Bob Volman Exponential Moving Average Strategy On The Daily Chart

The Purpose Of This Thread
The purpose of this thread is more so for me as a trading journal and also is to share with everyone a strategy to use on the D1 chart.

By going through this thread, you will have an understanding of the strategy used here.

I have been backtesting this for the last 6 months while also trading alongside my own strategy which has also been shared here (Bollinger Band & Price Action) and the results have been outstanding so I thought it’s time I start a fresh account and run this strategy solely on it to see the results it can return in the coming months.

For those who have read my other threads, you’d know that I trade the D1 chart exclusively. So I won’t write it up here again. But if you’d like to read up on why I trade the D1 chart only, feel free to look up my other threads :smiley:

The credits of the strategy of course go to Bob Volman and his book “Understanding Price Action”. If you haven’t read this, go ahead and do so as it’s a great read.

The Strategy
Essentially Bob Volman’s method is a scalping method on the M5 timeframe using the 25 EMA, but as I will be trading on the D1 chart, I have decided to utilise the 21 EMA as it sticks to price rather nicely and price seems to respect it very well during a strong and consistent trend.

Whenever price is trading above or below the EMA consistently, it’s considered a trend, and our opportunity to trade is when price return to the EMA, respect it, and “bounce” off it nicely. The candle that breaks the trendline/support line/resistant line or fills in the last available empty space between the above-said lines and the EMA, is our signal candle.

When price cuts up and down the EMA constantly, we are in a range and as this is a trend-following method, no trades are to be executed.

Trade / Account Rules
A few trade rules I will be following:

  • An UPTREND valid when price is trading above the 21 EMA consistantly
  • A DOWNTREND is valid when price is trading below the 21 EMA consistantly
  • A RANGE is when price is constantly cutting up and down the 21 EMA and no trades are to be taken
  • All trades will be taken at 2% risk and profits will be calculated based on R:R and % returned
  • A summary of current running trades and potential trades for the coming week will be posted each weekend
  • A new post will be posted everytime a setup present itself and also everytime and update is made to each open trade
  • No Take Profit (TP) will be utilised, all trades will having a manual trailing stop to maximise profits
  • All trades are to be moved to Breakeven (BE) once 1:1 R:R has been achieved

Disclaimer
Obviosuly this goes without saying but, none of the post in this thread is financial advice or so-called “signal” for you to enter into a trade. Following along if you wish at your own risk.

Questions?
Feel free to shoot me a DM or ask in this thread if you have any questions, I’m happy to answer any that you may have and help as many people as I can.

As I have said above, if you haven’t read the book “Understanding Price Action” by Bob Volman, go ahead and do so as I do highly recommend it as it will also explain a lot in detail about the setups that will be presented here.

2 Likes

#EURUSD

6 May 2021 - Trade entered.

7 May 2021 - SL moved to BE.

1 Like

#USDCHF

6 May 2021 - Trade entered.

1 Like

#GBPCHJF

7 May 2021 - Trade entered.

1 Like

#OIL (WTICOUSD)

27 April 2021 - Trade entered.

28 April 2021 - SL moved to BE.

4 May 2021 - Trailing SL moved to 62.889 (yellow line).

1 Like

#US30USD

3 May 2021 - Trade entered.

6 May 2021 - SL moved to BE.

1 Like

NEW SETUPS (10-14 May 2021)

#AUDUSD - 1/2 Position 1% Risk ONLY (Riskier setup)

#EURUSD - 1/2 Position 1% Risk ONLY (Riskier setup)

1 Like

Hi, This is interesting. I just finished reading through the thread you started in Sept. '20 about your Bollinger Band strategy. It sounds like you’ve simplified the strategy down to just following the 21 EMA, is that right?

How’s this one going for you? Thanks for sharing again.

i’m currently trading with Bob Volman method like you. I trade personally in D1 with 21EMA too, what a motivation to go together!