EMA Breakout on all currencies and timescales

Trading Systems Free Forex Trading Systems
1

This is a system that I have found else where and thought I would share.

Indicators
Ema 3
Ema 5
Ema 7
Ema 9
Ema 11
Ema 13
Colour yellow

Ema 21
Ema 24
Ema 27
Ema 30
Ema 33
Ema 36
colour Green

Ema 55 Colour Red

If the group of yellow EMA’s go OVER the 55EMA - BUY
If the group of yellow EMA’s go UNDER the 55EMA - SELL

When the yellow and green EMA’s touch, this means that there will be a strong change in the trend at that point.

I take a 10pip profit but as seen in the attached chart you can let it run as well.

For stop loss, take the point were the last yellow EMA crosses the 55EMA and add 25pips.

EMA.jpg700×541 92.8 KB

2

So you’re risking 35 pips or so to gain 10?

That’s a spooky proposition…

3

You can also let it run for a good period of time, I just perfer to take the 10 pips and go.

4

Thanks you for the post.

5

great share. does this also do well in ranging market?

10

I am no expert… but if you like trading using EMAs, I am certain you can get 10 pips with just one ema.
Give 10 EMA a try. Buy when the candle closes above it and sell when below it. :slight_smile:

Just my 2 cents

13

Hi aidy
Am investigating novel way to use your offering. Will post once firmed up + results of simple script plots. Actually, will take further if looks ok. I’ll plugin to multi symbol EA testbed and forwards test on Alpari UK demo feed for awhile.
With 24/5 running + any number of ccy’s able to be handled, it won’t take long to get some results!
Should anything mature, I’ll post.
Thanks again for taking time to offer what is in effect a simple yet, for me at least, thought provoking idea.
One needs to follow up posts such as yours which look interesting, with practical tests which can give more clarity to this ‘interest’.
Cheers

edit:
I 4got, over the years I’ve come to realise that trade entry is in many ways, a ‘no brainer’. What matters is when to exit or indeed, part take profit point(s) and then exit. tbh, I’d not care at all about missing out on 50 or whatever point runs IF only, I can consistently/high %, do the hit 'n run enter and exit. My point being, with ability to auto trade many pairs at once combined with a system that gives even just one [on average] high quality trade entry per day and taking a small yet consistent profit well… multiply by number of pairs and all of a sudden what appeared at first glance to be a measly few pips profit becomes significant - especially with compounding and sound MM.
Long time ago, a very successful manual trader told me that is not the number of pips but the consistency of their acquisition. His system made over 87% (achieved for many years too!). Of course he was special breed of trader - no indicators, no nothing on chart except candles and S/R + Trendlines.
Think about it - 10pips per day with compounding going on and the per trade volume will soon snowball until micros become minis which become standard lots and all the while never ever risking more than 1 or 2 % equity per trade.

Pure m.a.g.i.c. :eek:

so wats this to do with aidy’s system? well, it easily shows entries, some should be filtered out but the others are indeed worthwhile and that’s what [as usual] bugs me… the damn exit :confused:
Especially if doing ‘unattended’ auto trading on many pairs at once!

So then, any suggestions on your fav exit strategy - let’s post 'em here, OK?

Especially any that can become EA’ized with reasonable ease!!!

15

This looks good…the risk to reward ratio may be poor but the conservative approach of a ten pip profit increases the hit rate by some margin. Thanks for sharing.

16

I think too often trades worry about the risk and reward they want to see a 10 pip risk for 30 pip reward when really its the risk to reward and the strike rate that is important. If you are risking 2 to make 1, but you get it right 90% of the time then you are set - so dont let the risk of 35 to make 10 put you off working on this system.

Exits… as you are only looking for say 10 pips ish then you really need to have an exit that gets you out while its still going up - sure you miss some upside, but if you are only going for 10 then you cant really wait for a retracement or you’ll lose too much of your profits.

17

Your chart shows the 1H TF, is that the preferred or are other TFs possible with this setup? d.

edit: Another question - are you trading this or just sharing?

19

I had two minor plus trades this a.m. - the markets to me seems to be drifting. And also as I am just starting to trade this strategy I am being super cautious. At first I was put off by the reverse risk/reward ratio but the more I thought about it I came to this conclusion: We are to treat trading as a business and after starting up 3 outside sales type businesses I always started in the hole, ie, start up loans, office equipment, etc. so now the risk/reward is not troubling to me. Just some random thoughts and thanks for all of the above posts. d.

20

Well, I cant say that i have ever seen something like this. Would be a good thread to follow. Please keep posting

21

How come I cannot see any of the trading systems posted on babypips? EG I go to a thread and the number 1 post is already talking about how good the system is and how it should be traded. :confused:

I am registered.

22

[QUOTE=Daveb;221323]How come I cannot see any of the trading systems posted on babypips? EG I go to a thread and the number 1 post is already talking about how good the system is and how it should be traded. :confused:

I am registered.[/QUOTE]
Hi Daveb

I may not understand you correctly, but if you are expecting a mechanical step by step guide to making loadsa money, then this is not what’s on offer.

These things gotta be worked at.

This ‘system’ is just a bunch of moving averages - nothing more, and the poster has ‘discovered’ that by doing what is detailed in the post, that profit is available. The post details exactly how to setup the chart. It specifically states when to enter and exit (as done by the author).
What mean by: "…I cannot see any of the trading systems…"
The post describes the system and also shows a picture. What else can be offered?

Often times the ‘method of trading’ is subjective and open to varying interpretations. eg, I read post 1 and was intrigued, so I go away and plot what was posted and just sit there looking at the chart getting an idea as to how it plays out. What I personally decided on was that yes… there are certain patterns that appear regularly. However - sometimes these patterns cause loss and do not, as it were, conform to expectations! So, one looks at the chart more and attempts to consider if there is a general condition which might highlight these loosers. I find it to be an iterative process - just like a while/for/until loop.

For me, I’ve now learned about GMMA and Guppy and the trail goes on. Had I not seen this thread and got interested in post 1 in the first place, I’d not now be seriously knife and forking ideas/coding for GMMA,Guppy and Hull.

I reckon that there is much to be learned in this thread’s first post and what it [in my case] has done to lead me onto in the week after. I’d just never ever have seen Guppy, GMMA etc. had I not pursued this post 1 and just 'kept beating the cr*p out of the thing - constantly looking for a way to overcome the duds it can signal. I just kept searching and one step led to another…

Best

for interest - unzip the attachment, put the .tpl file into <your MetaTraderInstallDirectory> emplates
eg, mine is: C:\Program Files\MetaTrader - Alpari UK - RUN ON DEMO ONLY emplates
You may want to exit and restart Terminal after doing above.
For a test, get a new chart up, say EURUSD,M15 and now apply this template to the chart… NOTE:to alter chart visually, <F8> will allow you to change [B]Bar Down:[/B] and [B]Bar Up:[/B] so can see price… However, is also good to just [U]look[/U] at the initial template and start to notice stuff.

(full credit goes to author:
www forexfactory com/showpost.php?p=66986&postcount=7
ya gotta ‘put the dots back into url’ - I’m not allowed to post pukka url’s yet :frowning:

Is interesting chart?

24

Hi,

No mate, it is not about trading the system. I viewed a couple of threads and there was no clear indication as to what was being talked about. EG on the number one post people where referring to a system as if they had been talking about it in previous posts (and there was no previous posts). So in other words I hadn’t a clue what it was they were talking about.

Hope that makes sense:-) If it doesn’t, forget it, just trivial stuff.:slight_smile:

25

Daveb
Ok no probs. Most times I’m in the ‘no clue’ realm anyway ;/
I’m flipping between this threads post.1 and Guppy/GMMA as the whole area is simple yet does seem to mirror the ebb 'n flow of the market. I really like the expansion and contraction of the slow and fast groups of ma’s and what saying. Also what the next higher TF shows.
Price of course is showing this all in real time but perhaps a bit of the historical influences shown with mma’s is good too.
I hope to post some results soon but of course - gotta be of interest :eek:
Cheers

26

I now question the risk/reward ratio; I’ve had 3 trades for +7 pips & one for -30 pips. I use the 5M to confirm the 1H & look there for strong confirmation but I’m in the hole now. My 3 trades were exited because either the pr started going sideways or making major retracement moves after I was initially in profit. The loser never really got started to plus pips. And I use Oanda which has the tighest spreads short of a true ECN.

Any suggestions would be appreciated because i think the GMMA is a good strategy although I haven’t done well with it either so I thought this simpler idea might do the trick.

27

@dobro
Have you had look at chart using template from attachment on post#14?
eur/usd M5 is interesting but of course maybe you like larger timeFrames.
Some ideas I’ve used:

  1. google “guppy mma” for loads of links
    and perhaps:
  2. www forexfactory com/showpost.php?p=66986&postcount=7
  3. www forexfactory com/showthread.php?t=5933&page=3
  4. and last but certainly not least: searching babypips with just the word “guppy” gave 121 results…

fwiw: I am finding it worthwhile reading the forums and what the live traders using mma’s do, their observations on a chart etc.

28

I’m gonna bump the thread because the system seems to be pretty good other than the fact that we have no exact exit strategy and TF’s. I’m gonna use the 1H TF on a few charts and see what’s up. I’m sure this strategy could be optimized to gain large amounts of pips safely and have a good exit and re-enter strategy.

-Mikey G

29

The original thread starter uses a fixed T/P exit strategy.
It works but many see these great runs and then the problems begin, do to sweating over the how’s of staying in longer.
The TF can be any - I’m currently pouring over the M5 using the template in post#14.
The MMA movements show when to get out if time taken to ‘see’ what they have to offer. Additionally, much info on web + other forums available which shows how to ‘read’ the MMAs movements etc.

Am not saying it’s a ‘piece of cake’ to interpret their movements but they certainly highlight some very interesting trade [and] exit points…

Will be interesting to see what you come up with.

Good luck!