The Sproule System

Trading Systems Free Forex Trading Systems
1

Hi Everyone,

Below is a very simple system that I use both manually and also via an EA that I have written on a live account. It’s easy to setup and doesn’t require you to be sitting at the computer screen all day, only check it every few hours if doing it manually.

Indicators
100EMA applied to close

Time Frame
1 hour chart

Currency Pair
AUDUSD, EURJPY, EURUSD, GBPJPY, GBPUSD, USDCAD, USDCHF & USDJPY

Entry Conditions

BUY
Enter a buy position when the current price is above the 100EMA and the previous low is above the 100EMA.

SELL
Enter a sell position when the current price is below the 100EMA and the previous high is below the 100EMA.

Take Profit and Stop Loss
Set take profit at 100 pips

Set the stop loss at the current 100EMA value and keep moving the SL to the current 100EMA value each hour.

The Sproule System2.jpg700×361 45.7 KB

The open position and stop loss do tend to get wider as the trend gets stronger but the price and 100EMA SL will close in on each other minimizing the loss if the trade goes sour.

When it is a side ways trend you can either sit out and wait, or if like me and you use an EA you can take a small number of very small losses (this is because the 100ema keeps moving in on the price) and then you get the long trends.

I have had trades opens for a few days in profit and as long as you keep moving the SL to match your 100EMA you will profit nicely.

In regards to the 100 take profit, it gets hit alot but you also make alot of pips if the the price never reaches the TP, as it comes back to hit the SL that has been moving with the price.

And that’s it… feel free to leave comments and suggestions.

1 Like
2

Hey!

I’m working on a similar system myself, and I have an idea for you. I added StDev to my system, when this deviation is below a certain number, you know the pair isn’t going anywhere and you risk getting a lot of bad entries. (you do miss some good entries as well, since stdev lags a bit behind, you’ll lose one good, but avoid potentially 10 bad?)

I have quite a lot of optimising to do but I’m confident my system could generate quite some pips! Hope yours improves as well!

3

Could you kindly upload a larger image?

Its better you upload it in any image file sharing site and share the link with us.

4

could you upload a zoomed pic?

5

Better image can be found here - The Sproule Trading System � The Silent Sniper EA

6

I like the idea of nice simple systems. Have you tried backtesting this over any period (either manually or with your EA)?

The problem with simple price/MA crossover systems is that they often suffer from too many false signals to be profitable in the long term. I tried backtesting this over various periods and each time, whilst there were some nice trends to be found, there were too many signals that lost.

While back testing, the issue was that the trade was entered, and then lost within the next few bars, so the MA had not moved enough to allow the stop to tighten. I was trading 2% on each trade, and as a result, the losses were too many so I couldn’t make any profit. When you say that in a sideways movement your EA makes a few small losses, how is that? What is it doing to move the SL so as to reduce the risk?

7

I like the name “Sproule” :slight_smile:

I found that there are many small orders triggered around the MA line, so I added “Once per bar” functionality. That means only one order per bar (one hour) can exist. I added StdDev (pipbiquitous idea) and the result is here:
FxDreema - The Sproule System
(click .mq4 or .ex4)

8

what is it used for?

9

i want to ask you take trades according to the first candle closes after touching the EMA? you look for a marubozu candle for ex? and one more question did you ever test it with NZD pairs?
looks promising. thanks for sharing

10

I think that this system has much potential, I’ll keep into consideration during the 2012 and making the necessary changes.
I think that the same system can also be applied for a time frame of 15 min or 4 hours, what do you think about?

11

I open the trade on the new candle, so when the new hourly candle opens, I check the previous candle to make sure the high\low was on the opposite side of the ema, this means that we know the trend, but sometimes we can be caught with this if the there is a news report and the price whipsaws.

I’m currently looking at a slightly modified version to ensure we know the trend and to cut out the trades that whipsaw.

No i haven’t looked at the NZD pairs, big I’m sure it will work on them as well.

12

The H4 chart definitly suit this strategy and you have the protential to get really good trends and big profits but if your want to see something happening fast it not for you as the trades opening only happen every few days, but well worth thewait if you what to gain big profits.

13

Yes, I think I will test this system on 15 min, H1 and H4 charts :slight_smile: Thank you guy :47:

14

There might be an EA on the market very soon! :59:

http://forums.babypips.com/expert-advisors-automated-trading/42644-silent-sniper-pre-release-testing.html

15

I just had a look at 4 pairs with the NZD, there are some pretty amazing trends on the H1 & H4, one trade that would have started in Dec would have netted +780pips!!!

That’s proper trading! :59::60:

16

Results of the EA on my real account using this trading strategy.

17

i would be very thankful if you can modify it because i got stopped by whipsaws twice today :slight_smile: there should be some indicator to avoid the most of the whipsaws…

18

can we get the EA and test it?

19

Hi Zirzovat,

I’m currently working on a modified strategy that will take out alot of the whipsaws… keep checking back here as it will be posted soon… :slight_smile:

20

I have a number of people testing it at the minute so I don’t need any more testers at the moment.

Head over to the EA theads and see how the EA is performing - http://forums.babypips.com/expert-advisors-automated-trading/42644-silent-sniper-pre-release-testing.html