Just wanted to share my system I have been playing around with and would like to have it submitted for decembers contest. My system is very simple.
I plot a custom indicator with a 7 period EMA. Then I plot two more lines
(7) EMA + (7 period) Average true range
(7) EMA - (7) Average true range.
Work on all time frames, 5 min, 15min, seems better to work on 5.
When a bar closes outside the two lines and then another candle closes inside, I enter a position on the next open. I set a trailing stop of ATR value, and target to ATR value.
Thanks RoboPip. So far it seems that it will work best with eur/usd, but I really havent had a chance to test it out too much. Next week now that Im done with school I will be trading this early in the morning when the ATR is high enough to make it worth while. I will post results.
What software do you use to test this, is there any possibility that you could adjust a few parameters for me and see what got the best results.
Havent traded this too much, simply because my funds are applied to other strategies. However Im backtesting it and it looks promising.
I have made a modification that will make a huge differance. I used to just use discretion but now I added a MACD to the mix with (Fast Lenght 7, Slow Lenght 14, and MACD lenght 7). Simply make sure the two bars before your entry on the open are sloping in the direction you want the pair to go.
Its easy enough to mechanize and will eliminate the majority of losing situations. Im still working on changing the SL & Target points to find a balance that produces best results. This also works on 1 hr time frames nicely as the ATR is greater.
Also note that the ATR should be greater than 6 pips or its not worthwhile. A greater ATR if the spread is bigger than 2.
Kindly if you can add indicators and template with your post then that will be very easy. Because I cannot set the indicators value as its described in the post.