well… thread look interesting… will try this method for today.
Well, maybe that’s a bold statement. Let me rephrase that and say that for the most part they dont work. I wrote a quick script based on “Phantoms” rules and ran some backtests. From June 1, 2011 to date (Feb 7, 2012) I could not get the system to LOOSE LESS THAN 1000 pips during that period, no matter what kind of risk management I applied.
One thing that had to be considered is the general direction of the market. Why would I go short and look for 50 or 100 pips if the market is in an uptrend? Just because the “5” crossed the “10” and RSI was over 50? Of course the RSI is going to be over 50…the MA’s lag price, by the time they crossover the RSI should be over 50! What about if the market is in a 150-200 pip range? By the time the MA’s cross there is not much room to run before it turns the other way.
The chart shown enters trades based on the “Phantom” system. It uses a 25 pip Trailing Stop, but will take out profit if it makes it to 75 pips. But it really doesn’t matter where you set your stops and limits, it is not a winning system, just like 99% of all crossover systems.
There are crossover systems that work. But you’ll have to have nerves of steel and deep pockets, they typically have DEEEEEEEEP draw downs. So if you’d like say a 15-20% annual return, and can ride out a 60% account draw down then a crossover system is for you!
Same parameters except will only take longs if EUR/USD is trading above the 200 SMA and short below 200 SMA, so we are going with the prevailing 1 hr trend for the most part. Shaved 900 or so pips off the loss column. Act III coming up next…
OK, so we see what happens when we apply a little common sense to our entries. But now I am going to destroy everything we’ve learned about trading (I hope I dont get the boot from Baby Pips. I just got here!)
So what I did was take Phantoms system with my 200 SMA filter and applied the golden “3:1” Risk-Reward-Ratio, 100 pip profit 35 pip stop. Add the results were…drumroll…-875 pips! Another ticket to the poorhouse!
But this is not my first time to the rodeo, there is nothing better than to have a system the just plain stinks over the course of 8 months. Why? Because now I know I can do exactly the OPPOSITE and the system should generate a profit. So I changed my parameters to SELL when we get a cross-up and RSI is over 50 and BUY when we get a crossdown and RSI is under 50. Also we take a 35 pip profit and set a 100 pip stop.
I call this a “Falseover”, meaning that I know that crossovers are the death of many a trader. It just makes sense to go long when we get a cross up. It makes sense to have a 3:1 risk reward ratio. 95% of all traders adhere to this logic. Guess what? 95% of traders loose money. Are you seeing where I am going with this?
The “Flaseover” system generates 669 pips of profit with a modest 204 pip drawdown over the period. Not a 100 pips a day, but not bad either. Sexy little equity curve…
Hi guys, I am happy u are here. I am from Owerri. Good to meet Naijans here.
This system has helped me a lot. It similar to cowabunga. Babypips are great people. I am comfortable here.
Hi
Would you be able to advise on setting up the indicators?
Thanks!!
Sapple,
Check for the indicator settings in Post #1 of this thread.
Truely this system has been given, but you need to study it and if possible add some twist too .
For example, I added stochastick to know when price is at the overbought or oversold to possibly believe there could be a reversal.
Secondly, I changed the EMA10 to EMA15 for the crosses and use the EMA10 to act as my support and resistance.
Now see what I do:
I enter LONG when the EMA5 crosses EMA15 and the price has break through EMA10 from under,The RSI should be above 50 and Stoch has left the over sold.
I enter SHORT if EMA5 crosses EMA15 and the price breaks through EMA10 from above. RSI also crosses 50 from the top and Stoch has left the overbought slightly.
To be candid, I trade on M15 but use H1 and H4 time frame to reconfirm the trend.
You are liable to make your own changes to suit your trading style. See attached chart.
<a class='attachment' href=''>cn.bmp</a> (488 KB)
5 EMA ---- RED
15 EMA…BLUE
10 EMA----GREEN.
I’ve developed an EA based on the default settings being the crossover of 5 EMA and 10EMA and 50 RSI.
I wasn’t able to develop a profitable system based on this, so I have included another parameter. The 200SMA.
It only trades long if above the 200SMA and short if below. It doesn’t have a set TP or SL, instead it exits the trade when the lines cross back on themselves.
You can follow my progress at MT4i - Liveforextrading.info EMA Crossover EA - Beta Test
If it’s profitable on a forward test then I’m going to be trading it in my soon to be released live trading room.
Cheers,
Nick
eagerly waiting to see some results over there of ur EA
but this kind of system usually gives a lots of false entry signal and at those moments human thinks it’s looking all good to enter but soon after we realize that was a trap and rest of the story is loosing some of our hard earned cash the the trading floor is well know to us. I need suggestion from you, do u imply any indicator or method to subtract those false entry? atleast some of those? i tried and still trying but no light of hope from mine side.
Thanks and wish u best best best of luck with that ea.
and u deserve a sweet thanks for developing that kind of truly complex programmed EA by own own mind and hand.
U did the best.
Hey, I am also using this system, it’s very2 great but I’m hunting just 10-20 pips by using 40% of my balance. The result is awesome ~!! I add stochastic (5,3,3) to predict to trend but still rule of the line crossing and RSI have to be applied first
Hi Phantom,
What if RSI doesn’t cross 50 on the EMA crossover candle, but on the following candle?
Thank you very much,
Alessandro
Hi Turtle Forex,
what software are you using for the above analysis. What language is the script in and have you come across Act Forex and their language, based from pascal?
Hi hope you are doing well, how is your Amazing Crossover System going so far since you created it? have you made any changes to avoid fakeouts? Please update me. Thanks
Kind Regards.
FM
thanks forex phanthom, U R A TRUE HONEST CLEAN HUMAN “PRICLESS U R”…:40:
i will test this system this week.
who utilises it too ? And for good results ?
thanks
(sorry for my bad english)
very very kind of you PLEASE NOTE MY FRIEND ENGLISH OR ANY OTHER LANGUAGE DOES NOT MATTER, WHAT MATTERS IS THE LANGUAGE OF THE HEART “LOVE”… arvind
Hi FOREX PHANTOM, its been about two and a half years since you released this strategy! Are u still using it? Does it remain profitable?
the wise speak only a few words FOR IN THAT LIES THE CORE OF TRUTH “TRUTH IS SIMPLE, UNBELIVABLE…HENCE V COMPLICATE OURSELVES IN THE SEARCH OF THIS SIMPLE TRUTH TO COMPLEXITY, HELL & DOOM, BECOMING THE PREDATED TO THE FOREX PREDATORS”
I need to test it… mates, have you got any screenshots?
I am using 10ema with macd and synergy TDI basic and earning at least 400 pips a week… try this.