[B][U]You can find this system at the 11th Grade in the School of Pipsology[/U][/B]
[U]General Trading Setup[/U]
[ul]
[li]Trade on daily chart (swing trading)
[/li][li]5 EMA applied to the close
[/li][li]10 EMA applied to the close
[/li][li]Stochastic (10,3,3)
[/li][li]RSI (14)
[/li][/ul]
[U]Trading Rules[/U]
Stop Loss: 30 pips
Enter long (buy) if:
[ul]
[li]The 5 EMA crosses above the 10 EMA and both stochastic lines are heading up (do not enter if the stochastic lines are already in the overbought territory)
[/li][li]RSI is greater than 50
[/li][/ul]
Enter short (sell) if:
[ul]
[li]The 5 EMA crosses below the 10 EMA and both stochastic lines are heading down AND (do not enter if the stochastic lines are already in oversold territory)
[/li][li]RSI is less than 50
[/li][/ul]
[U]Exit Rules[/U]
[ul]
[li]Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50
[/li][/ul]
[B]I have a similar but different approach to this setup[/B]
[U]My Trading Setup[/U]
[ul]
[li]Trade on [B]1 minute chart [/B]
[/li][li]5 EMA applied to the close
[/li][li]10 EMA applied to the close
[/li][li]Stochastic (10,3,3)
[/li][li]RSI (14)
[/li][/ul]
[U]Trading Rules[/U]
[B]Trailing Stop: Spread[/B]
Enter long (buy) if:
[ul]
[li]The 5 EMA crosses above the 10 EMA and both stochastic lines are heading up (do not enter if the stochastic lines are already in the overbought territory)
[/li][li]RSI is greater than 50
[/li][/ul]
Enter short (sell) if:
[ul]
[li]The 5 EMA crosses below the 10 EMA and both stochastic lines are heading down AND (do not enter if the stochastic lines are already in oversold territory)
[/li][li]RSI is less than 50
[/li][/ul]
[U]Exit Rules[/U]
[ul]
[li]Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50
[/li][/ul]
Two changes only. The first change is trading on the 1 minute chart, the second is I have a trailing stop at the spread price. You can add trend-lines and other tools to show you when to enter, analysing the 5 minute and 30 minute chart may help also to see where the trend is likely to go. Support and resistance lines too. I’m only new and above is how I’ve been trading
I have tested this system a few times and doubled my demo account within 15 days. I tested it again today on my lunch hour and gained 50+ pips. This is a system I am only [B][U]testing[/U][/B] as I’m new to forex. Please feel free to test for yourself and leave feedback, being positive or negative. I believe any feedback is good feedback (unless you’re trying to start a war)
[B][U]Please note:[/U][/B] I have not added any risk/reward, money management or leverage information to this thread. Each to their own and whatever works for you
[B]C.R.E.A.M. - Cash Rules Everything Around Me[/B]