simple & easy profitable 1H strategy...
The old KISS principle (keep it simple stupid) thanks for sharing, are you using this system with a live account? how is it going?
I think your system has good value, clear entry and exit signals, using the 1hr chart picking the trend has good merit
A reader asked me a few questions on some technical info i left out in my 1st post so i have pasted my reply in here for you all to review.
Wanelad- you are absolutely right on this, this is a stupid simple method but it works like a charm! I feel that when too many indicators are involved trying to predict price movement through advanced algorithms has its place but can lead to a false sense of confidence in the trade signals it magically provides. I tried out a MT4 signaling program that was leaked on here a few days ago and i have to say i was pretty impressed with it. it looked cool! but looks aside it had a 40-50% success rate and in my opinion overly complicated and unnecessary when my simple method has a better percentage.
If i am leaving anything out let me know.
1. for stop loss i would recommend a trailing sl at the recent high before the cross.
take profit is a tricky situation in this strategy. the trick is to exit when there is a re cross of the MAs and we do not know when this will happen whether its 20 or 200 pips away. i personally do not use them but if you set your trades over night i would recommend using them as a precaution of loosing the exit signal while you are sleeping and having the SL catch you on the retracement.
2. always enter a trade after close of candle, thats something you should always do.
3. MAs are applied to close
4. I discovered this system a few months ago. i have used it and back tested on all main pairs and found consistent results. im not sure why but it seems to be extrordinarily accurate at detecting entires and exits for long and short term trades with a high probability of success (90%+) success. i am currently experimenting with various other indicators to increase this and perhapse confront the two main weaknesses of the strategy. because we wait for a cross to close the trade we inherintly loose a portion of pips on the draw back so i am looking for a reliable indicator corelation to address this without pulling us out during a support/ressistance test on the trend which happens frequently in this strategy and is even an indicator of a stronger long term trend. i am not sure if this can be done though.
the second issue is dealing with weaving. as with the 1st problem i am investigating indicators to spot possible weaving to avoid entering a weave and subsequently exiting with a loss because of it.
even with these two issues the system is very reliable and profitable because of the nature of the strong trends on the 60 min.
What time frame do you use Oils? Oils you wouldnt happen to have an ea that alerts end of time frame? eg can set for hourly and on close sounds an alarm. I know you are all for manual calculations etc however can get a bit tedious waiting for the minutes to tick by.
Dboit I have set these two averages and will follow them for a while to see. Last night too many closed bank days which gave no movement in the markets, the M.A. you are using probably act as their own support and resistance areas thus when closes over is possibly seen as a break out
I have noted that when using MA cross overs it is quite uncanny how the market responds
can someone please help me set up this strategy i cant find the ema and linear weighted one in my indicator list
this strategy is great and simple, does any indicator can be use to make sure the entry trade? (MACD, CCI....?)
its a quiet old system but yet simple. thank you for reminding bro...
I'd rather stick on old and simple yet proven strategy. Thanks with this informative strategy.
Here's one for the EUR/USD.
1000 GMT
High 1.3721
Entry 1.3731
+50 pips @ 1500 GMT Move stop to B/E
Trade currently +17
hello - where can one find the linear weighted average on MT4?
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Hi all,
This is my 1st post so be gentile. I have seen that there are so many advertisement on these forums and what not trying to get you to use the newest EA and other crap with promises of impossible gains. Well I can assure you I dont want your money. I would rather use my time trading my system than trying to trick you into sending me money via paypal.
THE SYSTEM.
5 linear weighted moving average
21 ema
THATS IT!
RULES:
using 1h candles on any currency pairs during overlapping trading hours wait till the 5 lwma crosses the 21 ema and enter your trade. exit trade when re crosses and repeat. obviously for a buy signal wait till the 5 lwma crosses the 21 ema moving up and then sor sell do opposite.
Important rule!!! only exit trade when there is a cross over, it will get close many times if it is a really strong trade, this is what we want! if you enter and the lines cross within 2-3 candles of each other the market is horizontal and wait it out till you see a cross with 2-3 candles and no signs of weaving.
Guys the proof is in the charts, load this into you platform and you will see exactly what im talking about. its kind of scary as to how well it works.
feel free to send me a PM or something of You have any questions otherwise Ill do my best replying to posts here.
P.S. the extra EMAs in my chart are there just for shits and giggles, they are not necessary.