First I’d like to say that I’m only starting to use this system on demo. It looks good on backtesting though. It is inspired by James ‘‘45 pips a day’’ strategy.
Indicators:
5 and 10 EMA
Parabolic SAR
Simple, When both ema cross and the Parabolic SAR points in the same direction, you enter. That’s it.
It seems to work better on higher timeframes, I’ll be using it on daily, 8H and 4H (I use GFT they have a 8H chart).
SL has not been figured yet, but something like the previous candle’s opposite extremity looks OK.
TP I’m not sure, but on 8H charts they are multiple 200+ pips gain and 300+ pips gains on daily.
So there it is, simple and at an embryonic stage, but looks promising.
This method alone will produce too many false signals.
You need another good indicator or two to confirm these signals.
Perhaps add the macd.
A set-up could be: if psar signals trade, then if MA’s and macd confirm enter trade.
The key to your strategy is getting another accurate confirming indicator to confirm the trade.
Like I said, it looks good. I mean it looks profitable, but you’re right I should have said looks good only not a backtest. I’ll work on it and I’ll come back with the results in a couple of days or week.
