Simplicity ,the best solution

randomlight 2006.05.22 05:30

I think simplicity is sometimes the best solution.

I would sure appreciate if some programmer could check this out for me.(it would take me forever to learn to program Metatrader myself and I am way too busy)

I know it sounds too simple but I was amazed at the results I got with my manual tests.

on a 15mim. or 1hr chart.

You set your ema`s at 10,25,and 50.

very simply, when the 10 ema goes through the 25ema and continues through the 50ema you Buy/Sell in the direction the 10 ema is going (once it breaks through the 50 ema.)

You set a stop loss at 25 pips and a limit at 50 pips.(this way when you win you win twice as much as you lose when you lose) If over time it goes right just 35% of the time, you still make money ...and of course you should do at least 50/50 in the long run. (I think)

I manually checked back for the maximum time my charting package would allow on 6 pairs and got quite good results.

(My 1hr only allows 30 days and my 15min allows 10 days.)

I was hoping some kind soul could tell me how this would have done over the last year or more. thanks

sarenokai 2006.05.22 15:48 #1

thats a pretty interesting way of trading.

i hope it works out for you. good idea with the s/l and the t/p

linuxtroll 2006.05.22 17:37 #2

3x13=39

Here you go:

3x13=39

deepdrunk 2006.05.22 19:36 #3

check forums about catfx system also called Nina and also forum about bunnygirl system,they are based on almost same princips as yours and they are already developed to work fine

goldensight 2006.05.22 19:49 #4

I think you have a really good starting idea. I don't know how this would have done over the past year however the best thing to do is to trade it on a demo and see and feel how it is for you to trade and get into it's rythmn. In addition to exiting via a take profit of 50 you might also think about testing to exit the trade when the 10 crosses back thru an 18 ema by adding that to your setup that way you will sometimes stay in the trade longer, not all of the time but some of the time. On the very strong trends you could also exit as Price itself crosses over your 10 ema. And if you don't want to trade manually by watching charts you could also consider experimenting with a trailing stop. Essentially this ema setup is trading with the trend and trends come and go in the forex market so yes you will make money and sometimes you will be confounded if you only use ema's by themselves however you have to test that opinion to see if it is true for you. You might find that you want some additional confirmation from an indicator or two plus some support and resistance lines. Basically your ema setup is trading buys when price is above the 50 ema and selling when it is below, and because of that you might go check out the thread for "catfx50" because a part of her strategy is utilizing the 50 ema and it might benefit you to see how they incorporate it. And you could get some good lessons by reading thru the more than several thousand posts in that thread, I don't trade it myself but it looks quite good especially for someone to learn from. Hope that helps.

randomlight:
I think simplicity is sometimes the best solution.