SOLD the EUR/USD last night (1.32217) after I had posted about my return. I figured out a really good entry point (a way to make the MACD moving averages much stronger).
Anyways, I had $1,000 starting capital, placed trade for .01 lots. Came back this morning and I’m up $10 (price is at 1.31200). Still a demo account, but I want to open a small live account soon. The only trouble is that I need a broker that allows small microlots due to the design of this system. Any ideas?
** Making the Entries Even Stronger **
Originally, I had recommended moving averages of 1 and 4 on the MACD. Some of you changed these averages to 2 and 8 --> which gives you a stronger signal. I entered my current trade after changing them to 5 and 10. This provides an even stronger signal. Just food for thought.
My previous SELL for EUR/USD stopped (trailing stop) for +102.5 pips.
Equity growth: +1.01%
Next trades:
buy usd/jpy @ 97.785
buy usd/chf @ .93668
These may have been bad trades as market might not be trending strongly. Also these two pairs seem negatively correlated with each other. We’ll see how it pans out.
I’ve got two trades I’ve kept open over the weekend.
USD/JPY => +9 pip
USD/CHF => -29 pips
Hopefully they’ll both move into profit when the markets open up. I’m leery about the USD / CHF as the market seems to be sideways right now for that pair.
The SHI channel seems to be really useful for identifying trends.
My trades are starting to come around. Looking at the price action, I’m a little more confident in the USD/JPY pair. I’ll probably take a quicker profit with respect to USD/CHF. I may let the pips run in the USD/JPY pair (perhaps a 75 trailing stop).
I’m starting to remember why I liked this system so much.
No good trades are on the horizon. The only few trending graphs I can find are pairs I’ve already traded.
I’m eager to keep trading, but I will not rush an entry. Therefore, we must wait, like a lion ready to pounce on a trade. We cannot rush the markets. We want to avoid trading in a sideways market - always.
I’ll be checking back in with my graphs tomorrow (it’s usually just 1-2 times per day).
Still holding out for some good entries. I wanted to share something in the meantime. I’m looking back over all my charts, and I’m noticing that for some of the pairs I’ve already traded, I need to ride the trend longer.
An example is the USD/CHF. I ended the trade with a small profit. Had I trusted the signal and stayed in the trade longer, I’d have made more money.
Therefore, I’d recommend trusting the signal and not exiting the trade prematurely. A good take profit level seems to be between 50-100 pips minimum.
New trades (although signal is not super strong and just starting):
SELL - eur/cad - @ 1.36870
BUY - eur/chf - @ 1.23064
P.S. I tried to place on other trade via another system (known as “ozfx”). The system is not good. The signal might be valid, but it’s way too early. For instance, I had sold eur/cad long ago based on the “ozfx” system even though the lines never crossed on the daily crossover system. Bottom line: that trade is still negative. Eventually I ended up selling (just now) eur/cad, but I should have waited. The daily crossover provides a much better signal, and I will not be tempted to try any other systems.
I stumbled accross this thread last night and really like the look of it, I’ve begun some testing on a demo using 8 pairs. I think i’m gonna try the original settings of 1 and 4 and see how things workout. Will keep my results posted and if I can go for a month with some profits I’ll start on a live account.
The system holds up well. I just made profits on two of my trades. By following the rules of the system with a 5/10 moving average, I’ve had all winning trades since I restarted.
The 1 and 4 moving averages are good to catch even more pips, but the cost is a little less confidence in the signal (more fakeouts).
I’ve got several open trades, some in profit and some not, I think I might be entering a bit too soon as the cross then un-crosses, but I guess I’ll learn more with experience.
I have just added SHI Channel True indicator, which I think will help to show reversal points and also if the MACD is near the top or bottom of the window it has more chance of reversal.
If you notice, on the chart you attached, the two moving averages are oscillating close to each other. It is not so much a cross as the two lines sort of converging and staying on top of each other.
This, to me, indicates a ranging vs. trending market. I’ve been avoiding trades lately due to this. For instance, with EUR/USD, if you switch to 5/10 moving average values, you can see that a potential trade is setting up in the next day or two. So yes, I think you entered a bit too early and I’d advise against trading when the market is not in a strong trend.
I’d recommend switching to higher moving average values, as well. Just my preference, but the signals are a bit stronger.
If I do take a trade soon, I’ll be sure to post more pictures. Hopefully the market will start trending again.
If you don’t mind, would you tell us what is the current or latest setting of your system as of now that you are using? eg is your EMA 1&4, 2&8 or 5&10. what are the indicators you are using?
with all the suggestions through the posts lately, i am currently trying to find the best combinations of indicators. =)
2 simple moving averages: values 5 and 10. Both applied to “close” price. I like the idea of slightly stronger moving averages even though 1 and 4 can be good (they are just a little too prone to fake-outs).
Anyways, I have a 100% win rate right now but limited number of trades due to the market behavior.
