Ema Step System.

[dr pipper]

this may be helpful, look at the candle (or bar) previous to the cross-candle if it was bearish and the cross candle is bullish (or viceversa) thats a good sign the trade can run for a while, for example EMAs cross goes down, the cross candle is red (bearish) and the previous candle is green (bullish) that can reinforce a sell signal, and viceversa. i backtested this in GBP/CHF GBP/EUR GBP/USD and EUR/USD in daily charts. What do you think? i'd like to hear answers from all users of this system but specially maurizio. And by the way thanks for your system!

PD> the colors are from the charting package i use (FXsol) just change them according to yours.

[Benjimang]

Today I have spotted a few crosses. The problem is that the three pairs I have looked at are all related, so I will endeavour only to enter on the strongest signals.

EUR / CHF: Possible Sell

This would be my least favourite choice of todays pairs. RSI is flatlining ever so slightly above 50, but it's too hard to tell which way it will go from that. Stochs are in OB territory, but they haven't crossed into sell mode yet. Stochs on the 4h are below 50 and actually look to be heading into buy mode. That's my biggest hangup. CCI is heading south toward 0. With the stochs they way they are, and having seen some bullish movement through the Asian morning session, I'll pass on this trade.

EUR / GBP: Possible Sell

This setup is nearly identical to the above pair with a few important differences. RSI has ever so slightly dipped below 50 on this pair. Stochs have already curled over and are heading south from OB territory. Stochs on the 4h are in OS, but they seem to still be headding lower. Finally, CCI is under the 100 mark and has a decent gradient south. Couple this with some positive retail data from the Brits yesterday, and I think this one is a winner. I'll sell.

Please be careful with this one though. Remember that the Brits are releasing Trade Balance data today which could cause problems.

GBP / CHF: Possible Sell

Again we are looking at backing the British Pound. RSI has nudged over 50 and CCI has climbed over -100 and is looking to pass the 0 mark soon. Stochs are heading north from a position under the 0 mark and still have some headroom to rise on the 4h as well. I feel comfortable buying this pair as the Swissy has seen a slight weakening over the past 12 hours across multiple pairs. I'll buy.

As a side note, my decision with this pair supports my two previous decisions. I also feel that my recommendation from yesterday regarding USD / CHF may come to fruition today, however this is just speculation and is not yet supported by this trading system.

[francob604]

Thanks maurizio77 for sharing your system. Are you just using the daily charts for entry or are you using any smaller timeframes to trade? Any changes in your system tweaks that you've made?

I'll be demo trading this system as well and would just like to know if there might have been any changes to it. I plan on trading on the daily chart and follow Benjimang analysis on pairs that he posts in here. Thanks as well Benjimang. It seems that you do check the 4hr timeframe as well. Do you use the same indicators as in your daily chart? Do you always do this to only check for confirmation and decide based on the daily timeframe?

Thanks guys any feedback would help.
Franco

[Benjimang]

Ok, it looks like the Sterling got hammered across the board at around 5-6am GMT. The positive trade data has done little to counteract this negative movement. On the flip side, the only suggested trade that I opted out of would be profitable by now.

francob604, please remember that I am not an experienced trader, so take what I post here as ideas only. I am trying to stimulate discussion on the real time application of this system. Oh, and I do look to the 4h timeframe to help me time my entry, but I base my decisions on the daily charts.

[Benjimang]

Ok so we saw some pretty large price movements in yesterdays trading. This has lead to many setups occuring across the board that will trigger this system. I will only comment on the couple that I will trade.

GBP / JPY: Possible Sell

Well, this is the obvious one people. It is the pair that this system was created on, crossed down sharply yesterday and has been south-bound for most of the morning Asian session. Stochs are falling from an OB position, and CCI is falling below the 0 mark. I have noticed that the CCI downward gradient is lessening, so this may not be a huge run today.

Signals can also bee seen on the USD / JPY and EUR / JPY pairs (or even the Swissy cross). I'm going with the pound because it has proved more reliable in relation to this system.

EUR / CHF: Possible Sell

I won't go through all the signals, because they all basically point to a sell off. That said, the pair has been dropping for a couple of days now, so I will be watching this trade closely.

-Benjimang

[Benjimang]

Well I'm pretty happy with the trades today. I have closed both positions with a small 10 pip loss on my EUR / CHF trade, more than offset by a 50 pip profit on the GBP / JPY.

With the global economy looking in such good shape, a lot of emphasis has shifted to carry trade strategies. It's important to remember the inverse relationship that high interest rate currencies like the Aussie (6.25%) have with low interest rate currencies like the Yen (0.5%). I have been using price movements in one pair to signal trade exits (and entry confirmations) on the other.

-Benjimang

[maurizio77]

Wow!

What an amazing few days. Ya gotta love the YEN! When it wants to move it M O V E S!

Made roughly 320 pips today...and thats even after getting stopped out a few times...and all i did was follow this system......with todays action i used ALL the timesframes from 5Mins upwards.

Have enclosed my trades of the last couple of days, the quantity may suprise you, what you must realise is that i was doing the GBP and USD simultaneously waiting for the support to kick in, so i traded one, banked the other....traded one banked the other...all the way down...then partially back up again.....until my work demanded some attention LOL. (Has to be done *sigh*)

Anyhooo, am sure i wasn't the only one making m,oney on the YEN today....how did everyone else do?

P.S,
The three hours are topped out but the daily is bottomed out, i reckon she's gonna fall a bit more, perhaps hitting the same support before the long climb upwards again......keep an eye out.

[Hideyoshi]

I back tested this system and it seemed sound. I used 1 hr charts and the EMA setup. For a 1 1/2 day period I had a 163 pip gain.

HOWEVER,

I demo traded this system on a 15 minute chart and it was a total failure. Of 9 positions that met the systems criteria two were profitable at 40 and 50 pips. I had one at 0, and the remaining 6 positions combined at a 505 pip LOSS. I'm glad I demoed it.

Factors to consider are my trading times - I'm in Japan and I trade during the Tokyo Session. It is Monday here. I traded the following pairs:
GBP/JPY
GBP/USD
USD/JPY
AUD/NZD
AUD/USD

Personally, I despise the GBP/JPY. A volatile, unpredictable pair that takes pleasure in defying oscillators and indicators.

Everyone else may be having better success due to their trading times or currency pairs. I don't care for this system, though. I like using support and resistance and this system doesn't place any importance on that. It seems to much like shooting from the hip.

Just my two cents.

[cryten]

Hideyoshi this system is geared towards the higher timeframes, you said yourself you made over 100 pips in a few days on the one hour chart then you switched to 15 min and lost 500.

I am testing on 4 hour and above

[Hideyoshi]

Originally Posted by cryten

Hideyoshi this system is geared towards the higher timeframes, you said yourself you made over 100 pips in a few days on the one hour chart then you switched to 15 min and lost 500.

I am testing on 4 hour and above

I didn't make 100 pips, mate. I back tested it and saw that, had I traded it's entries, I would have made 163 pips.

When the system was introduced it was stated that it could work on almost any time frame,including 15 minutes, but I believe thats wrong (and your right). This probably is a higher time frame system. I've give it a go for a couple days and see what the cat drags in.

Lets us know how the 4 hour goes.