Looking for help with this system. In testing, opinions, better stop loss and take profit ideas to lock in profits.
100ema, 50 EMA
Can only trade when a candle closes above both of these EMA’s.
Also the RSI with a setting of 5 (close) must be above 50 for a buy and below for a sell.
Once you get a closed candle above the 50ema and rsi is above 50 place a buy stop 2 pips above the candles close.
If the next candle does not open then the buy stop is cancelled and wait for another candle, I’m not sure wether the rsi must go back below and above again at the moment if it’s above 50 you can buy the next candle.
I also used a stop loss and take profit of a 5 ema so once price falls on or below the 5ema cancel the trade (candle must finish) so this should cancel all losing trades quickly and keep the winners a bit longer.
I’ve back tested this on pairs and this seems to be successful! I tried last week on a demo and it didn’t seem to go as well but need to be patient especially as this was on the daily and might not get a good winning run for a month so it’s hard to test. although I believe more profit can be made as last week I opened trades which all went into profit then moved below a few days later and then closed at the 5ema so maybe to move up to break even or have a specific pip target in mind may be useful??
Have only tried this on daily but don’t see why it won’t work on other timeframes.
Also this will work much better with a strong trend so maybe an indicator that determines this will help? Also maybe set rules for what candles I take? Just ideas…m
Would really appreciate some feedback, help, advice, thoughts?
It’s all about learning and growing right?
Feel free to give me a message.