Hello,
I’ve read most of the thread, and I’m quite intrigued by this system. I’ve yet to test it, but I’ve also found the research made by Robopips and the results were not bad at all. Is there someone who is trading this live after all these years?
If you all are interested in moving average crossover systems, I recommend checking out:
- Robopips’ SMA Crossover Pullback System
- Pip Surfer’s Cowabunga System
You can follow their posts as they trade their systems day-to-day.
3 Likes
One method of sizing a trailing stop is by measuring recent retracements and making the TS larger than the largest. That way, the price move is likely to survive a number of retracements. This method is espoused by John Barrett, here: How to use Trailing Stop-loss?
Happy trading,
Norm
1 Like
RSI (10 - Apply to Median Price: HL/2) – One level at 50.
Please excuse my newbie ignorance but this "Apply to Median Price :HL/2 --One level at 50 has me confused. No problem with RSI 10 or other indicators but …Yes I know it’s simple, but only if one has experience. Thanks in advance
The setting for the RSI is 10 periods (of whatever TF you are using).
RSI is an indicator that moves within a range of 0 and 100 (%). Its standard settings usually include pre-drawn horizontal levels at 30 and 70 (or 20 and 80). The idea being that when the line passes above 70 then price is overbought and below 30, oversold - in other words reaching extreme levels where a pull-back is likely.
But in this system the only line drawn (or needed) on the RSI is a horizontal line at the 50% level. This is used as a confirmation whether the price is moving into positive or negative territory and should be considered in conjunction with the crossover of the MA’s. I.e, the crossover is the primary signal and then the RSI level is used to validate the signal, (the secondary signal).
If the MA crossover occurs without a confirming RSI cross through this 50% level, then the MA signal is considered to possibly be false and suggests caution.
Example:
Thank you Manxx.
My problem is inputting the 100…50…0 settings on the IG Demo platform
I am not familiar with the IG platform but the 0 and 100 lines should be there by default since these are the extreme values for RSI.
I would guess that in the parameters box for your RSI indicator there is box for the 70 and 30 lines that you can adjust. You can set these both to 50 (or if it won’t accept the same value for both, then input, for example, 51 and 49)
You can also draw a normal horizontal line over the RSI window with the value of 50.
For example, my platform’s parameter box looks like this:
Thanks for your help Maxx, but it looks like the RSI is set @ 70…30 on IG platform. (ALL)
I will try to sort it with them as this thread is running a long time and the system seems to be a winner?
Am I correct?
Not for me to say @Mickbuffet2 - I don’t trade this precise set up personally, but my own is indeed rather similar.
But I would definitely say that this is not automatically a winner!
It is a discretionary system in so far as the trader subjectively evaluates the merits of each signal and selects those that are considered viable. Also each trader will have their own criteria for their exits e,g, where to set stops and targets - and that means every trader’s results will be different.
The basic concept here is logical but it requires a market that is either trending smoothly or ranging over a very broad range in order that the MA’s stay apart long enough to produce a profit, Otherwise the method will just whipsaw rather painfully. This is particularly important with short TFs where signals occuring during the main LDN and NY sessions are most likely to produce results. Other times, and public holidays, and days before important data releases should always be treated with caution!
This means the choice of currency pairs is very critical to the success of this method and one approach to this aspect might be to study the thread here on BP called: " Trading the Trend with Strong Weak analysis". This will give you some ideas about which currencies are currently trading strongest against each other and perhaps offer the most potential.
The RSI is one filter and this method does need filters. But there various ways that one can achieve that.
Here is an example I just happened to spot where you can see the RSI filter worked and did not confirm a very small crossover on a 4H EURJPY chart (the RHS circles).
Hi @anon46773462,
You seem to be quite active in this thread. I see you’ve written that you do not trade this system but your system is quite similar to this one. I am wondering if you would be interested in sharing your system?
1 Like
[quote=“jas0992, post:701, topic:19403”]
You seem to be quite active in this thread. [/quote]
Actually, I haven’t been active here at all - I just wanted to respond to the RSI issue. In fact there has not been much activity here for a long time if you check the dates! 
(not that that means it is non-functional!)
This thread is about a specific method and therefore it would not be right to deviate from that… but thanks for the invite!
Thanks for your reply. I understand if you don’t want to share your system. I liked this system as its mechanical but there haven’t been any people lately saying that it works and I want to put my limited resources in testing a system that people claim works. Cheers!
You might like to look in on this blog on this site. She is using more or less the same method on 1H charts. she provides a weekly update on the trades taken and the results:
https://www.babypips.com/trading/forex-hlhb-system-explained
Thank you Maxx.
You have been ever so kind and helpful.
I will scout around this site to find your own system, now that I’m getting the hang of this place.
Seemed daunting at first, but patience and perseverance brought the snail to Jerusalem, not that
he was a welcome visitor AFAIK.
You are a good person.
I don’t have any thread for my own system. I mainly post charts only to illustrate points.
My belief is that the best “system” for any trader is in their own heads - they just have to create it and develop it. But, of course, everyone has to start somewhere and I think this is a good method to start with because:
It is simple and clear.
It is flexible and can be applied to various timeframes (although 1H is perhaps the shortest)
One has to decide one’s own exit strategies
One can easily use (and should use) Price Action techniques
One needs to develop a disciplined risk:reward ratio
The downside is not overly severe for smaller account sizes
But, like any method, it should always be practiced on demo first to develop entry skills and exit and risk strategies before risking real money.
2 Likes
You are a wise person.
Thanks for everything.
You need to use the search button bro. Thats what’s its for. None off us are going to do the work for you.
1 Like
Thanks for your message. But Manxx has already replied to someone else saying “I don’t have any thread for my own system.” And I don’t know how to search for someone’s system when I don’t know its name. I appreciate your input.
I’ll get you started bro
1 Like
Hi Bob!
Actually, Raj’s Ribbon system was not intended as a trend-riding method. It only looked for a certain immediate follow-through after the ribbon flip. But it was (is) a simple method of catching pips.
None of the people I knew who were using it ever used it alone and it does need filters in the same way as this crossover method. An MA ribbon in some form or other is still a component of my trading approach from Daily to 1H timeframes ( I usually hide it whenever I post charts to avoid confusion! :)) - but I don’t think it is reliable at all on TFs below 1H.
It is also a relevant issue to try and be selective regarding the currency pair chosen. A lifeless, drifting market will not produce anything more than false signals, losses and a lot of frustration! (but the same goes for all these types of methods!) 
It is a long time since I read this thread through and there has been some good stuff here over the years - I might just plough through it again and see if we can’t resurrect it in some form or other…could be an interesting project!
1 Like