I have learned a great deal from Babypips, since I started trading about 1 and half years ago. I realized just now at quarter past midnight that I had not contributed a single system or educational post. Let me introduce myself: My name is Martin Dudaniec, I am a trader from Poland. I am a diehard technical trader, and I trade daily candles. I am very happy with my progress and success so far in Forex, so all you newbies keep your chins up and hang in there. I�ve demolished two live trading accounts and countless demo accounts, but I have finally found a formula for personal success. I will not be posting the system I use to enter the daily candle trades for now because it�s quite complicated with multiple levels of entries, exits, and would take me like, 4 hours to write here.
This is an extremely simple system which I have found useful experimenting with intra-day trading. I cooked this up on short notice just playing around with numbers and it seems to work well. I do not trade this live as of yet, but I am planning on refining it to higher standards and beginning day trading.
I am open to any suggestions you may have!
Set � Up:
30 Minute Candle Charts (GBP / USD , EUR/USD)
EMA 5 Applied to Close (red)
EMA 10 Applied to Open (aqua)
MACD Setting 8, 20, 9
RSI � 14
Entry Rules:
Long:
MACD Crosses negative to positive, RSI above 50
MACD is positive, 5 EMA re-crosses 10 EMA in positive direction
Short:
MACD Crosses positive to negative, RSI below 50
MACD is negative, 5 EMA re-crosses 10 EMA in negative direction
Exit Rules:
For Entries �1� , exit when the EMA�s re-cross each other in opposite direction
For Entries �2�, there is a profit taking level of 25 pips.
Money Management:
For Entries �1�, S/L = 30 pips. Manually Trailing stop of 30 pips is recommended. This will create more break-even trades but you will lose less money, and is the safer way to trade. For entries “2” Profit taking is 25 pips.
Risk no more than 5% of account each trade.
Has been tested on GBP / USD and EUR / USD
Many thanks Martin, I will set up a demo acct and try it. I have come to the conclusion that for trading the N.Y. sessions the EUR/USD & GBP/USD are the best (for me that means safest).
Has not been tested on higher timeframes. For 4 hour and dailies i would use something else, personally.
The numbers with the MACD are a result of me expirimenting with inputs…or “maximizing” the system for the given situation. This is why i would not reccomend higher timeframes as of yet, but this week im planning on trying it on different pairs.
I have been using this for most of the week and have had success WHEN I folow the rules. Still tend to get out too early but I have to rebuild the margin acct and this strategy is doing that. Nothing real big but plenty of opportunities to find trades. I added the Eur/Gbp, slower moving but works well too, just need to use smaller TP & SL.
Thanks for posting the method. I’d like to take a closer look too on demo, but before i do, please could you share what performance characteristics your testing revealed…win rate, average winner, average loser, max consecutive drawdown etc?
I have had on my platform the $/Chf from another strategy and this morning I decided to try it as the indicators were lining up. At 09:30 CDT I sold @ 1.0484 and closed @ 1.0474, +10p. At 09:57 I sold @1.0469 and closed @1.0449, +20p. +30 pips total. The reason I closed the 1st order is that my acct is down 22% and I am rebuilding so I grab positive pips when the trade shows signs of slowing. With Oanda’s tight spreads I would rather exit and reenter than miss pips - at least until the acct is rebuilt. I also have Eur/Gbp and grabbed +5p on it. I believe if one waits for all 3 indicators to line up the same way then any pr can be traded although I’m sticking to just the 4 for now. And it is the only strategy I’m live trading. Many thanks polishpip. d.
Hello everyone, thanks for the kind words. I have been on trading hiatus for the last little while, as my laptop went insane and actually set itself on fire.
Anyways its always good to hear that my method is working. Leep in kind this ismy first attempt at an intraday system and is by no means refined.
Hey im finally back to trading, got my new laptop and my first trading session i used this system.
Short Story short, in 40 mins i was up over 120 pips!
Yes, most definitely. This strat. and NY are the only way I trade live now. Looking at some others too but this is rebuilding my margin acct nicely. d.
Marcin: I see you traded the chf and yen, was this the 1st time you traded those two in addition to the originals? I added the Eur/Gbp, a plodder but makes nice moves within the stratgy’s parameters. d.
You also shared a simple strategy in the My Swing Trading strategy thread, I made the charts for that one & it looks pretty good, I will start demo-ing it tomorrow. Is this one older or newer than the other one? And can you just add the macd from this one to the other one to make it even more accurate??
