The 5min Cross

yfz450bence · April 20, 2009, 1:41pm

Hey, guys, yet another system strategy whatever you want to call it. This is a 5 min system. i made a Microsoft excel sheet on the way to trade it, so im just gonna copy and paste it here, only difference is that it isn’t colorful. Ill post up some chart examples also.

The 5 min Cross

Please install the (30)ema and (70)ema moving averages
Color the (30)ema RED, and the (70)ema BLUE
Wait for the RED ema to Cross the BLUE ema
Trade now activated, stay alert
Do NOT trade if lines have not seperated a little bit, about the height of your curser or more on metatrader
Once seperated, wait for the pullback, or pullup to the BLUE line
BUY or SELL when price hits the blue line, but price must atleast hit 38% fibbo, prefered 50%
Price should NOT go past the blue line by more than 30 pips, if it does candles MUST be normal size
Once price hits blue line and 38% or 50% fibb, u can enter once price pulls back/up to BLUE line
It is prefered that 50% fibbo is at or below the blue line, price MUST hit atleast 38% fibbo to trade
Stop is 25 pips, if risking more, please adjust lot size accordingly
Sell half at Target 1 for 30 pips, let 2nd half RIDE as long as FULL candle above or below RED line… Or sell at 50 pips This is a guideline
Profit based on 2 mini lots, stop loss = $50 Target 1 = $30 Target 2 = ?? Up to YOU!!

Method Most effective on the FIRST or SECOND pullback/pullup to the BLUE line, after that it may be more risky, but still profitable
Eventually the lines will cross the other way, price cant go up or down forever, its important to let the second half ride
The following has been a guidline, if price blows thru our 30 pip target and goes to 50 or more, consider selling everything or sell half
Backtested the most on GBD/JPY, but can work for other pairs as well
Once you have sold first half, let second half ride and put stop to breakeven on second half
Example trade: Stop loss is 50$ target 1 is 30 pips or 30$ Second half reaches 100 pips from entry, 100+30= 130$
Watch out for HUGE candle bars upon entry, if movement is too much skip the trade
O ya, lol, this is on the 5 min chart of course! And don�t risk more than 5%

yfz450bence · April 20, 2009, 1:47pm

the most recent chart example on the gbd/jpy. You can see the lines crossed at the very left of the chart, the lines seperated nicely, and then you wait for the pullback to the blue line(70)ema, then you ALSO get your fibbo out, and extend it from the top which is the 147.00 area , to the low at 145.26 area. you will see that price pulled to the blue line, and then hit the 38% level. now you may enter when price hits the blue line. its prefered that 50% is hit but 38 is ok also. this was an awesome trade, you sell first half at 30 pips, and sell second half at either 50 pips or let it ride below the RED line, as long as full candle below the 30eme red line. could have made and easy 200+ pips, remember not every trade is like this, thats why you must consider selling second half at 50pips also. in the end its your choice!

yfz450bence · April 20, 2009, 1:58pm

here is an example of where to stay out of the trade. the lines have not seperated enough to be a good trade

yfz450bence · April 20, 2009, 2:07pm

another example, here you could of played twice, the safest is first and second pullback to the blue line. this is the 17th so its pretty recent. once again lines crossed, and seperated nicely. then you draw your fibbo from about 148.78 down to 147.48, on the 5min chart, you can see that when price pull up back to the blue line it hit 38% and was just shy of hitting 50%. you would of entered at 148.00, sell half at 30 pips, sell second half at 50 or better, in this case it just sank nicely 80 pips. you could have re entered again at 147.80 area when price pulled back a second time to the blue line, once again over 50 pips possible.

yfz450bence · April 20, 2009, 2:19pm

ok here is an up play with fibbs drawn onto the chart. as you can see the red line crossed the blue, and seperated nicely. now its pulling back and getting close to the blue line, so remember price must hit atleast 38% prefered 50%. price did hit blue line and 38% at 148.80 so you could have entered there. i drew in a red horizontal stop loss of 25 pips if you entered at the 38% level. i drew in a green arrow at entry. also notice that if you waited for 50% pull back you would of been better off, BUT i noticed that the 38% level is a good play alot of the times so its worth the risk. notice it never hit the 25 pips stop loss, and went on to hit our ultimate goal of 50 pips

yfz450bence · April 20, 2009, 2:29pm

ok one more thing, this is the same chart as the last post, but i scrolled to the right a bit, so you can enter again if it hits the blue line a second time, BUT take a look at the candle upon entry, i drew an arrow directly above it, when there is tons of momentum coming down to entry just wail a bit, and if you did you would of seen a 70 pips drop from high to low on that 5min candle, i dont like huge candles that blow past our entry, its a sigh of weakness or strength depending on which way your trading, so you can buy blindly on the blew line if all conditions are met such as the 38% and 50% rule, BUT thats if momentum isnt doing something crazy.

o ya if you look to the right of this chart you can see yet another set up for a short, lines seperated nicely etc etc

yfz450bence · April 20, 2009, 2:44pm

ok, something else, this requires time. a good goal for a week is 100 pips based on 1 mini lot, for example we sell half at 30 pips, i count that as 15, and sell second half at 50, i count that as 25. so now you just made 15+25 = 40.
thats why i like basing pips/ profit with 2 mini lots, its simple.

sell 1 mini lot at 30 pips or $30, sell second mini lot at 50 pips or $50, you made 80 pips or $80 bucks minus spread. so if you play with 2 minis your goal for a week could be 200 pips or $200. if you play with one full lot, your goal would be 1000pips or $1000. of course you can make more than 100 pips a weak, but if you hit that mark then i think you succeeded for the week.

also maybe you have another method that works somewhat for you, then this can be an addition to you method, make extra pips. if this system doesnt work for you then dont use it or bash it, simply dont reply, but if you have a question then i can help with posting chart examples:) just when you never thought it was possible to trade the beast with a 25 pip stop loss, you probably think im crazy:eek:

my skype is yfz450bence, im on sometimes so maybe we can chat about some different methods or whatever;)

yfz450bence · April 20, 2009, 3:52pm

you guys probably like chart examples, so here is another, red line= stop loss,
blue line= target 1 sell half at 30, green line is sell second half at 50 pips, or more of course.

green arrow is entry at 146.64, it pulled back to atleast 38% and no huge movements

ok the second chart shows how price pulled back to the blue line and hit our first target of 30 pips, entry was 148.81, the green line show the target, then the trade went back to where we bought it, so thats why we sell half at 30 pips in case it goes against us

ok third chart, this happens often enough to make notice of it, lines crossed, seperated nice, pulled back to 50%, green arrow shows first buy price at 147.00
target 1 of 30 pips is hit at 147.30. then you would of broke even on the second half as it came back to entry, then the YELLOW arrow shows a possible RE ENTRY at 147.04, as you can see price hit our first target as well as 50 pips second target i you held on to it, you could of got a quick 150 pips on that by following the red line rule on the second half, which is as long as the full candle is above the red line hang on to it, the high and low of the candle would have to be under the red line to exit.

ok 4th chart example: last but least. this is a losing trade, lines seperated nicely, pulled back up or a nice short trade at 146.36, blue line is first target, and red line is stop loss 25 pips

yfz450bence · April 20, 2009, 4:41pm

by the way i use fxdd demo meta trader chart simply for charting only, i use mb trading as a broker, not that its important but figured someone might ask

yfz450bence · April 21, 2009, 3:08pm

i want to show you another thing to watch out for, it can be traded but is more risky. on short trades, i dont like the 50% fibb mark to be below the blue line by very much, it should be at the blue line or above it for short trades, for LONG trades the 50% fibb mark should be at the blue line or below it.
This is a short trade, take a look where the 50% mark is, its way below the blue line, so you should be aware that price may be gaining strength especially when it passes the 61% mark.

second chart shows price pulling back to the blue line, BUT look at the fibbs and where they are drawn, notice i said it MUST hit the blue line and ATLEAST the 38% mark to trade it, after it hits 38% mark you can re enter when price hits the blue line, it never came back to the blue line, and went more than 30 pips PAST the blue line, and if you read my first post, you should ignore the trade once it blow 30 pips past the blue line

third chart shows where you wait for the 38% mark, it went 28 pips below the blue line which is still acceptable, then it came back to the blue line, the thumb shows where you would enter. this one would of had a 30 pip stop

yfz450bence · April 21, 2009, 7:28pm

here is the gj currently, it hit the blue line and just hit target 1 of 30 pips, but it didnt hit 38% so this would not be a trade, but the gj is strong right now

ReaperKK · April 21, 2009, 8:58pm

Can’t wait to try this out, I’ve always been trying to trade on the noise levels like 5 minute. So I’m going to take my demo acct for a run with this.

yfz450bence · April 21, 2009, 9:05pm

i do look at larger time frames sometimes to get the big picture, right now there techncally is a short signal, the lines seperated somewhat, but i dont like the look of the 1hour chart as it seems bullish, but who knows, anyways here is the short trade currently.

UPADATE: target 1 hit for 30 pips sell half, put second half to break even
target 2= 144.09 stop loss at breakeven 144.59

UPDATE# 2 target 2 hit for 50 pips!! or if we are greedy:D let it ride below the red line, as long as the high and low of the 5 min candle is below red line its ok to hold.

jvolkova · April 21, 2009, 9:25pm

I really like your method…thanks for sharing!

yfz450bence · April 21, 2009, 11:48pm

guys this last short trade was really good if you followed the red line rule, please check out this chart so you know what i mean, 50 pips was hit, but if we hang onto it we got 100+ pips from this 5min cross. this is good enough for the week

remember you can take profit at 50 pips, but if the bigger time frame looks good, then you can use the red line strategy and make more, either way its a winning trade no matter how you look at it

gta_master1987 · April 22, 2009, 1:10pm

Hi yfz450bence,

Thanks for the providing all the details to your system! I tried using your system and got 30 pip on the first trade. Hopefully I will be able to get more pips next time!

yfz450bence · April 22, 2009, 1:30pm

the hardest part sometimes is where to draw the fibbs, im still learning myself, also you can always breakeven on the trade if it missed the target by 1 or 2 pips. if you made 100 pips just for the day you can just stop trading for the day because the next trade might be a losing one, you have to know when to stop, but im gonna show you what would of happened in full detail what would of happened if you played every trade starting from the last post i posted

ok so that last short trade hit our 30 and 50 pips target, im basing profit on 2 mini lots. im gonna add in a 5 pip spread also, so target 1 hit for 25 and target 2 hit for 50, we are up 75

chart 1 shows the next trade and it missed the target by 1 pip, ill count this as a loss of 60, 25 stop loss plus 5 pip spread is 30 times 2 because we are using 2 mini lots, total running profit is 15

chart 2 shows the next trade, the first red arrow was entry, target 1 of 30 pips was hit, so ill add 25, the second red arrow would of been a re entry, it hit 30 pips, ill add another 25, total profit is 65, the third arrow is another re entry, this one hit our stop loss, minus 60, total profit is 5.

and the 3rd chart most recent, would of been a no play, the 50% is way below the blue line, these are risky, also we played everyone since the firts cross, remember i said that the first 2 touches are the safest, so anything after you can play only if you want to risk it. you need to set your own goals for the day or for the week. totall profit was about break even so far, but you could of got more if you stopped trading

jvolkova · April 22, 2009, 1:34pm

Yes I find it difficult to draw the Fibbs also…Is there a specific time you prefer to trade using this method?

yfz450bence · April 22, 2009, 2:04pm

hi, i wish i could say what time would be best, but the trades could happen anytime, i have something for myself that gives me a text message when the lines cross, that way i dont have to sit and wait as much,

some fibs are real obvious to draw, the ones that are tricky is when its just consistently going down or up without any waves or pull ups or pullbacks, this chart is the most recent, i drew the fibbs, on there using the 5 min chart, this one is obvious, hope this helps

this trade missed the 50 pip mark by 3 pips doh! red line is 50 pips

gta_master1987 · April 22, 2009, 2:48pm

yes, i also find the fibs hard to draw. I have one question: If I want to sell, the fibs should have 0 at the top and 100 at the bottom, right? buy would be the opposite (100 on top, 0 at bottom)?

btw, made 80 pip on the second trade