4ema + 16ema +PSAR

[dr pipper]

hi, this is the parameter i use to trade the EUR/USD, i have limited experience but so far it seems to work ok, i hope you find it useful and any suggestions to improve it will be welcome, thankyou for your time!
this is the system

on eur/usd
time frame - 15 min ( also in daily chart for swing traders)
4ema - white
16ema - yellow
PSAR

when 4ema crosses up 16 ema is a BUy signal
when 4ema crossesdown 16 ema is a SELL signal
CONFIRM with PSAR ( upper dots = SELL, lower dots = BUY) early dots (1,2 otr even the 3 first dots)
Enter Only when both conditions are met ( emas cross + PSAR)

ATTENTION: use it ONLY when market is trending (european and/or american session) otherwise it gives false signals.
In daytrading (15min chart) you can aim for a 10 to 20 pips profit per signal, but in swingtrading ( daily chart) you can go for up to a 100 pips in two days.
False signal: when emas cross and then quickly recross get out, (and swallow the loose and your pride, the hardest part to do!) its a false signal, wait till it follows the main trend of the past day or hours to re enter.

PS. i use fxsol charting package and i can barely set my parameters, so if anybody could tell me how to upload a chart i will really appreciate it.

[dr pipper]

here is an example of the signals, both BUY and SELL. on an eur/usd 15 min chart
white line = ema4
yellow line = ema16
blue line = ema60 ( this one i use it only to identify the main trend, it is not essential but it helps a lot)

Notice the time when the signals appear (between 1 am and 13 pm) thats because i live in mexico ( viva mexico ca...!) and it is GMT -6 hrs, that is, this is the time for the europpean and the american sessions

i also would like to say that this system is kind of a combination of james' system to trade the eur/usd and another system i found on an e-book while navigating on the internet. at first i tried both systems on their own but i couldn't make them work, so i sort of mixed them and found that it worked, at least for me, i hope you can profit from it too!

[mdietrich]

Hola dr pipper

Thanks for sharing will give this a look, I had tried James 30 minute PSAR method too.

Do you have any reason on the 4 and 16 EMA choice? (4*4=16) perhaps? Is that a matter of experimentation|? Though not magic, some us fibonacci numbers, I chose lucky 13 and 55 for the method I've been experimenting with ... looking for something not too likely to whipsaw but not lagging a mile behind either.

Donde esta en Mexico vive usted? Mi novio es un mexicano, pero vivimos en los Estados Unidos. (Thing that is correct, still learning on the Spanish. )

[dr pipper]

hi mdietrich, the 4 and 16 emas (and the ema60 for that matter too) got them from a system i found on an e-book, but the signal with that method lagged a lot, so i added the PSAR along with the cross of the emas (like james' system) and got rid of the ema 60 (just keep it as a visual aid as where the main trend is directed). i don't really know why they chose these values, i just tried them and found it gave me good results, so far i had many winning trades, and few losing trades, mainly because i fell asleep and missed or entered late a trade (as you have seen, here i have to trade late night). By the way i am from mexico city, and very good spanish!