Hi guys,
im planning on logging my trades into this thread.
i’ll be predominately using 3 different systems.
[B]FX-ED Technique[/B]
Use this technique when the trend is both strong and persistent. Begin by identifying the trend. Use four moving averages, 10, 20, 50, and 200. The first should be above the next and so on, forming the “proper order” as I have discussed before. For a downtrend, the 200 should be above the 50, and so on.
Once the trend is in the proper order, and let’s assume an uptrend here, look for the exchange rate to be above the 10 day exponential moving average (EMA) for at least 10 bars (candles) and then buy. For a downtrend, the rate should be below the 10 day EMA for at least 10 candles. Use this filter to gauge the commitment of the big boys – the institutions. If they are buying in an uptrend, the exchange rate will remain above the 10 day EMA and that is the type of trend you want to trade (it is the entry signal). If the rate cycles above and below the EMA, then the smart money is teasing you so avoid trading.
Ponsi discusses the reasons for such a strong trend and it relates to interest rate changes for the pair. One rate rises and the other falls or remains steady, giving players an incentive to buy on the widening interest rate differential.
Use a volatility stop based on the average true range (ATR) to protect your position. Since this trade technique is based on the exchange rate remaining above the 10-day EMA (for uptrends), he places a stop below the EMA equivalent to half the daily ATR, trailing the stop, and never lowering it. He writes, “Since we are trading within an uptrend, we will not lower the stop under any circumstances. We will keep the stop beneath the 10-day EMA, at an amount equal to 50 percent of the daily ATR, until the exchange rate finally breaks down and reaches our stop.”
[B]The Turtle System[/B]
[B]Trend Runner System [/B]
Would it be stupid to use 3 systems is probably the first question to ask…
Thanks