Ema Step System.

[tonymand]

[quote=ThrowingCopper;50034
[COLOR=red]However, now the system starts growing more complex and is changing. The latest is some combo with Bollinger Bands. As people report more losses, the system will start changing yet again[/color] quote]


To be honest I dont think you really get it. I am not a great fan of systems but this is one of the more logical approaches to the market. If you are a systems trader it does need constant refinement and attention for an ever changing market (part of the reason I dont like them). It is often the case that few people other than the author can really use them successfully because the system has been developed to suit one person. My observation is that successful system traders use a great deal of discretion in their use of the system which is often not realised by themselves. I will not forget early in my trading career being with a colleague as she traded the ASX live and as she looked at the incoming bid/offer lines said this 'doesnt look right' and exited just before a big move against her. That wasnt in the system that she had been teaching us but separates the big winners from the rest in my opinion

[sinn1]

If you look at the images below, on the Daily chart, there is an EMA cross exactly inbetween two candles.. Do you count the EMA cross occuring on the left candle or the right candle?

Also, the second picture shows a valid entry point on the 3 hour chart but this is going in the opposite direction as the Daily Chart. Did anyone enter this trade? Or is it not recommended (based on past experience) to enter a trade on the 3hour chart which goes against the direction of the Daily chart?


Did anyone enter any of these trades?

[dario]

Hi to everybody,

I'm reading about this EMA system since the first post and I find it interesting.

My problem is with CCI, I don't know really how to read it. Most of the time is between -100 and 100.

The EMA cross, stoch is over 20/80 and CCI is between -100 and 100...what does it mean?

Thanks

[dario]

I'm sorry I forgot to ask an other thing.

The Stoch have to be over 20 or 80 for entry signal?

Thanks...you guys are helping a lot

[dobro]

Excellent post and should be must reading for every forex trader. All too often I have seen a strategy chart posted that didn't exactly follow the rules and the writer's explanation afterwards revealed that he/she "saw something" that gave pause. Just remember, the least lagging indicator on the chart is the candlestick itself. d.

[Goinglite]

Originally Posted by maurizio77

Hi There,

I am pretty new to this, but so far i have found just two systems that work for ME.
The first one i use is the EUR/USD 45 pips a day system that was posted by James. I haven't ever actually got 45 pips from this system, but 20-30 is common..i trade $4 pips currently, so it adds up to about $2K a month....I owe James a ty for that

The second was one that i stumbled across when i was "playing".

I don't like complicated systems, as i find it slows me down at the most crucial moment and i end up missing pips and getting a bit frustrated.

I liked the EMA systems i have seen, but all too often they cross half way down a major move, and you end up catching the "tail" of the trade, or at worst, end up entering right at the point of a retracement!!!

I would not say this is a Holy Grail and it is not perfect. I have worked out that i win about 4 out of 5 using this system. But the winning trades are always much larger than the losing ones.

Anyway, let me know what you think...

So after playing about and watching the results, the closest to the move i could find was this;


Ema5 (White)

Ema1 (Yellow)

I have RSI (14), Slow Stocs (14, 3) and CCI (20) up too, this is just my preference, i use it to try and predict when a cross-candle will appear.....for this system i don't really need them.

I use this mainly on GBP/JPY on 15m, 30m and daily. (Daily is generally the most lucrative and predictable but requires patience, it can sometimes seem a small reward for such a long wait)


This is what i do;

I will wait for the Ema's to cross and for the timeframe on that "cross-candle" to have almost come to an end.
Once i have seen the cross, i am looking to enter as soon as the timeframe makes the step to the next candle, i will enter in the direction of the Ema cross.

If i am at my desk i will not use a stop ( i use a mental stop in this instance), if i am going to be away from my desk i will put on a stop of 3/4 of the cross-candle.
So say the cross-candle was 100 pips from OPEN to CLOSE i would make my stop 75 pips........if the cross-candle was 80 pips OPEN to CLOSE, i would make my stop 60 pips etc....

Take profits;

I tend to use a trailing stop, and as i use Oanda i have to do this manually. (unless anyone knows any different)

This depends on the timeframe you are trading on;

On 15m chart i use a trail of 10-15 pips, looking for an overall 25-40pip trade.

On 30m chart i use a trail of 10-15 pips, looking for an overall 30-50pip trade.

On daily chart i use trails of 25, 50, 100 & 150 pips, looking for an overall
2-300pip trade.

I just looked on my history and for my last 15 trades i won all but 3 using this system. 4 of those trades were on the daily and netted me over 200 pips each.

Let me know what you think,


Maurizio77

Not sure why you need a 1 EMA ?? Price closing above/below the 5 EMA is the same as a 1 EMA crossing the 5 EMA.

[TheRookie]

Just a note because I see the same question coming up a few times...

The cross "on a candle" really means the cross "during a candle". You aren't looking for the lines on the chart to intersect at a certain place, but just for the event to happen during the lifetime of the current candle.

I like my own EMA cross system and it too will generate a fair number of false signals, but as stated, they often reverse and re-reverse in short order -- especially on the shorter time frames that I'm watching. Similarly, I too watch things like the RSI, CCI, stochastics and bollinger bands to help figure out which signals are "real" and/or have the best odds of working out well.

It is true that if you watch a currency pair long enough on one charting time you can eventually develop a "feel" which is hard to explain.

Anyway, if you are a beginner, don't expect any automated system to be an easy path to riches for you. If it were that easy we'd all have done it by now...

[metalorn]

looks like a valid cross today on the eurusd:

[metalorn]

Hello,

I'm using IBfx. The 4h chart on eurusd shows a good setup for a short entry at 20:00 GMT. Stochastics is a bit oversold and CCI is also low, but both are pointing down. There is a level of support at 1.4700 so that would be my target. The current 4h candle is about 50 pips high so the stop loss would be around 38 pips. I'll include a 15 pip trailing stop.

rafa.

LAST MINUTE EDIT after 20:00 GMT:
I entered short at 1.4753, trailing stop=15, mental stop @1.4789

[metalorn]

eurchf short @1.6157, sl=1.6210
eurjpy short @1.6091, sl=162.0000
usdcad long @1.0528, sl=1.04800

keep an eye for
eurcad long 4h chart
eugbp short 1d chart