders set for your Trades, you may not need to come back every 30 min; instead, by the end of the day you can simply review your results: with some trades already closed and some still running.

Good luck!
Edward

Performing Forex trading, is it necessary to monitor the screen every hour/30min? Please advise.

Rgds,
forex newbie

sold @ 4:06 PST
Bought @ 8:40 PST
41 pips

Buy signal a few minutes at 8:45PST
Trade is in the green by 18 pips.

ok done posting my trade updates but this system works.

there was 2x i wanted to get out of the position but the reason i sold to begin with did not change so i stayed in and i closed up.

If i would have got out and in again i would have a serious case of whip lash.

ohhhhhhh the MACD is about to cross, here we go again..... gulp lol

thanks for the great site!

I tried forex some time back and totally lost my mind! After getting in to stocks and teaching my self that patience is my friend I am getting back in to forex 2night.

I have these indicators on a 15min EUR/USD chart now along with long term resistance and a shorter period of support.

Hopefully I have more luck than last time :-)

Sorry, vela

I have no idea why his happens.
Have you tried to ask Oanda or IBFX the same question?

Regards,
Edward

Hi Edward

Thanks for sharing the idea. Just one question, the SAR signal from Oanda and IBFX dont seem to be in sync. One showing sell signal whereas another still on upward trend.

Any idea why this is happening. The settings are the same.

Kind regards
vela

Thanks! Good tests, good one.

hi im sebastian

i found this strategy very weird i did some back testing and i found out this , 30 trades without a fixed stop loss would end on 25 pips total gain, but if we add a 30 pips fixed stop loss the total gain for the 30 trades would be around 161 pips, its a big deference huh? now a better one ..if we set a fixed stop loss at 30 pips and also a limit order at 60 pips, where our exits will be if macd crosses back again or if the stop loss get touched that would make all our loses less than 30 pips and our maximun risk would be 30 pips . our take profit would be if the limit order is touched at 60 pips or if the macd crosses back against us !!! i backtested it, for 30 trades our gains will be around 171 pips, so it proves once again, that money management works!!! try it guys !! thank you for this site its been so useful and i have learned a lot , keep up the good job guys !!!

Hi Karl,

SMA - simple moving average indicator can be found on any platform without exceptions. What platform do you use?

Regards,
Edward

I see,
Thank you. That's my problem, I use a micro account so I don't have access to metatrader.

Cheers,
Karl

Hi Karl.

Insert indicator - Trend - Moving average (on Metatrader)
MA methond = Simple (SMA - Simple moving average)

Period = 55

Regards
L~C~G