Simple GBP/USD 4hr Chart System

Hello all,

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:

  1. 5 EMA crosses the 13 EMA on 4 hr chart
  2. RSI approaching overbought or oversold on the [B]daily[/B] chart.
  3. Stop 50 Pips
  4. Limit 200 or more
  5. Use shorter term systems to add 1/2 positions to winning trades (Turtle rules). Adjust stops to risk tolerance after adding to positions.


  1. 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.
  2. Look for Divergence on the daily or 4hr chart
  3. 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.

Happy Trading,