Hello guys out there, I’ve just maked my first trading system! I took inspiration from several trading systems that I’ve found here and on other resources, but I’ve finally put all the ingredients toghether and created something unique. I called it “Leonida Trading System” (for the moment v1.0) and maked also a VT Trader script (attached to this thread) to forward-test it (put the file into the #\VTTrader\TradingSystem folder). I’m a forex newbie, since I have only two years of studies behind me, and in this time I’ve gained something like 10 dollars, but I consider it a great success, since I never closed my little account. However, I need your help! This is the reason I created this thread, hoping you will find my errors and help me to grow as a forex trader.
And now, let’s talk about Leonida.
How it works
Leonida uses three different indicators: Parabolic SAR, MACD and two exponential Moving Averages.
When you should open a LONG position.
- First of all, SAR should be under the bars, I mean that the price should be greater than the value of the dot (graphically you will see the dots under the candles);
- second, the faster line of the MACD should cross the slower one from below or be greater than it;
- third, but not less important, the faster MA should be greater than the slow one (like seen with the MACD in the previous point).
Of course the SHORT position will be the opposite.
I’m still having some doubts setting the EXIT points, however for the moment you will exit a trade when one of the three condition (relatively to your position) is false; for example if you are buying EUR and the fast MA crosses the slow MA from above, then you will close your position.
STOP LOSSES are not defined into the script, I’m not sure if I should leave this opportunity to the script itself or introduce a rule (for example, like in the Cowabunga system, that the stop loss is the value of the nearest price peak, high or low depending of the situation).
For those of you who can read the VT Trader scripting language (it’s very simple and intuitive if you are confortable with programming languages) the system is described in detail into the attached file.
Setting the indicators
- For the parabolic SAR, the settings are those “by default” on most trading interfaces:
Step = 0,0200
Maximum = 0,2000
- The settings of the MACD (exponential) are something different from the usual ones, because I’ve found (by experience) that in this whay MACD predict “faster” the trends:
Short Period = 8,0000
Long Period = 17,0000
Signal = 9,0000
- The MA (exponential) settings are those of the Cowabunga system:
Slow MA = 10
Fast MA = 5
The period in which I trade is 15 MINUTES. I don’t know exactly how, but it seems it will be useful in the future to implement a rule that consider also the 4H period, to see the “main picture”.
This script is NOT backtested, I made only some days of trading with a demo account and it gave me a lot of pips (100 only this afternoon trading EUR/USD, GPB/USD and USD/JPY toghether). It’s obvious that the real life is different.
I only provided two images to this thread, sorry but I had not time to copy and paste screenshots into Photoshop. However, if you use the VTTrader script, you can get a better view of the system than a few images, so… nice trading!
LeonidaTSv10.zip (2.32 KB)