I have been checking some other indicators for this system, i noticed that slow stochastics can get you in the trade early and out of it early also. I noticed that Parabolic SAR gives a late entry signal on alot of currencies crosses. This does not apply to the Eur/Usd cross, just some of the other ones so far.
For an example, put up a Gbp/Jpy on 30 min, with macd, Para SAR, and add slow stochastics with it’s default settings. Look at Jan 22 bars, at 6:30 and 7:00 am. You will notice at 6:30 stochastics crossed, macd’s histogram bar closed smaller. If this is a signifigant way to read an early entry, that could have gained the trade by about 15 - 20 pips. Now i didn’t personally enter this trade, but i will be checking these out on my demo and checking the % that applies. I also recommend putting a stop lose 15 - 20 pips above or below your entry, plus the spread. Now sometimes if the currency is at a bottom or top, you would put your stop about 15 - 20 pips below or above the breaking point. I also recommend adding in a trailing stop if you have to run errands or anything, you never know, something could happen out of your control, better safe than sorry is my motto. I use a 35 pip trailing stop.
As i said i’m just getting started testing this method, i did 9 trades last night on James system with 7 profitable and 2 loss’s, with a gain of around 170 pips or so.
Any thoughts would be excellent or if i’m missing something, please reply.
I have noticed that using stochastics unfortantly gives alot of false signals, like i said i will be checking this system out. Thx