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

Hi Edward.

Thank you SO much for giving me some feedback. Ill give that a try and see how it goes.

Regards
L~C~G

Hi Edward,
Thanks for your previuos comments. I know I should learn to be more patient, especially since I haven't found a profitable system that works for me yet.

With regards to your most recent comment: Is SMA an indicator? I can't find that one in my trading platform. I added an MVA 'simple moving average,' but it is not measured with those values.

Thanks,
Karl

We need some direction bias for sure: try adding 55 SMA.
With it, take only Buy signals when price is above 55 SMA and only Sell signals when price is below 55 SMA.

Let me know.

Kind regards,
Edward

I trade this sytem as per the original system outlines. In addition I use a 15 pip trailing stop. At 15 pips I close out half the trade and obviously the stop is at break even. I then let the balance of the trade run and close it out as it runs further.

Im going out of my mind here. It is like drawing blood from a stone. I make a few good profitable trades and then give it all back again, then make some money back and give it all back again. Is the Eur/Usd particularly unfriendly to trade at the moment or am I doing something wrong. Please Please Please help me.

I have been at this for many years now and my last system which was profitable for 8 months ran into trouble and nearly wiped me out. I desperatly need some help.

Hi Karl,

Quite possibly; the idea stays the same though.

Oftentimes, however, you need to have lots of patience with Forex in order to win. Compare it to the jaguar waiting patiently for the best possible moment to catch its pray. It could take hours in hiding to strike once.

Best regards,
Edward

Would this system also work on a 15min chart? I'm far too impatient to wait for the results of a 30min or hour chart.

Cheers,
Karl

Hi Bauyrzhan,

I'm not sure what you've meant by "steam", but
the strategy can be tried on other pairs and time frames too.

Best regards,
Edward

Good afternoon,Edward!!
Whether it is possible this strategy will apply to other steam on Forex?
Bauyrzhan

No, sorry, I don't.
Try these links:
http://www.forex-tsd.com/46758-post1.html

Kind regards,
Edward

Do you know how to create a custom EA for Metatrader 4 so that I can get an SMS text alert when the MACD crosses above/below 0 and the Parabolic SAR gives a buy/sell signal so that I do not have to wait at my computer all day?

Yes, it should work on 1 hour.
For a better result, the profit goal should be inline with average daily range every currency pair is able to produce.

Check out those approximate numbers in order to give your currency pair a fair chance to reach the goal (if set for 1 day): Forex currency trading range.

Also, if you trade on MT4, you can download and use the following custom indicator, which will suggest on the profit targets reasonable for every day.

Daily_Range_Calculator.mq4

Happy trading!
Edward

Hi Edward,

Thanks for the quick reply! I don't know if you answered this already but if you did I am sorry. Would this strategy work on the hourly chart? I am planning on entering on 1 hr and using 45-50 pip stop losses to try and catch those 100+ pip moves so that way I can pyramid and bring in loads of cash. What is your input on this?

Hi Chad,

thank you for your feedback.
Exiting on 15 min chart is not a bad idea; if you're comfortable with taking profits that way - do it.
I have so far no additional ideas about adding new indicators to this particular system, I think, as you said, working with S/R levels could give you an extra edge.

But, on the other hand, see if you like this MT4 indicator for entry confirmation:
wellxAMA.mq4.

The color of the dot will show you a trend in which to trade with SAR signals. Whenever a dot is missing - it is an indication of a range ahead, however, as long as you have no new color dots, stick to the previous trend.

At this stage, when you're comfortable with the general idea of using the system, you can experiment with it, mount new tools etc - that's my favorite part of any strategy I work with.

Happy trading!
Edward

Hi Edward,

First off, I have had 3 successful trades in a row using this system! What do you think of entering on 30 min charts and exiting based off of 15 min charts? That way you know for a fact that a new trend is forming when entering, but you will be able to preserve pips when waiting for the signals to say exit on the 15 min chart. Also, what do you think would be another good indicator to add to this system? I have found it good to wait until the market reaches a support or resistance line and then wait for the signals to show buy/sell to make it a higher probability of having a positive trade.

Chad

Hi Lloyd,

yes I would, but only if that was the very first retracement since my original entry.

Best regards,
Edward