allangenex
Senior Member
Posts:4202
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| 12 Jul 2009 10:57 PM |
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Hi traders, I would like to share with you a trading system using Exponential Moving Averages (EMA). It is a relatively simple system and i hope to share it with you all. Basically the setup is quite simple. I am using 4 EMA and MACD.
Below are the SETUP procedure:First: 1st MA line: Set period to 5 and MA method: Exponential 2nd period: Set period to 10 and MA method: Exponential 3rd period: Set period to 20 and MA method: Exponential 4th period: Set period to 30 and MA method: Exponential Second:Insert a MACD indicator with the following settings: Fast EMA: 5Slow EMA: 31MACD SMA: 1Trading Signal Strategy:When all EMAs touch one another and MACD line touching 0 from below, it should be a BUY signal. When all EMAs touch one another and MACD line touching 0 from above, it should be a SELL signal. Currency applied: EUR/USD, GBP/USD Time Frame: 1 Hour Below is a picture suggestion of how you should enter trades on EUR/USD:  From the chart, you can see several signals. I only point out 1 Buy and Sell signal as example. |
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maungv
Senior Member
Posts:1475
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| 12 Jul 2009 11:12 PM |
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wow, nice thread :0 thanks for share it with Us, first impression : a powerfull and yet it is easy to understand.
btw from your chart I can only see 2 ema.... |
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allangenex
Senior Member
Posts:4202
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| 12 Jul 2009 11:21 PM |
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 Hi Maungv, not sure why that chart turns out that way. Could be due to the the saving quality of the jpeg file. Attached another one above. Hope that it is better in viewing. Basically there are 4 colours line (blue, white, red and cyan). |
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allangenex
Senior Member
Posts:4202
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| 12 Jul 2009 11:40 PM |
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 This chart shows an example of my trades now using the strategy on EU. |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 01:06 AM |
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 A little update on the trades: Gain positive pips on the 3 trades (last 3 orders from the table), i move my stop loss to +1 and set trailing stop loss of 25 pips. This is a more conservative approach towards closing orders. A more aggressive is not to put trailing stop and close trades when a divergence starts. |
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maungv
Senior Member
Posts:1475
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| 13 Jul 2009 02:01 AM |
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wow thats avery good result.... I will take acloser look on this thread and try the system  |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 02:11 AM |
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 Updates as at 2pm (GMT +8).  |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 02:37 AM |
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 2 of my orders hit stoploss (trailing stop of 25pips). Left one order to go. It is kinda expected as 2.15pm (GMT+8) usually involves some violatility. As i use conservative method, the primary thing is not to lose any pips (not even 1pip). |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 02:57 AM |
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 All orders closed and hit trailing stop loss. The table shows the amount gain for this so far. |
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farizu
Forum Moderator
Senior Member
Posts:3194
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| 13 Jul 2009 05:10 AM |
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Nice thread allengenex, please do keep us posted on the performance of this method. If after one week the performance holds up, i may start using it on some demo contests :-) |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 06:00 AM |
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Thanks. I am now waiting for the next signal at 1hour. Most likely a buy signal. Cannot confirm as the MACD doesn't want to do up. Ha..  |
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maungv
Senior Member
Posts:1475
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| 13 Jul 2009 06:58 AM |
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allan, have U ever try it in other pair? and... in this system there is no target Provit rite? just use trailing stop to secure provit we gain |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 07:44 AM |
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Yep tried in GBP/USD too but not today. Will be looking at it this week. For the take profit, i use trailing stop. Another way is to look at the divergence. There are some risks involved at MAs and MACD are lag indicators, there may be not enough 'time' for you to exit in profit. Basically i secured 1 pip the moment i have 15pips and above. Once reach, 25pips positive, i start using trailing stop. Hope that it is easy to understand. |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 07:56 AM |
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 If anyone is following this system, there should be a buy signal here. I miss out this trade as i was travelling on the road.... Argh... Well, there is always another time to trade. |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 07:58 AM |
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One thing about this system is when you miss out the opportunity to enter trade, do not attempt to trade even if it retraces back the supposedly enter price unless you see a confirmation from the MAs and MACD. |
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maungv
Senior Member
Posts:1475
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| 13 Jul 2009 08:30 AM |
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yes this should be easy to understand thanks allan |
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maungv
Senior Member
Posts:1475
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| 13 Jul 2009 08:48 AM |
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 hi allangenex, plz evaluate my chart |
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farizu
Forum Moderator
Senior Member
Posts:3194
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| 13 Jul 2009 09:12 AM |
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Posted By allangenex on 13 Jul 2009 07:58 AM
One thing about this system is when you miss out the opportunity to enter trade, do not attempt to trade even if it retraces back the supposedly enter price unless you see a confirmation from the MAs and MACD.
allan, what pairs have you tried this strategy on so far? Is it any good on our favorite pair gbp/jpy? |
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alice
Senior Member
Posts:1287
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| 13 Jul 2009 04:28 PM |
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thanks' for share, have a great time reading your chart here i'll try to used it, see how will this work on my side. |
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allangenex
Senior Member
Posts:4202
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| 13 Jul 2009 09:11 PM |
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Posted By maungv on 13 Jul 2009 08:48 AM
hi allangenex, plz evaluate my chart
Hmm.. the vertical line that you've drawn should be a vertical and not a slant line. Below is an example.  Hope this is clear. |
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