Ema Step System.

[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

[ForexNinja]

Hello Maurizio77. Thanks for sharing your systems. We appreciate you taking the time to write it out. May I ask how long you've been trading them?

[maurizio77]

Hi Ninja,

The 45 pips per day thing i have been doing since James first put up that post.........so since February at a guess.

What i like to call the "Ema step" i have been doing since the beginning of December.

I forgot to add on the last post that there are occasions where the price doubles back on itself immediately after the initial cross candle, this tends to happen alot near the weekends, some news announcements and in the lower timeframes...depending on what timeframe you are using......the longer the timeframe the less likely this is to happen.... but when it does happen this is easily "spottable" as the reverse cross candle crosses well before your stop is reached so you can exit the trade and wait for the next cross candle to step on.

I hope i am being clear on this.........i have never been the most articulate of people lol

[pippy123]

hi there,

thx for posting your system. I will test it out. but I am a little confused on how you came up with the SL. Could you expound on how you decide? Specifically the number you're taking 3/4 of...

[maurizio77]

Hi Sure,

I have attached a pic. This isn't the best example, but it is the first cross-candle i saw after reading your post reply.

The figure i take 3/4 (75%) of is the Cross-candle itself.

Now some profit-loss ratio traders won't like the look of this, as the stop can be more than the potential gain, however i would like to point out that i RARELY, if EVER let my trade hit my stop, you can usually tell if a trade is going pear-shaped waaaay before it hits your stop because the candle you entered on crosses immediately the other way, so i take a small loss on the chin.....and wait for the next cross....depending on the timeframe there can be from 1-20 a day.!!!!

The strength of this system, IMO, is that you can almost catch the very beginning of the movement so if it is a 30 pip movement.you'll probably get at least 20 of them.......and Yes it CAN flip the other way.......but more often than not this sytem catches the very beginning of a retracement too so you can get out early and minimise any loss on that particular trade.

At times you WILL lose on Forex, but you don't have to win all of the rounds to win the fight, just make sure you average better after 12 rounds then the market does.....How do you do this??......If a trade is going wrong get out!!!

Most people can MAKE MONEY on Forex, it's stopping it slipping away after you've earnt it that is the big problem.

Can tell i have just got home from work coz i'm jabbering...sorry lol

[pippy123]

ok, thx for clarifying

I didn't realized that you set your SL on the close of the previous candle- the percentage of that- now i understand...

I already made some pips on this system. I will let you know how i do, thx and thx for the pic that always helped that a lot too.

R

[amytrade]

The key behind any profitable trading system is very small losses and much bigger wins. I try to estimate my profit target before entry and always have 10 pip stops. If my likely profit isn't 20+ pips I don't take the trade. Yes I do miss trades, sometimes big ones, but it helps me keep my avg win significantly bigger than my loss and I feel also improves my win %.

Also if in trade it only goes up 5 pips or 10 or 15 and stalls I'll take what the market gives me and frequently exit half and then move stop up and if stopped out at least I'll avg 7 or 8 pips on the bad trades. Better than losses which I see a lot of people in the chat room I hang out do on same trades.

[Tamiil]

Hi
Last time nobody answered my question, so I'll try again. What does the value 3 after 14 stand for in bollinger bands? Is it for shifts or deviations?
Thanks.

[squirrel]

hmmm thread looks dead

[maurizio77]

Originally Posted by amytrade

The key behind any profitable trading system is very small losses and much bigger wins. I try to estimate my profit target before entry and always have 10 pip stops. If my likely profit isn't 20+ pips I don't take the trade. Yes I do miss trades, sometimes big ones, but it helps me keep my avg win significantly bigger than my loss and I feel also improves my win %.

Also if in trade it only goes up 5 pips or 10 or 15 and stalls I'll take what the market gives me and frequently exit half and then move stop up and if stopped out at least I'll avg 7 or 8 pips on the bad trades. Better than losses which I see a lot of people in the chat room I hang out do on same trades.

WOW...someone with sense.

That is the kind of attitude that will make this guy a success in FOREX.

There are too many people on here who think that a system will give you monstrous returns with no effort.

I have paid my dues with Forex. I have read all i can for nights on end, ignoring the ones i love, i have done all the testing i can, looking at figures, trends, retraces and indicators.
I eventually came up with a system that wins alot more than it loses.
This is it.

That said, this is not an automated robot that makes you money while you sleep, no system does that.....let me say that again....NO SYSTEM DOES THAT.

You need to be prepared to put in the hours and do your own research. Work out how you want to trade, what your risk is, and then trade off the results of that.

I am not blowing my own trumpet here....but you might have noticed that my posts on here are getting fewer and farther between.
This isn't because i have a crap system that i am embarassed about, it is because i am beginning to get to a stage where i really don't feel the need to post anymore.

There are always going to be people who can't get this working and who slate this system....**** happens. Fair play. Each to their own.

But there're plenty of others who have sent me emails saying thank you for turning my red account into a black account.


All i will say is..... Demo the system.

Look at how it makes money and how it can lose money.

Make the connection for yourself.

Then put it into action.