Hi Everyone,
My name is Bill.I have been reading babypips off and on for about a year and a half. I have learned alot from various people on here. The strategy I will post here is very simple,nothing new.I’m sure it is posted somewhere else on the web,so if it is a copy then all credit goes to the original poster.It is very basic,always open for ideas for improvement. I have not used this on live accounts but it looks promising from a backtest point of view.
Chart:Any,eur/usd preferred
Time: Anything 15m and above,user preference
Indicator: 5wma,(weighted moving average)
Buy: when price crosses from below and closes above ma,set entry order for 3-5 pips above closing candle's high.set initial stop loss 2-3 pips below the low of the lowest of the 3 candles to the left of signal candle.set profit limit according to time frame you are trading on.ie.-15m frame you might shoot for 5-10 pips.daily frame might be for 30-50 pips.it's user's preference.a lot of times this is the beginning of a small intraday trend,so using multiple lots and manual trailing stops would be beneficial if you choose to ride out the trend.
Short:Simply the opposite of the above.
Again, I know this is very basic and simple,but someone might be able to get use of it.thanks for reading. Bill
ps.I don’t have a nifty quote yet,but I’m working on it.ha,ha.
I will demo this; anyone have a suggested TF? One would assume that the longer the better but I’m open to suggestions. d
Edit: I very much like the use of a limit style order, make the price go your way 1st before entering. Sure, a few missed early pips but a much safer entry. My 2 cts.
Dobro,
It really depends on your style of trading and how many pips you are trying to make.15m-30m tf’s are good for scalping if you have time to monitor the trade,especially when prices are ranging.1hr and above would mean more pips and less tiime at the pc.what i would like to find is some type of confirmation based on price movement,ie.candle pattern formation or single candle type.no inidicators.if you look at any pair and any time frame you will see that every so often your entry order will open by 1-2 pips and then reverse.i am looking for some information that will indicate this possibility ahead of tiime.maybe some of the more experienced traders here can give some insight.
to pipnailer; i haven’t learned how to attach thumbs here yet but am working on it.will post something soon.thanks. Bill
I did a bit of backtesting on this, and while it tended to win more trades than it lost, due to the number of trades being stopped out, and the profits usually being less than the stop amount, you end up either breaking even or slightly above (like 5-10 pips).
I reckon another indicator is needed to get rid of some more of the bad trades, but what I’ve tried so far doesn’t seem to help (RSI, Stochastics, 10WMA crossover).
I agree with you Afro88.That’s why I am looking for some type of confirmation indicator or maybe a filter of some sort to some how decrease the amount of risk w/o the risk of being stopped out as often.One suggestion to the strategy would be to open 2 trades of equal lot size,set 1 for 5-20 pips.When the t/p triggers for the first lot,move initial s/l to break even and let the other lot run or maybe set it for something like 50-75 pips.The eur/jpy looks good for this method.Rsi,stochs,macd,all are lagging.trying to find something that is price action based.Still waiting on suggestions from some of the veteran traders here.Thanks.Bill
