First of all i wanna to say that i did not create this system all what i did that i mixed some indicators that i found in some systems and found that it works better in that form more than it works with its original systems.
You will find all needed indicators and a template attached below.
Time frame used : H4
Entry Rules:
Long entry when:
1- 4 time cci gives all periods green squares.
2- Red MA is abouve blue MA in the chart.
3- We must have buy signals of minimum 2 of the other 3 indicators:
a- green line in ADX is above red one and above level 20.
b- blue MA in MACD is above the red one.
c- DPO line is above zero level.
Short entry when:
1- 4 time cci gives all periods red squares.
2- blue MA is abouve red MA in the chart.
3- We must have sell signals of minimum 2 of the other 3 indicators:
a- red line in ADX is above green one and above level 20.
b- red MA in MACD is above the blue one.
c- DPO line is under zero level.
I tested this system on these 3 pairs and the results was great:
1-USDJPY
2-EURJPY
3-GBPJPY
I did not try it with other pairs so you can try it and share your results if it was good.
TP & SL:
TP 1 40-50 pips (according to your spread)
TP 2 900-100 pips
SL: i usually use the previous top or bottom to my entry.
Hope the system is now clear to every body and if you have any question i will be happy to answer you.
i will post some examples to trades in the next post.
AS we can see in the pic there is 2 examples for long entry in September.
In ex. no. 1 the four squares in 4 time cci indicators gave us a long entry signal and at the same time we had the red MA was over the blue one and we had buy signals on DPO and MACD indicators then price went high for more than 150 pips hitting tp1 and tp2.
In ex. no. 2 when 4 time cci gave us a long entry signal i had to wait until 2 other indicators confirmed the signal then i went long and only tp1 was hit.
Hope that the system is now clear to every body and i will post any new signals when it is available .
Obviously this does not require you to sit in front of the computer the whole day though, especially when you have full time work during the day also, which is good…
So basically you only use it on these three pairs though?
And time frame is 4hr… Have you considered going up to daily time frame??
But last week we had only 1 chance and it was on EURJPY pair and as is shown on the attached pic the price went and hit my TP1 for +50 pips profit then went back and hit my BE stop
Sounds like a pretty nice week for just 2 trades! Congrats!
I’ve looked at a quick backtest for this and it definitely looks very interesting. Setting the TP levels is definitely key and I’m wondering if a trailing stop after your first TP is hit would help you maximize the second half of the position. Something like 75-80 pips or so seems about right for both EJ and GJ from what I reviewed in my backtest. For the two trades from last last week, this would have resulted in fewer pips, but it would help you catch the 500+ pips moves. Have you thought about this at all or do you have any experience with it?
[QUOTE=“irvinfitness;556158”] Thanks for the verification! Sounds like a pretty nice week for just 2 trades! Congrats! I’ve looked at a quick backtest for this and it definitely looks very interesting. Setting the TP levels is definitely key and I’m wondering if a trailing stop after your first TP is hit would help you maximize the second half of the position. Something like 75-80 pips or so seems about right for both EJ and GJ from what I reviewed in my backtest. For the two trades from last last week, this would have resulted in fewer pips, but it would help you catch the 500+ pips moves. Have you thought about this at all or do you have any experience with it?[/QUOTE]
Thanks for sharing your thoughts irvin
Trailing stop is a nice idea and i use it already but after my TP 2 is hit but the problem is the pairs we are dealing with in this system are too volatile so in most cases trailing stop is being hit early.
Ok that makes sense. I do have a question regarding the weekend gaps. Do you typically trade them if the rules are met? For example: EJ just had a decent gap over the weekend and met the rules for a long entry. Did you take this trade?
This week we had 2 trades, both were for EJ pair the first was the one irvinfitness was asking about (28-10-2013) and the second was (29-10-2013) and both hit my TP1 for +50pips for each one so :
