Here is a system I have been testing since the beginning of the month. I am 3000+ pips and still running strong. I like this system because you only need to trade once a day (I trade w/IBFX so @ 00:00GMT). I trade most of the pairs (all majors & crosses) offered through them. Here are the details.
Indicators:
ADR calculator (use previous 5 day or 10 day - your choice)
50 EMA set to close
5 EMA set to close
Long - 5 EMA > 50 EMA & the daily candle closes > 5 EMA
Short - 5 EMA < 50 EMA & the daily candle closes < 5 EMA
T/P & S/L are based on ADR calculator - either the 5 or 10 day - R/R = 1:1
Here’s a pic of my setup and account statement. Did I mention that I like only having to look at this once a day? I takes literally 2-3 minutes to put on all the trades.
Any ideas for a good MM approach for multiple pairs? I was thinking about using fixed ratio.
Equity + (# of contracts X delta) = next contract level
Example:
$10000 + (1 X $5000) = $15000 to increase to 2 contracts
$15000 + (2 x $5000) = $25000 to increase to 3 contracts
$25000 + (3 x $5000) = $40000 to increase to 4 contracts
If the account were to drop below the minimum for each required level then our contract size would reduce by 1.
I understand most of it regarding 5 & 50 EMA at close, but just a couple of questions I have.
When do you enter the trade? Straight after the new Daily candle is formed? What time does your new daily candle form? I am with FXDD and need to check this out unless you know.
Secondly, can I have an example of the S/L and T/P. I don’t understand what you mean by take the 5 or 10 day-RR = 1:1???
My new daily candle starts @ 00:00 GMT. That is time I trade. I look at the previous candle close for the signal.
The ADR calculator will provide pip values based on X number of days. I am using the previous 10 days for both my T/P & S/L. So if this value is 150 pips, then that is what I use for the T/P & S/L from my entry.
Looking at your screen shot and assuming the arrows are your entries/exits (correct me if I am wrong), you are taking longs when the 5ema is below the 50ema. According to your rules shouldn’t you only be taking shorts until the 5ema goes above the 50ema?
That is an EMA crossover indicator. It is not needed. I use it only as a visual aid. Signals are not based on it. Good observation though on the chart.
Just to be clear, as the market stands today with the USD/JPY (for example) the 5ema is well under the 50ema. On 10/21 the candle closed below the 5ema. So on 10/22 you would go short at the open, setting you stop and profit targets the proper distance away and let it go correct? In effect you are looking for another down day in this instance. Yesterday and today (if the trend continues) will also be down days. Are you still holding your original position from 10/22? If not, would you enter short again tonight because we will have another close below the 5ema?
You only trade 1 position per pair when a signal is given until either the T/P or S/L is hit. Once it’s hit for that pair, then you can look for the next setup. What you wrote above is correct.
I takes literally 2-3 minutes to put on all the trades.
