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

Appreciate the feedback!

Happy trading!

Edward

Hi Edward,

The Macd+Parabolic SAR Strategy is excellent for eur/ usd and other currencies also. I also use 5-13-62 ema strategy to double confirm buy/ sell signals.

Thank you

The simpler the strategy, the better it performs.
However, the term "simple" here should be clarified.

"Simple" means, first of all, easy to understand and follow and execute. But also, "simple" means made with high level of knowledge of the market behavior - this part comes with experience.

A simple trading strategy may consist of a considerable number of methods combined to fit changing market conditions, but each method will be simple and straight forward: a method of entry, exit, risk control, detecting trending and ranging markets and so on.

On your learning and practicing curve, you'll see that the more you learn the more features your strategy acquires.

If on early stages you begin documenting favorite trading methods and ideas, in the future it'll become of a great help in sculpting and re-shaping your master trading system.

Elliot + Fibonacci trading is a very powerful combination, but it is also not the easiest one, because there is a lot of guessing and price expectations involved in market analysis. However, if you be able to master it, this Elliot-Fibonacci friendship will produce the most outstanding results, by far the best known to me.

Regards,
Edward

Is there a probability of greater success in trading with more advanced strategies as opposed to simple ones? I'm most familiar with ICWR that combines elliot waves with fibonacci which seems most simple to me, and I'm fairly new to forex. Would I have to study more advanced strategies to increase profits to loss ratio. What do the professionals think?

Thank you.
Here is how we may try working with Slow Stochastic 5, 3, 3:
(still on 30 min though, 5 min should be tested separately).

Ideally, we enter trades only when MACD signal comes first, and then Parabolic SAR dot changes direction.
(If Parabolic SAR advises new trend before MACD lines cross each other, it is better to avoid entering.)
Well, now if we add Slow Stochastic, we no longer need to avoid entering, but only in cases when Stochastic cross happens inside overbought/oversold zone.
That's my thought.

I'd be also glad if someone could code and share with us the automated version of the system.

Regards,
Edward

Does anyone has an alert for this system on meta trader?

Thanks

has anyone tried using Stocastic Slow with this strategy as well? I notice you get K% & D% crossing reliably before MACD does. Also, it seems to have worked well for me at 5min on AUD/USD & USD/JPY. Any Thoughts?

Hi Ugo,

Having Parabolic Sar indicator on the chart I like stops suggested by this indicator. Count two most recent Sar dots and place stop just outside them.

Among other pairs you can try USDJPY and USDCAD.
Some other suitable time frames, you'd probably need to find on your own. I think anywhere between 15 min and 4 hour should be ok.

The system will react to news like any other one. However, with Parabolic Sar there might be troubles: if price swings up and down violently then PSAR will change dots from sell to buy chaotically. Also the recovery process afterward would be longer for this indicator. I wouldn't suggest relying on PSAR during news reports.

Kind regards,
Edward

Hi Ed,

Good work you are doing. i have some questions about this system though so far a very great one.

The Questions are:

1.What is the Suggested stop loss.
2.Does this system accommodate news reports.
3.What other currency pair can work for this setup and what time frame is more appropriate.

Warm regards
Ugo

Hi Michael,

Try using trailing stops once a trade moves in your favor.
Or try at least bring stop loss to break-even once on the positive territory.

You may also use this strategy just for entries and seek exit recommendations from other trading approaches.

Kind regards,
Edward

Hello Edward

I had a question about this system. What I noticed while looking at the charts is that sometimes after the MACD cross, it makes a nice profit but by the time it crosses again in the opposite, its turned into a loss. How would you avoid this? Thanks

Michael

Hi Prez,

There are lots of great strategies in our collection. I'd definitely recommend looking at all Advanced strategies and also Simple ones.
See if you like next ones:
advanced #3, 4 and 5,
simple #11, 14, 16, 17.
Check also our new collection dedicated to MT4 custom indicators at: http://forex-strategies-revealed.com/mt4/custom-indicators-systems

Every system in our collection reveals an idea or unique method of analysing and trading currencies.
Try the following approach: choose one or two strategies you like most, test them, analyse what could be added to improve results, what are the weakest and strongest points of the strategy, and then as you discover new trading methods on this or any other website try to fit them in your base system. That's the best way of making a solid workable system out of available resources.

Regards,
Edward

Update (June 05, 2009): please note, the numbering for simple strategies no longer matches due to recent strategies maintenance.

Edward,

I just found this site today....Love it! Great Info. I particularly like the #11 EUR/USD Simple Strategy, but from your experience is there a simple or complex strategy that you like better or would recommend previewing?

Thanks,
Prez

Hi Neeta,

You've got it right. We are waiting for the SAR to get fixed. MACD should also cross and point in the same direction. We are then going to enter immediately on the open of a new candle.

Regards,
Edward

Hi Edward,
Do you take entry after parabolic sar gets fixed and macd crosses over in the same direction? Do you take entry on the next candle open or at the break of high or low?
Thanks
Neeta