Ema Step System.

[maurizio77]

Hi Shandy,

Yes you look to have got it spot-on.

It IS a simple system, which is why i use it.....the more complicated a system is, the more i need to double-check everything, which inevitably slows me down.

Yes i would enter the trade after this cross as soon as the candle stepped to the 15th.
I don't enter before the step as i have been burned this way before, i wait
until the last minute before the step to make my stop calculations and set up the trade.

One thing that i am curious about is how you said this would have been a break even trade (entering on the 15th).

On my Oanda the 14th Candle closed @ 226.83 and the 15th candle reached a height of 228.07, that's 124 pips.
Admittedly, we may not have caught all of these pips, but say, we only caught half of them, that's still 50 pips.

I wish you well

[shandy]

Sorry you're right, I was looking at my MT chart and open to high was more like 80 pips so what I mean was it wasn't a blockbuster day!

Did you enter a long today on GY? Again the candles on Oanda are different to MT and it looks like there was a definate cross on the Oanda candle at the end of the 18th. My chart is posted and you can probably see it looks as if the cross happened during the early hours of the 19th on mine?

[maurizio77]

Hi Shandy,

No i didn't enter a trade today, i was on a course for work so i decided to get a good nights sleep as i had to be out early.

Boy do i regret it now!!!!

200 pip movement today

Still, I am not gonna fall into the trap of thinking "SHIIIIIIT, LOOK AT WHAT I HAVE MISSED!!!!" and then dive in trying to compensate for it.

At the end of the day, i didn't make anything today, but more importantly i didn't LOSE anything either.
My capital is just as happy now as it was when i stopped trading on friday.

Tomorrows another day, with plenty of opportunities to trade.

A BIG well done to anyone who entered using this system today though.......i bet you're laughing!!!!

Wishing you luck!

[shandy]

Another great day for your system man - congratulations!! Unfortunatley there will be no trade today as price is still going UP - but patience is whats needed so lets wait our turn!!

[droesparky]

Maurizio77 you mentioned how you enter on the candle after the cross happens. You also mentioned you use other indicators, how do you use the RSI, slow stoc, and other indicators in your system?

[maurizio77]

Hi Droesparky,


OK, yes i always enter my trades when the cross-candle has "stepped".

That is my one and only indicator for entering a trade....simple, fast and effective.

The other indicators i use for a variety of reasons.

For example.....

RSI.
I use this to help me in seeing the general lie of the land, bullish if over 50, bearish if under.
I also use it as a monitor thing, that is to say, if the RSI is right on 50 and a get a cross candle, i will monitor that trade in case it retraces immediately afterwards(the next candle). If RSI is AT or VERY NEAR 50 it can go either way so it is worth paying a bit more attention to what you are doing.


Slow Stchs.
This i draw on two lines. One at 80 and one at 20. These give me good indication of Overbought and Oversold. If we are over 80 then i will be looking to enter on the first bearish cross-candle on the heighest timeframe possible as you can expect the trade to go quite a distance. The same (but opposite) is applicable if we are under 20.
I have noticed that price rarely stays at either of these levels for too long as the currencies simply can't endure that sort of price action.


CCI.
This is an indicator i have only just started using. The way i use it is to see how far the price is gonna go before i want to start thinking about exiting the trade.
I will try and explain how i do this.
I draw on two lines, one at +100 and one at -100.
Once price has crossed either of these thresholds, i look to see how far over the line it travelled last time.
If say, last time it reached 137 before it turned around i would keep an eye out to see if price this time crosses the 137 from before, if it does, the price is gonna jump.....big time....so obviously stay in the trade. If it doesnt manage to get past the previous CCI high/Low (in this case 137) then i would be getting ready to exit this trade.

I hope i have made this quite clear, i'm not the most articulate person in the world.

Hit me back if you have anymore questions

Good luck to all for prosperous trades in the comming week

[maurizio77]

We had the cross on the daily.

229 pips so far today.

This system WORKS!!!

[ljyljl5555]

Hi maurizio77, i like your system, simple and straightfoward... now i am testing in on demo... i have a few questions:

1)How do we filter the bad signals? for example today... yesterday on gbp/y there is a cross but now it is currently down on the opposite? would really appreciate if you could explain in details how do you pick trades, would really appreciate it Maurizio!

2)How often do you check your trade? once you open a new position do you wait for the day to end to close? or check it every few hours?

3)On trending market, do u leave your position open for a few days? And how do you determine that it will continue the trend on the next day?


Once again Thank you for your time and effort,maurizio77!

regards,
david

[maurizio77]

Hi there,

In answer to your question number1.

I am not sure which timeframe you were speaking about with regards to the cross on the 29th being a bad signal.

I primarily try to trade on the daily.

The daily cross happened on the 29th, so you would have entered at the open of the next daily candle (30th), this opened @ 231.33 and it closed @ 231.88, thats a profit of around 55 pips, although it peaked @ 232.00.

Your stop would have been 230.55. (How i come to my stop is in an earlier post )
50 pips profit, not bad for a friday, i have to say i didn't enter this trade as i was happy with my gain from the action the day before. I don't trade on Fridays, Sundays, or indeed Mondays if i can help it....unless i see the kind of signal that makes my mouth water! LOL


QuestionS 2 & 3
Hmmmm, how long is a piece of string mate? LOL
I am lucky enough to be able to trade while i am at work, but i also have a job to do with the meetings and lunchbreaks that go with it etc....

I am in London, so on the daily, when it steps, it is 5am here!
I next check it when i get into work about 8am.
Then at about 2-3hour intervals after that.... morning tea-break, lunch, afternoon tea break then just before i leave.
....This is when i tend to come out of most of my trades as that way, once i have left work i have nothing to worry about, work is over and so is my trade.
So my time is mine and my girlfriends

There IS often an occasion where my indicators suggest that the trade will continue the next day (2nd day after the cross) in this case i will set a stop at say 50, 100, 150....(whatever is on the radar) and see what happens the next day.
Sometimes it stops out and continues the trend, a bit annoying, but you still have your days profit...of course it can retrace-but you have your stop in place so the money ya made is still yours....and if it doesnt do either of these, you're laughing!

If your indicators are saying that there may be a 3rd day, you just do the same again, adjusting your stop so you keep your days profit.

Don't be greedy for just a few pips more, you'll end up on your arse!
SECURE YOUR CAPITAL!!



I hope this helps you.


Good luck to all for this coming weeks trading

[ljyljl5555]

Originally Posted by maurizio77

The daily cross happened on the 29th, so you would have entered at the open of the next daily candle (30th), this opened @ 231.33 and it closed @ 231.88, thats a profit of around 55 pips, although it peaked @ 232.00.

Your stop would have been 230.55. (How i come to my stop is in an earlier post )

I hav checked my MT chart, if you entered at the opening of the new candle, the market dipped low till 230.54!!! at first before it moved up, 1 pip to hit our stoploss...!! :O

i think the stochastic is a good indicator for us to know when is the best time to enter instead of entering blindly at the start of the new candle... we could wait until it (stoch) changes direction by looking at the 4hr/1hr TF...

We only enter at the start of new candle if the stoch is already in the direction we desire...

Just MHO... Thanks again maurizio77, for taking the time to answer my questions!