Hi Everyone,
Wow, amazing to see this thread is still going strong and nice to read some success stories!
Just to update you all, I continued working with the strategy for a while but, ultimately, I couldn’t produce consistently good results on EUR/USD or any other price chart. I tried various tweaks but, unfortunately, all to no avail. I’m not saying the strategy isn’t profitable, perhaps it is, but I just couldn’t make it work for me.
I did make one revision that was able to produce some really good profits.
-
I scrapped the 6 EMA and kept just the 32 EMA channel and the 14 EMA.
-
I added the ATR indicator to help with placing my stop loss.
-
Buy and sell signals remained the same as with the original strategy.
-
I changed timeframes from the original 5m charts to the 1H chart in order to look for significant zones of support and resistance. After identifying any such areas I marked them out on the chart, as with the screenshot below.
-
I then switched down to the 30m charts from which I would trade. 30m charts seemed to be optimal in filtering out false signals and ensuring the moves were big enough to capture a good reward to risk ratio.
-
If a buy or sell signal occurred at or near one of the support or resistance zones I had marked out, it had a very high win rate as can be seen at a glance on the recent screenshot below.
-
I would set my stop loss at 1 x ATR from whatever the recent swing high or swing low was.
-
My take profit would then be set at a risk to reward ratio of 1:2.
Using AT’s strategy in this way on EUR/USD and some of the Yen crosses can produce really good results. In reality, you are simply trading support and resistance and using the strategy to look for entries.
If you are marking up your support and resistance zones correctly on the advised timeframe, there aren’t a great number of signals but the signals that do occur are all high probability. It’s perhaps not the only strategy you should use but it’s definitely one worth keeping in your arsenal.
I have found this thread very interesting to read through and I’ve enjoyed tweaking AT’s original strategy. As a thank you I have shared one of my own strategies which you can find here:
Good luck guys, happy trading!
