[-ForexPhantom-] Daily Crossover System

Trading Systems Free Forex Trading Systems
162

i have been placing a 300pip SL i may change it to 250-175 SL with a 100TS. It seem if the trade is goin to go 200pips in wrong way it probably not going to recover. I had great success with 300pip so far and i move my SL at certain intervals so i never hit the 300 SL. Also risking less pips mean bigger trade size.

One could also put the SL a few candle back.

And a SL is all according to your MM. Everyone should manage their own SL with whatever benefits them but remember that since your trading the daily you need 100+ just my opinion

163

Could anyone tell me when is the best time to place the trade.

Is it exactly when the macd cross, even if its the tiniest bit because i seem to be placing trades when it crosses, but it then uncrosses and seems to be an invalid trade.

Also when is the best time to look at the chart, i have been looking when the new candle starts and then about 12 hours later.

Also do we look at ALL the currencies or just a few

Thanks for your help guys

Laters

164

Hello everyone,

Please can some one clarify the issue I am having, added the template to the templates directory of the mt4 and set RSI. The instruction from ForexPhanthom says to put entries if red or yellow EMA lines cross each other. But I can’t see any red or yelloe ema lines on the chart. Am I missing something?

Please look at the attached picture. Any input is much appreciated.

missing ema lines.jpg700×525 34 KB

165

I didn’t use the template but you can add the EMAs manually from the indicator list using FP’s suggested settings - found on the 1st pg I think. Hope that helps.

166

Hi there,

You are mixing the old system with the new one. Please go to the first page and use the template – it will make life easier.

The basic setup of the system is to attach 2 moving averages to the MACD which is at (4,9,5). The moving averages are 1 and 4, both linear weighted.

It’s easier to just attach the template if you would like.

Thanks,

-ForexPhantom-

167

Hi there,

You can trade at any time and you can trade all currencies. The currencies seem to “flock” together and make crosses at the same time, meaning that if one currency is crossing you can likely find another crossing.

Regarding entry, it’s really up to your risk appetite. It’s safer to wait for the candle to close after the cross, but you can place your trade at the initial cross or even at the initial touch of the moving averages (risky).

I’ve had the same problem you mention about the moving averages “uncrossing”. I’m going to start waiting for the candles to close if I can help it.

Thanks,

-ForexPhantom-

168

Hi guys,

Well, after much success with the system, I finally ran into a problem today. Nothing major, but the system is slightly incomplete.

I noticed a few things:

  1. A S/L of 75 was way too short for some of my trades. For example, on the EUR/USD I only banked around 20 pips or so, whereas if I had not hit my trailing stop, I’d be up +192 right now and counting. This is unacceptable and indicates that 75 is too tight of a S/L. From now on, I’m going to use a 100 T/S to see if that helps out.

  2. The moving average crossover works for the vast majority of trades, but not all of them. Sometimes, the currency turns against you and the moving averages [B]uncross[/B]! This means that at the time of entry, it was valid, but in retrospect, you would have never entered the trade. This is also unacceptable, but to a lesser degree because it only seems to happen occasionally. However, it [I]still happens[/I].

We have three options:

A) Wait for the candle to close to confirm the crossover.
B) Implement an initial S/L to protect you from mistakes when they uncross.
C) Do Both.

Option C seems the most prudent. For an initial S/L, 100-300 seems to be a good range. Experts advise only risking 2-3% of your account per trade. Since we are using small lot sizes, this should provide plenty of leeway. Of course, you can always make it less than 2-3% of your account if you have a large account.

I’ll keep you updated. As of right now, I have 4 trades open, 2 of which are negative. I’m in the hole because 2 of them uncrossed, while the other 2 are just now coming into profit. They may end up canceling each other out.

-ForexPhantom-

169

Hi all,

How it was going lately?
I jumped in many bad trades lately, I am still in profit overall.

Happy trading,
Marius

170

Same. Not sure what is happening. Nice crosses and price didn’t respond. Easter volitility?

171

Hi,

Probably that. Or probably starting to trust the system and jumping in too early?
I try to educate myself to wait until the signal is clear. Also I try to look at how my positions do only once a day, at the start of a new candle (which is also when I place new trades). But this is very hard, for me at least.
Phantom, how it is going for you? Any new ideas?

Happy trading,
Marius

172

Hey ForexPhantom,

I don’t think you have a problem with your approach.
I think to trade this a trader would personally want to use a trusted method that would keep them from placing trades at inopportune times.
Your ma cross is very good, (I am tempted to say it is the best x over I have seen)
JMO but use it with support/resistance levels and a person could do very well.
I am trying to come up with an alert for the ma cross but no luck so far. If anyone has one that will work on this it would be a very nice addition if it is something that can be shared here. It would make monitoring the pairs so much easier.

Looks very promising, One of those simple things that just works.

ss1.jpg700×420 32.2 KB

173

sandpipper,
I think a simple channel can be of great value here…
“Use the Force Luke”

174

if anyone is interested I did some backtesting over dates stated (probably not long enough) of this system but only placing orders on the daily candle close which is 11 cst for me here in texas, and only eurusd so far…
and holding position over the weekend. id love to just look at the charts once a day and either find a position or not

ive done two tests both with a 1:1 risk reward ratio.

first was with a 100 s/l and 100 t/p.
results: 14 trades -100 pips

second was with a 200 s/l and 200 t/p
results 14 trades plus 800 pips.

still am going to try different stops,

am i on the right track guys?? not with this particular system but just with my thinking… ive only discovered the forex 2 weeks ago… been reading all i can after work so much my brain hurts, and thats after being on my feet all day from waiting tables… yah so my feet hurt too…

peace,
sk8wyatt

175

Which channel you thinking? I have the shi and I usually pull LRC’s all the time but having said that I haven’t really used either with this system…yet.

Edit: Ok just saw your posted pic up above? Which channel is that?

176

You have covered more ground in 2 wks than I have in over 2 yrs - good work. For the time being I will use a 200-250 SL. Anxious to see more of your testing results. Thank you, d.

177

I agree. Well done sk8wyatt.

I read an approach on a different board that I think can be applicable here. It was originally posted by “Jacko” on FF. He seems to have quite alot of people who think very highly of him so many people may be familiar with him. He uses (or at least used) an approach he calls “Jacko’s Anit-Hedging Strategy.” His thought behind it is that even if you are trading correctly with the trend…pullbacks happen. I think that is part of the problem we are running into when our SLs get hit. His approach is:

Set a S/L for each trade you believe is with the trend of around 50 pips.

2 things can happen…

  1. You were correct and your S/L is not hit
  2. Your S/L is triggered

Once your S/L is triggered, wait at least an additional 50 pips and enter a limit order at exactly your original S/L. Again…2 things can happen:

  1. In our case it was a false indicator and the order is not filled
  2. It was a temporary pullback and we were correctly trading with the trend and the order is filled and we make what we lost on the original stop.

He later added that this is only done once. If the second order is filled and stopped, you wouldnt chase it again.

Here is his original post:

"[B]This strategy was invented by me as an alternative to “hedging” which was often discussed on Forums as a panacea to a losing trade.

"Hedging " to me is simply hiding a loss under another opposite trade…and sooner or later, when the hedge comes off, there is an ugly loss exposed…I don’t like that concept !!! (However, to those who use them, I say, different strokes for different folks…that is, its a personal choice).

Currently, this is what seems to happen to some Traders…

  1. you put a trade on and you put a stop loss of around 40- 50 pips
  2. the market goes against you (horrors…I was wwwwwrong !! )
  3. let the market continue…it will probably go say another 30 - 100 pips past your stop…who knows ???
  4. FINALLY, the market comes back around and starts to head in the opposite direction
  5. by now you are totally hacked off with the market and you let it go

The solution that that I found is a pretty simple one but one that has to be executed without fail…

Scenario 2

That strategy is:

  1. you put a trade on and you put a stop loss of around 40- 50 pips

  2. the market goes against you (horrors…I was wwwwwrong !! )

  3. let the market continue…it will probably go say another 30 - 100 pips past your stop…who knows ???

  4. PUT AN ORDER IN AT THE EXACT SAME FIGURE AS YOUR STOP LOSS (if you were originally “short” then place a “short” order) This ensures that when the market comes back, as it invariably does, you have a DEFINATE order in place to put you back in the market where you were originally…and you are now in the same direction as the market is moving…

  5. FINALLY, the market comes back around and starts to head in the opposite direction

  6. The market picks you back up on its new direction

  7. THE ADVANTAGES OF THIS (THEORETICAL) STRATEGY IS THAT
    a. IT HAS AN EFFECTIVE AND DISCIPLINED COURSE OF ACTION
    b. IT GIVES YOU A SPECIFIC “ENTRY” POINT
    c. IT REDUCES LARGE DRAWDOWNS
    d. IT PUTS YOU BACK IN THE MARKET EXACTLY WHERE YOU GOT OUT

I know that there are DISADVANTAGES with this strategy, buy I think that the overall effect of the advantages outweigh the disadvantages.

I also think that this strategy is more appealing to my business sense of minimising risk than the original concept of “hedging” that initially set me off to discover an alternative strategy to hedging.

I have now been using this strategy for a couple of months and it is working brilliantly.

PLEASE NOTE: I am a medium to long term trend trader. The above method works best on those time frames. It works less well on short term time frames because of the volatile “noise” in the market.

When a stop loss has been triggered, I allow it to go past my SL by a minimum of 50 pips before I set the new order.

When the market has turned and is coming down in the “trend” direction, my order is then opened.

Try it…you will be surprised how good it is.

The key advantage is that you are not tempted to “hang on” to a losing trade…and therefore your drawdowns are minimised.

However this is a “default” trade. It is NOT the prime strategy to use.
DO NOT LOSE SIGHT THAT the prime strategy is to trade medium/ long term and trade with the trend, with a trailing stop.[/B]"

I thought that this applied nicely to what we were all working on. Thoughts?

178

Its just one of the SHI-Channel_true_with_quadrant indicators from the mp thread.
But as I know you are experienced with the channels I’ll ask you which channel indicator you prefer to use?
I am simply using the channel in conjunction with the crossover. The channel just gives you a lot more depth of information and when they confirm each other I think the odds are Highly increased that the trade will go your way.
As easy as it is to scan the pairs using this there is no reason to take every setup. Cherry picking the better setups will be more than adequate. After all I am not interested in trading a lot but trading well, A few well timed trades a week will be far better than a shotgun approach imo.

ps: I tried to post the channel mql here but it kept telling me it was an invalid file…

179

Greetings,

Unfortunately, I am having the same problem a lot of you are having. I had 4 trades open and all 4 trades went south. I’m down quite a few number of pips due to not using a S/L. But, even if I had to liquidate everything, I would still be up by a 1000 pips or so.

I’m really not sure why this happened. I used valid signals to enter, but they all reversed. I guess Easter could be causing some of this, but I’m really not sure.

I was soaring high with flying colors until this recent downturn. I’ll be thinking this over.

Everybody has some really great ideas here. I’ll be commenting on them in more detail soon. As for now, keep it up!

-ForexPhantom-

180

Hi Phantom,

After trading this for a while, I come to think that trading without a S/L is a bad idea, even if the system works and you trust it. But this trust shouldn’t be blind.
For the moment, I use a 100 pips S/L. On the not so volatile pairs, it works fine, I mean if it goes the other way 100 pips, it is most likely that I was wrong and the signal was false. If the S/L gets hit, there are 2 options: go the other way, or just wait and see what happens, probably you went in on a retracement and the market will continue in the initial direction.
Unfortunately there is a risk (if not timing the entry right) to have the S/L hit, wait a little, then enter again, only to have the S/L hit again. It happened to me once… and man, that is frustrating. :slight_smile:
Or you could use a larger S/L. For example 300 pips. If it goes the other way 300 pips, it is almost sure that it won’t come back soon.

Also this week (probably because it was Easter’s week?) most of the pairs did not go anywhere, and this ranging markets is when most, if not all of the indicators generate false signals.

Happy trading,
Marius

181

The big Elephant in the room is that this is still an EMA cross system and they never do well in a sideways market. They are very good in trending markets but once the market starts going sideways you get a lot of reversals and drawdown (especially with the spread).

Given that this is a daily system these losses can be pretty big for even a small reversal.

Remember that all of these indicators are historical and the market goes where it wants when it wants, so simply watching a few EMAs cross is not the best single solution, but can be very profitable with other indicators, news, candle patterns, etc.

I traded this system in demo and had fairly decent results but I would never trade it live without additional assurances. My .02 cents.

Mike