Fractals for exit?
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I haven’t tried it, but what I am using to great success is closing when a candle closes on the wrong side of the 6 EMA. In my opinion, this is the best signal for closing the trade. I have used fractals on other strategies with minor success.
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Eur/Usd has provided fantastic signals so far today. I am finding most days there should be 50 to 100 pips available to be made from 8:00 a.m. to noon at GMT -5 time zone. Note in my previous post that the London open seems to be another very, very excellent opportunity to enter.
Having designed the strategy and finding that I can make money every single day with it, I hope anyone reading this thread will consider it my gift. No more losing. No more waiting hour after hour after hour find out if there will be a big loss or a break even or a win. Let’s make 2023 the year our lives changed for the better.
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Hi
Been trying this since it was posted all good so far
Thanks
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How did you set up your EMA values, I chose the EMA indicator on TradingView but I didn’t see the input /style options
I use MT4, but all EMA indicators should have settings that can be changed manually.
Select “Period” to change Green EMAs to “32” or “31”. Select MA Method to choose “Exponential”. Select “Apply to” to choose either 'High", “Low”, or “Close”.
What I have found with Fractals tho is that they are 2 bars late.
-5?? Are you in the EST zone?.. I am all the way into the snow covered NE Ohio Area.
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I have to say I’m pretty skeptical of an MA crossover strategy. In any case, I can code this for you. I find that coding someone else’s strat helps me understand it really well, because I have to tell the computer exactly what to do. I’ve started with what I think I understand but there’s a lot of room for interpretation.
Fast (white) line crosses both green lines… what exactly does that mean? What is the nature you are after? It has to cross both within a certain time frame? The slow line crossing the upper and lower range lines seems like a recipe for disaster, getting chopped up when ranging.
Once an entry point is chosen, where do you put your stop loss? Do you have some R target in mind? 1:1?
At present I’ve got this in a strategy trading EURUSD in first half of NY session, it took 23 trades over 7 weeks. It won 47% of the trades using a “2 recent candles” range for stop loss placement. I use a volume MA and a candle direction for additional confirmation. Total return was 2% (1:1R target, which is good for measuring win rate).
Oh, waitaminute. If I use a 2-candle entry with minimum 1ATR SL, and turn off the candle direction, I snipe at 1R, 2R and 3R, I get 39 trades, 62% win rate, 21% return. This does seem to be worth additional exploration.
(“Snipe” means if the candle closes above e.g., 1R, I move the SL to 1R.)
/Daryl
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I appreciate your looking into it. I have a hard time trusting in any automatic system because I do make in-trade adjustments frequently, such as tightening my SL and locking in profit while letting it run, but I’d love to see what you come up with. I welcome your experience and insights.
Sounds like there are several nuances to consider for programming it. I hope you are successful because I have yet to lose a trade doing this. That’s only 13 in a row, but still, if the programming is only giving you a 62% win rate, there is more tweaking to be done and I am not sure how I can be of assistance.
Since its scalping, I am recommending using this strategy during higher volume periods. So ranging is not an issue for my manual trading. As you can see by the screenshots, every day the charts shows 3 or more strong enough trends to make 50 -100 pips in just a few hours.
I’ve also incorporated the Level 2 indicator that displays the Bid and Ask numbers that have predictive qualities for the next candle direction (upper left hand corner of chart). Bids number higher than Ask number indicates more buyers. Opposite means more sellers.
As for the length of time to use for the fast ema crossing the slow 2 emas, It takes an average of 2 to 3 candles, so to be considered a good signal, perhaps we should go with max 3?
Also, there is no set profit target. The trade stays open as long as price is over the fast EMA on long trades and under it on shorts. I suppose we could say if price closes above or below the desired profit direction rather than a partial or entire candle?
The SL is also going to be a difficult programming issue too. I don’t know how it can be automated beyond maybe a set number of pips below the lower green ema on longs and opposite on shorts. Then trailing to opposite side green ema to lock in profit, perhaps after price moves X number of pips into profit? The more I think about that the more difficult it sounds.
If you are able to make this work, I think there are people on the thread that would love to see your product.
Yes, up in Michigan
Looks like a nice strategy. I will definitely give it a go and also try to code it in MQL4. Can you please let me know where do you place the initial stop loss?
Well. if the signal is the Yellow 14 ema crossing up over the lower Green 32 ema, I would place it below the lower green 32 ema. Because price tends to stay above it, I’m willing to take a small loss if the SL is hit. Then enter again after it goes back over the lower green ema and rake in the profits. We would need to test adding another 5 or 10 pips to see the win percentage. Obviously the same with the 14 ema crossing below the upper green ema.
If our signal is the White 6 ema crossing both greens, it looks like we can have a tight SL just below the upper green on a long trade and just over the bottom green on a short trade.
That is my thought based on just looking over the charts.
I will be greatly impressed if this strategy can be coded. But since I want to be retired in the next 3 years and just trade a couple of hours a day, I hope it can be. I have closed so many trades early just because its inconvenient to leave scalping trades open when I arrive at a work appointment, which I do several times a day.
Thanks for the quick response. I am just about to start coding the strategy, can you please let me know what is the best timeframe to test this strategy on?
Timeframe is 5M
I am Bony, forex trader freshman. Thanks for your strategy. Does this strategy work only on EUR/USD
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I strongly recommend Eur/Usd only and 5 minute charts only.