Bonez00's 15M System

Hi all!

I’ve been reading and studying the forex market for a while now and have come up with my own system. It has steadily made me about [B]50% a month [/B]for about half a year now and I’m doing quite well. Though I do get losing trades, my [B]winning/losing ratio is generally 5:1[/B].

First off, I only trade from [B]6am to 12pm EST [/B](I am in Toronto, Canada).
[B]Each trade risks 5% [/B]of account equity. I only open[B] 1 trade at a time[/B].

[B]Step 1:[/B]
[B]Directional Signal [/B]- I take my direction based on where the 15 minute MACD crosses. Say it crosses up, that is an up signal.

[B]Step 2:[/B]
[B]Signal Confirmation [/B]- I wait for the price to break above the 21EMA on the 15M chart to confirm the directional signal.

[B]Step 3:[/B]
[B]Enter [/B]- Calculate 5% risk and enter trade accordingly.

[B]Step 4:[/B]
[B]Exit [/B]- When the 15 minute MACD crosses in the opposite direction, liquidate the position immediately.

I like this system because it is [B]simple[/B]. It is not perfect but it allows you to capture MOST of big moves from near the beginning to near the end.

I’d like to hear [B]opinions[/B], [B]critiques[/B], etc. Thanks all!

bonez00

Thanks for sharing your system bonez00!

Do you have a chart you could share of an entry and exit trade?

What pairs do you primarily trade?

What is your TP and SL?

GL! :slight_smile:

Hello bnbb2004!

This is an example of a trade using my system.

[B]Line A [/B]sees the MACD begin to diverge downwards.
[B]Line B [/B]sees the red candle close below the 21EMA. This would be your immediate entry point. In this case, it’s at 1.6056.
[B]Line C [/B]sees the MACD begin to converge and is our exit point. In this case it’s 1.5956.

So this simple trade would have netted you 100 pips on this one GBPUSD move. Not bad eh!

I usually trade all 6 major pairs, including the GJ and EJ. Generally I keep my SL at around 20 pips, or you could use the 21EMA as a trailing stop loss. TP is open to whenever the MACD tells me to close.

Oh and if you look at all the major crosses, they would have all made you 40-100 pips just as the markets were closing today :smiley:

I eyeballed some 15M charts and your strategy gives some good pips when the EMA shows a strong trend. Spikes can get one stopped out but that’s usually the case anyway. Is your MACD settings default? Is the EMA set to close? Do you wait for a close above/below the EMA for entry or do you use the MACD to enter immediately? Two other things I like is that I am in the Central Time Zone so I can trade the same hours for the NY session & it’s the 15M, a good balance between 1 & 5M scalps or the 1H longer strategies. Keep us posted & I’ll try a micro lot for testing purposes. It does seem to want a nice strong EMA slope (direction.) d.
I see in Post #3 you say closed for the candle so one question is answered.

What MACD settings were you using? I’m interested in testing this on a demo MT4 account as I’m also in the Central time zone.

Not the best looking setup as the overall trend and volume is flat but I got a close below the ema21 and corresponding Macd at 05:45p.m. CST. Sold @.9869, TP @ .9840 & SL@ .9888, all with Oanda. Again, a bit early for the Asian session but I shall see how it plays out. At 06:54 p.m. I am -4 pips. d.

Hi

Can you give your comments about this setup from this UK open Today ?
I see that in the left line - the MACD started to go up and after that we have close above the EMA so we should enter buy …
In the 2nd line - the MACD started to go down and the price closed below the EMA so we had to sell …

In that case we got 2 stop loss - does this setup correct ?


If I’m reading post #1 correctly, and I might not be, then one must wait for a macd cross & a confirming (same direction) ema cross and close. And that makes for few trades, trying to find both crossing in the same direction and at the same time. Hopefully bonez00 will pop in and make some comments. I only got 9 pips from last night’s trade as I close it as it was reversing. Better a small profit than any kind of loss. d.

dobro - thanks for the comment but I still think my image is going acording the rules, maybe most of the times its not like this.

The rules in your first post mention an MACD cross, but in this trade example there is no such cross, just what you call the MACD beginning to diverge downwards. Are the rules fixed or discretionary?

I’m thinking discretionary now - at 07:00 CST I bought the GBP/$ @ 1.5813 & hit TP (barely) @ 1.5830. The Macd was heading up and close to but hadn’t hit the zero line at that time. So mayby, just maybe, a diminishing Macd close to the zero is ok. I wonder if Bonz will check in and comment? d.

Not many traders can think in a discretionary manner.