Ema Step System

Trading Systems
81

Hi Peeps :slight_smile:

I said i would keep you all abreast of the trade i was in.

I decided to exit my current trade today, as price was hitting resistanceā€¦andā€¦frankly i couldnt be arsed with the stress of carrying a trade over the weekend (I really donā€™t like doing that).

I said yesterday that i reckoned a 60 pip gain would be pretty good for a couple of days with rather crap price movementsā€¦well we got 73! :slight_smile:

The price seemed to hit resistance at 123.59 and stop. i looked at the 3Hour and the stochs were topped outā€¦that was enough for meā€¦i moved my TP down to 123.49 and it hit :slight_smile:

$350.00 for sitting on my bumā€¦anyone who entered this trade with meā€¦the drinks are on me!

Have a great weekend :slight_smile:

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82

Ok, i made a hash of that last picture, hopefully this will be easier to see :slight_smile:

83

thanks maurizio77

I like the channel idea, will give it a go. :smiley:

84

Welcome to the weekend everyone! The end of the week has braught in some nice pips.

[B]GBP / USD[/B]:

Well, like Maurizio said, we saw a nice little bit of action on this pair. As I didnā€™t get in yesterday, I missed the first 20 pips or so, and before going to bed (trading the US session is really taxing on us poor Aussies), I made the decicion to lock in 20 pips and ride the weekend. As it turns out I got stopped out before the price went back up again. Still, 20 pips in the bag is fine by me.

[B]EUR / CAD[/B]:

Yep, this was the real mover. Iā€™m sitting on 50 pips with the trade still open over the weekend. I really donā€™t care if it stops out, as 70 pips total for a Friday isnā€™t too shabby. That said, I think this pair has a good set of legs on em, especially given the strong Canadian jobs data released yesterday, and rising commodity prices (Oil is up over $70 a barrell).

85

nice going ben, my name is ben too lol anyways got the graveyard shift at work sorted now so will start to demo this system seriously in the next couple of weeks except I will be opening trades at around 10 to 11 pm BST. Have 3 systems to test this being the only day trade one, hope I can make it work for me as itā€™s def my fave!

Another system I will be testing I got the idea from a paid system I got free but in my version will involve Eur/USd, usd/chf and maybe gbp/usd. open a 15min chart and plot a trendline from 12 est to 3:15 est and trade in the direction of the breakout, if the first candle is above the trendline go long opposite if short. if trade goes against you by 6 pips reverse.

Take a look at the eur/usd and usd/chf chart from the 3:15 est (8am bst) with the trendline, looks sweet. I will poss use this system to compliment it too, say the cross is down will only take a breakout trade short etc

86

Gā€™day mate, good to see youā€™ve been following this system. When you do jump aboard, feel free to post your trade ideas here too. I figure the more people we have using this system and posting their ideas, the more chance we will have of honing each of our abilities to use it. Basically some of us might pick up trades that others have missed and some of us will be able to tell others if they have misread the signals or not.

I am also very interested to see just how much of an impact the timing of the system and what time zone different charting packages are in will have on this systems profitability. So Cryten, Iā€™m bloody well interested in how you go placing trades when you do.

I have been able to make a good percentage of trades profitable using this systemā€¦ what I need to learn is how to maximise my profits by deciding when is a good time to take a profit, and when is a good time to let the trade run (and with what size stop). Of course, I donā€™t want to put what capital I have already secured at risk.

-Benjimang

87

Gā€™day everyone. I usually find Mondays hard to analyse because there is so little price action goin on over the weekend. Iā€™ve had a look for some possible trades for the day and have really only come up with one.

[B]USD / CHF[/B]: Possible Buy

As there was not much movement over the weekend, itā€™s really hard to see a cross in the EMAā€™s but I believe they did yesterday and we have a little bit of bullish movement so far in todayā€™s Asian session. RSI is not over 50, but is certainly climbing, albeit at a fairly low angle. CCI has popped up over -100, but again at a slight angle due to the weekendā€™s slow pace. Stochs are rising out from OB, and look to be switching into ā€˜buyā€™ mode on the 4h too. Iā€™m not going to trade this one for two reasons:

  1. Itā€™s just too hard to see if a trend is forming. The signal is there, but itā€™s not a strong one.

  2. Iā€™m still sitting on my EUR / CAD trade from Friday and Iā€™m up over 80 pips on that one, so Iā€™m fairly happy with letting that run for today.

Actually looking again, it seems GBP / CHF is heading in the same direction with the same weak signal. Seeing that the Swissy is weakening across multiple pairs may be a little bit of extra confirmation for anyone. Itā€™s still too close to call for my liking.

-Benjimang

88

Hi there,

You wrote about ā€œā€œthe EUR/USD 45 pips a day system that was posted by James. I havenā€™t ever actually got 45 pips from this system, but 20-30 is commonā€ā€

Can you explain a bit about this system and where should I go to learn about it

sorry to sound backward I am new to this forum.

89

Hi Christo, the system is in the ā€œHoly Grails -> Free Forext Trading Systemsā€ section of these forums. You canā€™t miss it in there.

90

Well it looks like another successful day of avoiding trading :smiley: . I remember reading back a bit in this thread that Maurizio doesnā€™t really like trading Mondays and I have to support him on that. Itā€™s usually just too hard too see a strong signal. As it turns out, the possible USD / CHF trade wouldnā€™t have been a good one.

Well, the CCI turned up on my EUR / CAD trade in yesterdays trading so I took my profit at 80 pips. I probably could have had more, but that is WAY beside the point.

-Benjimang

91

this may be helpful, look at the candle (or bar) previous to the cross-candle if it was bearish and the cross candle is bullish (or viceversa) thats a good sign the trade can run for a while, for example EMAs cross goes down, the cross candle is red (bearish) and the previous candle is green (bullish) that can reinforce a sell signal, and viceversa. i backtested this in GBP/CHF GBP/EUR GBP/USD and EUR/USD in daily charts. What do you think? iā€™d like to hear answers from all users of this system but specially maurizio. And by the way thanks for your system!

PD> the colors are from the charting package i use (FXsol) just change them according to yours.

92

Today I have spotted a few crosses. The problem is that the three pairs I have looked at are all related, so I will endeavour only to enter on the strongest signals.

[B]EUR / CHF[/B]: Possible Sell

This would be my least favourite choice of todays pairs. RSI is flatlining ever so slightly above 50, but itā€™s too hard to tell which way it will go from that. Stochs are in OB territory, but they havenā€™t crossed into sell mode yet. Stochs on the 4h are below 50 and actually look to be heading into buy mode. Thatā€™s my biggest hangup. CCI is heading south toward 0. With the stochs they way they are, and having seen some bullish movement through the Asian morning session, Iā€™ll pass on this trade.

[B]EUR / GBP[/B]: Possible Sell

This setup is nearly identical to the above pair with a few important differences. RSI has ever so slightly dipped below 50 on this pair. Stochs have already curled over and are heading south from OB territory. Stochs on the 4h are in OS, but they seem to still be headding lower. Finally, CCI is under the 100 mark and has a decent gradient south. Couple this with some positive retail data from the Brits yesterday, and I think this one is a winner. Iā€™ll sell.

Please be careful with this one though. Remember that the Brits are releasing Trade Balance data today which could cause problems.

[B]GBP / CHF[/B]: Possible Sell

Again we are looking at backing the British Pound. RSI has nudged over 50 and CCI has climbed over -100 and is looking to pass the 0 mark soon. Stochs are heading north from a position under the 0 mark and still have some headroom to rise on the 4h as well. I feel comfortable buying this pair as the Swissy has seen a slight weakening over the past 12 hours across multiple pairs. Iā€™ll buy.

As a side note, my decision with this pair supports my two previous decisions. I also feel that my recommendation from yesterday regarding USD / CHF may come to fruition today, however this is just speculation and is not yet supported by this trading system.

93

Thanks maurizio77 for sharing your system. Are you just using the daily charts for entry or are you using any smaller timeframes to trade? Any changes in your system tweaks that youā€™ve made?

Iā€™ll be demo trading this system as well and would just like to know if there might have been any changes to it. I plan on trading on the daily chart and follow Benjimang analysis on pairs that he posts in here. Thanks as well Benjimang. It seems that you do check the 4hr timeframe as well. Do you use the same indicators as in your daily chart? Do you always do this to only check for confirmation and decide based on the daily timeframe?

Thanks guys any feedback would help.
Franco

94

Ok, it looks like the Sterling got hammered across the board at around 5-6am GMT. The positive trade data has done little to counteract this negative movement. On the flip side, the only suggested trade that I opted out of would be profitable by now.

francob604, please remember that I am not an experienced trader, so take what I post here as ideas only. I am trying to stimulate discussion on the real time application of this system. Oh, and I do look to the 4h timeframe to help me time my entry, but I base my decisions on the daily charts.

95

Ok so we saw some pretty large price movements in yesterdays trading. This has lead to many setups occuring across the board that will trigger this system. I will only comment on the couple that I will trade.

[B]GBP / JPY[/B]: Possible Sell

Well, this is the obvious one people. It is the pair that this system was created on, crossed down sharply yesterday and has been south-bound for most of the morning Asian session. Stochs are falling from an OB position, and CCI is falling below the 0 mark. I have noticed that the CCI downward gradient is lessening, so this may not be a huge run today.

Signals can also bee seen on the USD / JPY and EUR / JPY pairs (or even the Swissy cross). Iā€™m going with the pound because it has proved more reliable in relation to this system.

[B]EUR / CHF[/B]: Possible Sell

I wonā€™t go through all the signals, because they all basically point to a sell off. That said, the pair has been dropping for a couple of days now, so I will be watching this trade closely.

-Benjimang

96

Well Iā€™m pretty happy with the trades today. I have closed both positions with a small 10 pip loss on my EUR / CHF trade, more than offset by a 50 pip profit on the GBP / JPY.

With the global economy looking in such good shape, a lot of emphasis has shifted to carry trade strategies. Itā€™s important to remember the inverse relationship that high interest rate currencies like the Aussie (6.25%) have with low interest rate currencies like the Yen (0.5%). I have been using price movements in one pair to signal trade exits (and entry confirmations) on the other.

-Benjimang

97

Wow!

What an amazing few days. Ya gotta love the YEN! When it wants to move it M O V E S!

Made roughly 320 pips todayā€¦and thats even after getting stopped out a few timesā€¦and all i did was follow this systemā€¦with todays action i used ALL the timesframes from 5Mins upwards.

Have enclosed my trades of the last couple of days, the quantity may suprise you, what you must realise is that i was doing the GBP and USD simultaneously waiting for the support to kick in, so i traded one, banked the otherā€¦traded one banked the otherā€¦all the way downā€¦then partially back up againā€¦until my work demanded some attention LOL. (Has to be done sigh)

Anyhooo, am sure i wasnā€™t the only one making m,oney on the YEN todayā€¦how did everyone else do?

P.S,
The three hours are topped out but the daily is bottomed out, i reckon sheā€™s gonna fall a bit more, perhaps hitting the same support before the long climb upwards againā€¦keep an eye out.

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98

I back tested this system and it seemed sound. I used 1 hr charts and the EMA setup. For a 1 1/2 day period I had a 163 pip gain.

HOWEVER,

I demo traded this system on a 15 minute chart and it was a total failure. Of 9 positions that met the systems criteria two were profitable at 40 and 50 pips. I had one at 0, and the remaining 6 positions combined at a 505 pip LOSS. Iā€™m glad I demoed it.

Factors to consider are my trading times - Iā€™m in Japan and I trade during the Tokyo Session. It is Monday here. I traded the following pairs:
GBP/JPY
GBP/USD
USD/JPY
AUD/NZD
AUD/USD

Personally, I despise the GBP/JPY. A volatile, unpredictable pair that takes pleasure in defying oscillators and indicators.

Everyone else may be having better success due to their trading times or currency pairs. I donā€™t care for this system, though. I like using support and resistance and this system doesnā€™t place any importance on that. It seems to much like shooting from the hip.

Just my two cents.

99

Hideyoshi this system is geared towards the higher timeframes, you said yourself you made over 100 pips in a few days on the one hour chart then you switched to 15 min and lost 500. :rolleyes:

I am testing on 4 hour and above :smiley:

100

I didnā€™t make 100 pips, mate. I back tested it and saw that, had I traded itā€™s entries, I would have made 163 pips.

When the system was introduced it was stated that it could work on almost any time frame,including 15 minutes, but I believe thats wrong (and your right). This probably is a higher time frame system. Iā€™ve give it a go for a couple days and see what the cat drags in.

Lets us know how the 4 hour goes.