New guy here. I’m working on a system and wanted to get some thoughts. It’s simple and back tested well for me.
Rules for entry:
- 5 EMA crosses the 13 EMA on 4 hr chart
- RSI approaching overbought or oversold on the [B]daily[/B] chart.
- Stop 50 Pips
- Limit 200 or more
- Use shorter term systems to add 1/2 positions to winning trades (Turtle rules). Adjust stops to risk tolerance after adding to positions.
- At least three to five bullish candles on the daily chart followed by a reversal indicator in the candle patterns i.e. Donji, tweezers, or spinning top. Trade signal should come within the next 24 hrs.
- Look for Divergence on the daily or 4hr chart
- Three or five count move complete (Elliott wave)
Consider using the 00s and 50s to fade your entries for a better price. Avoid entering trades prior to NFP report, wait 24hrs after the report and reevaluate.
My charting software will only load 5000 candles so I was only able to test 24 trades. The filters seem to be the key finding a trend reversal. If you back test this look at the days listed below and compare the signal to the filters:
You will only find a few trades a month but the risk reward is worth the wait. Hope this helps some of us home gammers out there with fulltime jobs.
Looking forward to any comments or suggestions.