My too good to be true system : TGTBT

Trading Systems Free Forex Trading Systems
1

Actually the main reason I’m posting this is to urge u Forex men to help me find flows in this system cause when I back tested it, it looked too good, I dont know,
Maybe I am an idiot who dont know how to back test !? so feel free to let me know if I am still a noob, or did I stumble upon a leprechaun at the end of a rainbow ( fitting joke given the Irish crisis :smiley: ) , ok I’ll stop now…

The TGTBT system :

Pairs : EUR/JPY, EUR/CHF, EUR/CAD, AUD/JPY
(lame pairs huh, but they have less volatility making the risk of the trade so low, also I didnt back test it on USD pairs yet)

Time frames :
4 hours for entry and exit signals,
1 hour for best possible entry
Daily for trend detecting and resistance and support setting.

Main tools :
EMA 5 to close,
EMA 10 to close
Stochastic 14,3,3 with levels at 80 and 20
RSI 14 with level 50
ADX 14 with level 25

Additional tools : just for extra confirmation and pair status
EMA 50 to close
MACD 12,26,9

Entry Signal :
The 2nd 4 hour candle just after the following happens in the previous one :
1- EMA 5 crosses EMA 10 in the direction of the trade (full cross, not just touching each other)
2- Stochastic going in direction of trade, neither above 80 in long nor below 20 in short.
3- RSI above 50 in long, below in short.
4- ADX above 25, to get good results and long moves.

Additional confirmation signals :
1- MACD moving in direction of trade.
2- Trade is in the direction of the trend or just from the roof or bottom of a channel for better results.
3- I use the 1 hour chart with same settings to give me the best possible position of entry, so the trade wont move against u too much before it moves ur way, this will freak u out and u may exit prematurely :D.

Stop loss :
15-20 pips below or above the previous 3 or 4 4hour candles,
below or above resistance/support.

Exit :
Take profit at 150 - 200 pip or as long as it goes
next possible resistance/support
When EMA crosses against my trade

So, waiting for Feedback :wink: is this system already done before ??

2

I repeat, if someone finds this system to be lame, full of flows, or unpractical in anyway, please let me know,
on the other hand, if it’s good, well, uh…please let me know as well
Thnx a mill.

3

Pratically any indicator or ma cross system is going to give you profit in certain conditions and loss in other conditions. In the end I don’t know any traders that have profited consistantly with this sort of “average it out with indies and go with the flow” approach.

The fact that babypips school suggests you make your own system based on these price averaging type indicators is absurd. (don’t ban me! lol). I just came up with this square thing to put under my car to make it roll down the street, and ideas on how to improve? lol …you get the idea.

The markets are dynamic, there are many factors that drive it and conditions that are created. My 2 cents, after trading 7 years now, is drop the indicators all together, trade profitably from s/r and price action/ volume, then consider adding indies and keep them in their place, as a price averging/momentum tool, not for taking trades.

4

Well, I did mention in this system, that on daily chart I’ll set up possible resistances and support and that my entry on 4hour would be right off a S/R

I also check news regularly, :smiley:

Maybe I havent explained my self well,

What I am seeing here, after I examined these pairs on 4hour,
is that after the price moves from from a S/R, and makes the entry signals I set, there is almost always a move of at least 60-100 pips in the direction of the trade, before any other change in direction follows,
and if no change happens, sometimes it reaches 400 pips in few days,

See, Maybe there is no disagreement here, these averages and indies are confirmatory, BUT !!! for me they are the confirmatory to enter signals, if a change in direction happens, and then it produces those signals, I’ll definitely jump in,

Also, I did mention a trailing of about 55 pips to 75 depending on whether ur in direction of trend or against it, the worst possible thing is to gain 5 pips,

also, I noticed that the MA will cross against u before the market MOVES a HUMONGOUS amount of pips against ur trade, so its a good exit signal…

and again, please correct me if I was wrong :slight_smile: many thanks for ur reply