Leonida Trading System

[kepler]

Hello guys out there, I've just maked my first trading system! I took inspiration from several trading systems that I've found here and on other resources, but I've finally put all the ingredients toghether and created something unique. I called it "Leonida Trading System" (for the moment v1.0) and maked also a VT Trader script (attached to this thread) to forward-test it (put the file into the #\VTTrader\TradingSystem folder). I'm a forex newbie, since I have only two years of studies behind me, and in this time I've gained something like 10 dollars, but I consider it a great success, since I never closed my little account. However, I need your help! This is the reason I created this thread, hoping you will find my errors and help me to grow as a forex trader.

And now, let's talk about Leonida.

How it works

Leonida uses three different indicators: Parabolic SAR, MACD and two exponential Moving Averages.

When you should open a LONG position.

1) First of all, SAR should be under the bars, I mean that the price should be greater than the value of the dot (graphically you will see the dots under the candles);
2) second, the faster line of the MACD should cross the slower one from below or be greater than it;
3) third, but not less important, the faster MA should be greater than the slow one (like seen with the MACD in the previous point).

Of course the SHORT position will be the opposite.

I'm still having some doubts setting the EXIT points, however for the moment you will exit a trade when one of the three condition (relatively to your position) is false; for example if you are buying EUR and the fast MA crosses the slow MA from above, then you will close your position.

STOP LOSSES are not defined into the script, I'm not sure if I should leave this opportunity to the script itself or introduce a rule (for example, like in the Cowabunga system, that the stop loss is the value of the nearest price peak, high or low depending of the situation).

For those of you who can read the VT Trader scripting language (it's very simple and intuitive if you are confortable with programming languages) the system is described in detail into the attached file.

Setting the indicators

1) For the parabolic SAR, the settings are those "by default" on most trading interfaces:

Step = 0,0200
Maximum = 0,2000

2) The settings of the MACD (exponential) are something different from the usual ones, because I've found (by experience) that in this whay MACD predict "faster" the trends:

Short Period = 8,0000
Long Period = 17,0000
Signal = 9,0000

3) The MA (exponential) settings are those of the Cowabunga system:

Slow MA = 10
Fast MA = 5

The period in which I trade is 15 MINUTES. I don't know exactly how, but it seems it will be useful in the future to implement a rule that consider also the 4H period, to see the "main picture".

Warning

This script is NOT backtested, I made only some days of trading with a demo account and it gave me a lot of pips (100 only this afternoon trading EUR/USD, GPB/USD and USD/JPY toghether). It's obvious that the real life is different.

Images

I only provided two images to this thread, sorry but I had not time to copy and paste screenshots into Photoshop. However, if you use the VTTrader script, you can get a better view of the system than a few images, so... nice trading!

[clayboy]

Ummmmm, so basically it's the Cowabunga system your using. Other then the change made to the MACD it's the same, and the Cowabunga system does use the 4H chart to determine the trend. Sorry, but this credit goes to Pip Surfer him self - the creator of the Cowabunga system.

I'm a big fan of the Cowabunga system and have been following it on a daily basis. I drifted away from the system for awhile and it cost me lots of pips. Good thing it was just a practice account. I'm going to start trading the Cowabunga system again. Well maybe, I just can't help trying new things.

[kepler]

Originally Posted by clayboy

Ummmmm, so basically it's the Cowabunga system your using. Other then the change made to the MACD it's the same, and the Cowabunga system does use the 4H chart to determine the trend. Sorry, but this credit goes to Pip Surfer him self - the creator of the Cowabunga system.

I'm a big fan of the Cowabunga system and have been following it on a daily basis. I drifted away from the system for awhile and it cost me lots of pips. Good thing it was just a practice account. I'm going to start trading the Cowabunga system again. Well maybe, I just can't help trying new things.

It's clear that since I am not a real "expert" trader I've been searching for some "inspiration" out there, and Cowabunga gave me the suggestion of the two MA periods. But the use of the MA into the Leonida is different. In the Cowabunga, you enter an open position when MA5 crosses MA10, in Leonida you can go long if the MA5 has crossed the MA10 yet.
I don't thake account of RSI, and I use MACD in a different way; finally I use the parabolic SAR that is not into the Cowabunga system.
However, I'm still testing it, and maybe I will make a MetaTrader script soon to back-test it; for the moment I use a demo account, and you should make the same when testing a new sistem, or a changed-one...

[seven]

Hmmm...parabolic on 15m seems to be a flow since it was build for at least D1 time frame..why dont u try this...