Good morning everyone (well it’s a ‘better’ morning for a change),
Good morning Akram and ‘Robby’ (that’s cute)!!!
Yeh listen folks - I ‘gotta’ tell ya’ - these EMA’s also seem to be doing ‘the trick’ for me.
I tell you what I’ve noticed now - something very interesting I think.
Now that I’m back on the 4 hour charts and adjusting stops every 4 hours (according to the value of the 50 EMA) what’s happening is that my stop is getting moved ‘dynamically’. In other words: once in a trade you set your stop loss at 07h00 (for example) to let’s say 100 (for example). Let’s say the trade goes in you favour for the next 4 hours. At 11h00 you change your stop loss to whatever the value of the 50 EMA is. So for example at 11h00 your stop would be set to 90 (I’m assuming a short trade here in this example). But now let’s say that in the next 4 hours the trade goes against you to a degree. Now your stop loss would have moved back slightly from where it was before i.e. at 15h00 you stop loss may now be 94 (for example). Interesting???
It’s for the reason above that the 50 EMA keeps you in a trade for an extended period of time. In other words: something ‘drastic’ has to happen during each period for you to get stopped out. Interesting???
Akram, I also saw that move on NZD this morning (last night). Funny enough it just goes to prove my point above i.e. the 50 EMA was not hit and the trade is still valid (well on EUR/NZD anyway). Of course as ‘luck’ would have it, because I entered that trade very late, I figured I did not want to lose too much if it went against me so on this particular occasion I set my stop loss to the value of Parabolic SAR and not the 50 EMA (the value of the 50 EMA was very far from the current price when I opened the position and because I’d entered the trade very late I did not have a ‘profit cushion’ to play with so I decided to act with ‘prudence’ which was a big mistake). Anyway, needless to say, the postion was stopped out at a loss (Parabolic SAR) but the 50 EMA was not touched so I’d now have been showing a nice little profit on the position instead of losing money (I’ve reopened the position and put the stop at the 50 EMA but it’s still a very late entry).
I’m not sure who is using which system now. Is anybody still using Parabolic SAR and if so how and for what? Just curious because with this 50 EMA ‘thingy’ of mine I can’t see the merit of using anything else (not even the 8 and 21 EMA’s although these do get you into the trade much earlier which IS in fact what I did yesterday but I could just as well have traded ONLY to 50 EMA and I’d be in the same position).
Oh - and if you REALLY want to see ‘action’ - I traded the Nasdaq 100 (futures) last night on the 1 minute charts. MAN it moves!!!
Anyway - I’ve attached (another) chat demonstrating where I’m trying to go with this.
The 50 EMA ‘only’ one is interesting (and very nice and clean and easy to look at I might add). Actually - for this ‘system’ work 100% you really should NOT trade with stops i.e. instead of stops you should have a stop order in place to close the current position and then open a new one in the opposite direction. In other words you buy or sell the moment the 50 EMA is crossed. The only problem with this is that you have to be very ‘sharp’ because as soon as these ‘stop adn reverse orders’ are hit then you have to place more ‘stop and reverse orders’ again in the opposite direction in case the trade moves against you again.
Oh - and I attached my ‘monumental fu*kup’ from last night i.e. EUR/NZD also to demostrate the ‘merit’ of the 50 EMA.
Soon I will be raking in the dough! :rolleyes: Well, maybe.
