Ok ladies and gentlemen, boys and girls, here it is, my very final system!!! (I suppose I’ll regret those words sometime in the future although the main reason I’m posting this here is so that YOU can keep ME on track and make sure that I follow MY system NO MATTER WHAT)!!!
I have done nothing other than ‘fuk around’ for the past couple of weeks. I have ‘played’ with this indicator and that EMA and this SMA and that timeframe (you get the picture) and it’s all pretty much turned to 'sht’ and I am now ‘down to the wire’ capital wise so I have to stop all of this messing around and make sure that whatever I trade is a winner and, from what I can see, there really is only one way to make decent, consistent, and very real profits and this is it!!!
[B]‘Da Final System’:[/B]
[B]Setup:[/B]
Daily timeframe
50 EMA applied to close
Parabolic SAR
[B]Initial Entry:[/B]
Long when the price CLOSES above the 50 EMA or when getting a signal from Parabolic SAR to go long AND the price is CLOSING above the 50 EMA.
Short when the price CLOSES below the 50 EMA or when getting a signal from Parabolic SAR to go short AND the price is CLOSING below the 50 EMA.
[B]Late Entry:[/B]
Late entries are only taken if the price is the same or better as the price would have been at initial entry as detailed above or if there has been a retractment to the 50 EMA.
An entry based on Parabolic SAR is never the initial trend entry i.e. the closing above or below the 50 EMA is the signal for a potential trend reversal and no entry is taken based on Parabolic SAR if the the Parabolic SAR entry is the first entry into the trend.
[B]Exit (Stop and Reverse):[/B]
When the price CLOSES below the 50 EMA if long if you have not already been stopped out by Parabolic SAR if long.
When the price CLOSES above the 50 EMA if short if you have not already been stopped out by Parabolic SAR if short.
[B]Stop losses:[/B]
Stop losses are set based on the value of Parabolic SAR in accordance with the following:
Stop losses are only set based on the value of Parabolic SAR when the value of Parabolic SAR is above the 50 EMA if long.
Stop losses are only set based on the value of Parabolic SAR when the value of Parabolic SAR is below the 50 EMA if short.
[B]Additional notes:[/B]
You do not stop and reverse on a Parabolic SAR signal to do so.
If the price is CLOSING above the 50 EMA you would only be taking additional Parabolic SAR entries to go long i.e. if Parabolic SAR gives a signal to stop and reverse and go short but the price is still CLOSING above the 50 EMA then the signal is ignored.
If the price is CLOSING below the 50 EMA you would only be taking additional Parabolic SAR entries to go short i.e. if Parabolic SAR gives a signal to stop and reverse and go long but the price is still CLOSING below the 50 EMA then the signal is ignored.
[I](I will try this system on the shorter timeframes but the daily timeframe will take priority i.e. any positions opened on the daily timeframe will be left to run their course and the pairs associated with these positions will not be traded on a shorter timeframe).[/I]
[B]Further observation:[/B]
With this system you will miss a few trades (a few good trades if the truth be told) but the object of the exercise here is to ensure that if a trade does not go in your favour your loss is kept to an absolute minimum (most times breakeven less the spread) and if the trade does go in your favour the profits are maximised. I would be happy to miss a trade where the profit would have been 500 pips if I had already made 2000 pips on the previous trades. [I](Remember that missing a trade does not result in drawdown)[/I].
That my good friends is it!!! Nothing more, nothing less!!!
[B]Help me to help myself!!![/B]
And even though I’m making some money, it’s only demo for now. I plan to go live early next year. Until then, I figure the more practice I get, the better.
