Here is a good trade, it went 60 pips my way after my setup, take profit was at 40 pips
as you can see, price as break true ema 21, stochastic passes 40 level, in case take profit or stop loss was not hit, exit would be at the maroon vertical line, where momentum crossed 10 ema
Attached Image (click to enlarge)
Logic will get you from A to B. Imagination will take you everywhere.
First you start downloading the WinZip file, which has the indicators and template, all January back testing is on the template,
So the rules are
Buy - When you have momentum above 0 and above moving average 10, stochastic passed level 40 up(if setup is when stoch is already at level above 90, DONT TAKE THE TRADE), price break true resistance level 21 ema, you will only enter at the close of the candle,
Sell - When you have momentum below 0 and below moving average 10, stochastic passed level 60 down(if setup is when stoch is already at level below 10, DONT TAKE THE TRADE), , price break true support level 21 ema, enter only at the close of the candle
Exit at 40 pips take profit, 35 pips stop loss, if either take profit or stop loss is not hit exit when momentum crosses the 10 ema(CROSSES, not touches, exit only when it crosses)
I chose 40 pips take profit, and stop loss 35 pips, the best money management for this system, and I’ve spend months studying stochastic movements.
Only trade from 6.30 GMT to 19.30 GMT any setup later or sooner than that has 85% chance of being a loser trade.
My excel file is at GMT time
Any doubts just ask.
Regards Marco
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Do the events all have to happen on the same bar?
For instance- you have a momentum cross but price hasn't broken the 21 ema. Will you wait several bars for the 21ema to be broken?
Another instance- You have a momentum cross but the momentum is the wrong side of the zero line. Provided everything is still in the right condition, will you wait until the momentum crosses zero?
For instance- you have a momentum cross but price hasn't broken the 21 ema. Will you wait several bars for the 21ema to be broken?
Yes, it doesn’t need to be in the same bar, if momentum crosses, and it didn’t break 21 ema yet you have to wait till it breaks it may take some bars, enter only when all indicators are in agreement, and if stochastic passed the barrier of 10 or 90 consider it a no trade
Another instance- You have a momentum cross but the momentum is the wrong side of the zero line. Provided everything is still in the right condition, will you wait until the momentum crosses zero?
Yes, I will wait till is crosses zero and ema 10
Also- How do you use the Bollinger band?
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I use only Bollinger bands to see if the market is making good movements, if it widens probabilities of a good trade increases, if it shrinks, the probabilities of a bad trade increase, I don’t use it to trigger exit or setup, its just to get a notion of what is happening
Logic will get you from A to B. Imagination will take you everywhere.
The statement from January is back tested data, didn’t live traded it, just started live trading it this month, but I had back tested 6 month all with profit, but since I had to change force index ( it is based in volume, and forex doesn’t have volume, data changed if I switched broker) for the momentum indicator, I will have to back test it all again, once I have it all done I will post the back.
I don’t incentive anyone to live trade the system before testing it,
Logic will get you from A to B. Imagination will take you everywhere.
Hi, I’ve back tested 6 month with force index, all with profit, but since I had to change it for the momentum indicator I have to back test it all again, but once I have all tests done, I will post the results.
Logic will get you from A to B. Imagination will take you everywhere.
Hi, can someone tell me how I can change the thread name, since the original system was based in force index, but the new version no longer has that indicator. Thanks.
Logic will get you from A to B. Imagination will take you everywhere.
is there a possibility to turn this system into an EA? So far i like it a lot. I use it on gbpusd, gbpjpy and eurjpy.
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Depending on me no, I don’t know how to program it to alert me when a setup bar appears, creating an EA is even more complicated, and I would like that no one creates an EA or software alert without my approval , I’ve spend more than 12 hours a day, including weekends, trying to create something that works for me, it gave me lot of headaches and nights without sleep to create this system, because I had to back test the data for at least 6 months with profit, (I have tried more than 10 parameters about stochastic, force index, emas, momentum), and every time I tweaked and indicator or a parameter (even switching stochastic 15.3.3, for a 14.3.3), I had to do the back testing again, I don’t want to see no dumb ass selling it (although I think It wont happen in FF). Never tried it in other currencies, but should work in all majors, but stop loss and take profit must be adjusted to each currency, I just trade the cable, I hope you guys enjoy it, and help me too to improve it,
Thanks Marco
Logic will get you from A to B. Imagination will take you everywhere.
And note that the time entry that I post here, and on the excel file, are referred to the end of the bar, not at start of the new one (although it is the same thing, but its only that you know the exact time of exit and setup that I post here) so if I post for example, short at 7.00 GMT close bar, in reality is short at start of 7.30 GMT (the same thing), any doubts just ask.
Logic will get you from A to B. Imagination will take you everywhere.
Long position open at 9.00 GMT at 2.0348, closed at 10.00 GMT 2.013 -35 Pips
Long Position open at 13.30 GMT at 2.0306, closed at 14.00 GMT at 2.0266 +40 pips
Long position open at 15.30 GMT at 2.0335, closed at 20.30 GMT 2.0375 +40 pips
Total pips made 9 October +45 pips - spread commission 2.5 pips per trade, +37.5 clean pips profit
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Could you please show a chart with the entries and exits...my broker is GMT time, and this is how it looks like at the time you mentioned..but I cannot understand these entries based on the rules that you explained...
