Web Trading System (10%/mn)
Thanks man! It's informative, clean, and easy to understand. Three thumbs up!
Thanks for post, I will certainly try it.
Very nice... do share some of your findings afterwards...
It;s a very old and simple system for forex trading..I like it
Old is said to be gold :P
Very nicely written. However, Moving Averages are a lagging trading system, no matter how you try to optimize stuff with orders.. I remember checking the Bunny Girl method in an EA (this method ought to be the best trend-following method out there). Guess what? Not even 50% hit rate. This thing lost completely...
Yeah.. Moving averages do have this lagging feature which we cannot seem to avoid... However, JuriK moving averages are better than the normal MAs and they respond faster to price changes... This gives me an idea, we can just replace the MAs here with Jurik MAs and see how it responds.
thanks for sharing pal 
System doing very well for now... Hope it is the same for you guys...
wow...thanks for the info boss !! hehe
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Specifications of Trading System
Name of System: Web Trading System
System Type: Trend Trading
Complexity: Easy
Number of Indicators: 2
Time Specific: No
Timeframe: H1 and higher
Supported Pairs: All majors and liquid pairs
System Setup and Details
The System consists of placing 2 moving averages on your chart. Both Moving Averages will have settings taken from the fibonaccie sequence, hence, the slow EMA will be 5 and the faster EMA will be 13. Just need to wait for crossing, then wait for the new open after the crossing and get into the trade.
Procedure:
1. Open your chart and switch to H1 or higher timeframe
2. Place Exponential Moving Average with settings 5 and color to RED
3. Place second Exponential Moving Average with settings 13 and color BLUE
Open a Buy Position
The Buy signal lies on 2 phases:
1. The crossing of the moving averages
2. The Opening of the new bar just after the crossing.
As you can see in the above screenshot, firstly we have the RED EMA crossing the BLUE EMA and secondly, we have the New Open just after the crossing which is the exact point where we open the BUY position. And let's look at the result
As you can see above, this trade proved to be a successful one. The most important part in this system is to wait for the crossing bar to close and to open the trade only on the opening on the new bar after the EMA crossed.
Stoploss Placement
It is advised that you place your stoploss 50 pips below the BLUE (13) EMA. You should breakeven as soon as the trade has moved some 30-40 pips in your favor, this will be reducing your risk in this trade to 0. You can also use a trailing stop of around 30-40 pips and let the trade run, hoping to capture the maximum of the moves.
Take Profit Level
TakeProfit level solely depends on your liking. You can use a fixed take profit or you can let the trailing stop do the work for you.
Open a Sell Position
The rules for opening a SELL position with this system is indeed very easy as you do just the opposite of the BUY. The SELL signal is in 2 phases as well which are:
1. Wait for the EMAs to cross but this time, the RED should cross and go BELOW EMA
2. Wait for the crossing bar to close and OPEN SELL as soon as the NEW BAR opens after the crossing.
As you can see in the above screenshot, we have a perfect SELL setup which has been taken perfectly at the right spot. And, this proved to be a good trade as well.
Stoploss
Place your stoploss 50 pips above the BLUE EMA(15) and change to breakeven as soon as your trade is some 30-40 pips in your favor. You can use a trailing stop as well which might be used to capture more pips and ride the trade.
Take Profit Level
The Take Profit depends on your own liking and should vary based on the timeframe which you are using. The higher timefame needs a higher take profit level. It will not be a problem if you do not use a take profit level as well and let the traiing stop do the job instead.
Close a trade
The closing of a trade can happen due to these situation.
1. The price reached your stop levels and therefore, your trade will be closed automatically.
2. When the closing price if the crossing bar is almost EQUAL to the EMA 15(Blue)
3. When there is an opposite signal( e.g close BUY when there is a SELL signal)
When NOT to trade
The following rules should be the most important ones as these are the rules which, when observed, will allow you to bypass the ranging markets or whipsaws. We are using a trending system and we are relying on trends so that we can make some money. If we take trades in ranging or unstable(news) periods, we will be taking a high risk and the trade might turn out into a loser. SO pay close attention to these rules and stick to it.
1. Do not open the position if there is a gap of more than 100 pips between the opening price and the level of stop loss order. This rule will protect you from big market movements which take place during a very short time interval.
2. Do not open the position when there is only 1 pip between EMA5 and EMA13. Wait until the time interval is closed with more sufficient difference between EMA5 and EMA13.
3. You should set up for yourself a certain maximum sum which you are ready to lose on every trade (risk percentage). It should not be more than 10% of the total sum on your account. Good money management is the key to the successful trader.
Final Words
As with any other trading system, this one will also require lots of practice before you can start with the real trades. Make sure you practice this system on a demo account for a few weeks. This period of testing will be very determining to you and will let you know whether the system suits your trading style or not. Practice a lot and do not burn the rules at any time. Good Luck