Creating a system..

[juicyt]

Do you ever find yourself trying to make yourself a trading system? I always do, like the one pictured below. It looks good on a visual test and has good RR and win rate across the pairs I looked at. The MA is a 5EMA too.

 

 

http://i45.tinypic.com/2vc6afn.png

Edited February 25, 2013 by juicyt

[Freddie]

Super system by the looks of it. I also looked at EUR/USD and that was even better with much bigger wins.

 

Just to help the less knowledgable on the site, could we have a little more information please?

Exactly when are the trades entered? 5 mins before the end of candle or perhaps 5 mins after?

Looks very much like a set and forget. Do we place pending orders?

 

I looked at Nial Fuller's 'Pin Bar' strategy and that puts pendings in.

[juicyt]

Damn Freddie, I haven't gone into it that far.. but I would put pendings at the start of new candle, that way you know where the 5EMA is. It wouldn't matter if you were 5mins late I'm sure, so long as price hasn't come back to the EMA by the time you check the setups.

Check it at the end of each candle/day and decide to either take profit which might be more or less than risk. Or you pull your stop up and let it run. You will get some good runners doing that but you also get some Break Evens. I would use about 40pip stop on GU and less on EU.

 

That's about all I have thought of for now.

 

jt

 

I should point out that in the picture, the numbers 1 through to 12 represent each circle/setup from left to right. Also, just realised my 12th circle got cut off... it was the big winner too.

Edited February 26, 2013 by juicyt

[juicyt]

ok Freddie, here is another one for you to look at. Different ways to manage but still good none the less.

Please understand I have only mentioned 1 way to enter including time frame, you could stretch to 30min chart and have less wins but smaller risk reward. Also I mention taking half off at 2:1 RR, if you didn't you would win bigger at the end of it all but loss more often. Each there own!

 

ok, so my pic is cut off again. What happened was price retraced on pic 1 to about the 72% line. That is all, so from there I switched time frames.

 

http://i50.tinypic.com/bj7ex5.gif

 

http://i45.tinypic.com/1z19rtz.gif

 

Then on this pic, price moved over 600 pips before closing inside the MA's. So trade closed once this happens.

 

http://i48.tinypic.com/1zv2vef.png

[juicyt]

One of the things I try to look for in a system or strategy based mostly off price action is if it can work on lower time frames. This is a challenge, however if you look at the first one mentioned above at a 4hr or 1hr chart or even a 15min chart, you will find if you took the trades that presented.. you would win more than you lose.

 

jt

[juicyt]

Figured I would post another screen shot of the 5 min Eu. With a little smarts, locking in B/E (Break Even) once price closes past your entry, you should be able to make some pretty quick pips. In this case on a 5min chart, I would just lock in 10 pips.

 

 

http://i54.tinypic.com/qpjoly.gif