I had two good strategies which work good for me as short and medium term trader. one by mistake was posted in the wrong forum and now other i am posting in the right forum.
[B] The strategy parameters are the following:
[/B][ul]
[li] SMA 7 Close Just visual aid[/li][li] SMA 20 Close just visual aid[/li][li] SMA 65 Close just visual aid[/li][li] RSI 45 applied to weighted close that is HLCC/4 and only level 50 with no fixed limits[/li][li] Custom indicator MACD (12, 26 9) with level zero (Indicator attached)[/ul][/li] Time frame
4 hours for any currency pair
Entry Long and exit
when RSI crosses above 50 level and exit when it recrosses down 50
Entry short and exit
when RSI crosses below 50 level and exit when it recrosses up 50
The fuctions of SMAs and MC we will discuss during the course of discussion
please feel free to give your comments and evaluation with a purpose to improve it
Thanks and discussion is welcome
Please place your stops as per your currency pair, risk tolerance and time frame and for money management i have a formula which can be used which is as under(surely not my own formula)
Initial capital + (& x Lots)= amount where you can go to next lot
& is factor where you want to change to next lot
less this factor more aggressive money management is
more this factor is conservative money manage ment is
Larry Williams says it is the time that grows your investment and for that it is important to sit tight and wait for the growth, there is no short cut.
this system is sort of stop and reverse system and does not bother about market direction and volatility. it just tells when to get in and when to get out without bothering about the profits and losses and surely it is profitable. Moreover larry williams says that no one can ever give you the direction of market as simply God does not want us to know the future so by using this system you should always be ready to get in and get out as market conditions changes and your indicators tell you the same. strict discipline for rules would be the deciding game of loss and profit
This RSI on candle or bar closing basis and what mean by optmization
and those who have patience can plot RSI 14 close on the 15 M chart and can wait for the same to turn 50 level in the same direction and than can initiate position.
Moreover MC that is MACD will never take sharp turn so after initiating the position you can wait till MACD cross turns opposite only than exit if position behaves adversaly after initiating otherwise have smooth ride till system tells you to exit or you desired target is met.
I initially started with lot many indicators on the chart and than slowly and gradually have been assessing there uslessness and duplication and than been throwing them away. after lot of efforts i realized the trading fact that simpler is the better and more understanding as comapred to difficult one. This is my final strategy.
The MC indicator is not stoch but it is MACD. some one said for better trading try to concentrate on two time frames only for any currency pair and maximum of two indicators and that is really true and actual trading sense.
mc.zip (916 Bytes)
