The Koala System ( Newbie Friendly )

[trading801]

Hi Mr Koala.

I have been following your thread for a while and so far it is going well, just a few things I am on GMT and it seems by afternoon my time you are already at midnight so it is difficult to decide on trading times best for the system.
Secondly I am unsure when to get into trades like the position of the 3 SMAs
I think I am getting in too early or late at times. Since 1 March I am now 78 pips up though I did lose 64 on 2 trades in that time.(Was 142 pips up before loss )
If I were to get my entering & exiting trades right I would be extremely happy with it.
On your request for comments on the daily review I use 15m TF so that would be my choice.

Keep up the good work it is well appreciated a fantastic system.

Hi hi,

thanks for your kind words…

15m is too short for daily review

anyway, koala system can be use anytime but it is best during trending times!

if you are unsure if you should go in or not, a quick check will be

1. any important S&R around or 200 EMA which will potentially disrupt?
2. is the 5M showing the same signal as the 15M?

look forward to seeing u here often

[trading801]

Hi Trading801,
Hi everyone,

I am new to Forex and trying to understand the Koala system. I like the system because it suits my personality.

I need your help to setup my charts. I will give it a go on paper trading for a few months or perhaps as long as it takes to understand the system.

Here is my first question (and I am sure there will be many more to come!):

I don’t know how to get the 3,6 and 9 MA’s to be ‘Smoothed and apply to Median Price’ as Trading801 said. My charting software has Simple MA, Exponential MA and Linear Weighted MA. Which one should I use?

Looking forward to your replies. Thankyou and have a good weekend.

Learn2b

hihi welcome… remember to have patience when using koala system… hmmm your software is not MT4?

[trading801]

Hi all, find below the latest The Koala System Weekly Review from my blog posted here for your convenience!

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Hello fellow users of The Koala System.

Hope you are having a great weekend so far.

This week was a choppy one as the EUR/USD continues to range between 1.34 - 1.38. The US Non Farm Payroll at the end of the week also contributed to the volatility.

Red no trading zones plagued the week as the price action whipsaws.

The 200 EMA continued to serve it’s purpose as a warning to potential support and resistance levels.

While The Koala System is an all weather forex system, it performs best during trending situations. With the concerns over Greece and the Euro Zone triggering spiky reactions throughout the week, patience was stretched to the limit.

The Koala System did yield 3 opportunities this week. Having said so, these were not spectacular and barely reach 50 pips.

In view of the recent market conditions, lowering the take profit value to 30pips may yield better results.

Take safely and remember to practice proper money management.

Do read the latest EUR/USD Weekly Review for a heads up of the upcoming week.

[fxster]

Hi Mr Koala,

I have a few questions:

1. If TP is lowered to 30pips, how bout SL? TP:SL or 30:50 doesn’t sound like a good strategy, but 30:30 might be dangerous. ANy idea?

2. Your first black circle broke the rule as it’s near the 200EMA and the koalas wasn’t exactly diverging properly.

3. The 3rd circle does give a diverging koalas, but also within 50pips to the 200EMA, altho u say u can charge to 30pip TP, support may not be on the dot.

4. In the last red box, below, 200EMA when it was trending down, wasn’t there a good opportunity?

5. On the S/R line, maybe u can describe to us, everytime u show the red line, why was that line chose as SR?

Just asking. Thanks

[mfkfx1]

Anyone trading this system live? Thinking about testing it for at least 2-3 months. I like it that simple

Would it be ok if I start posting my results and/or questions?

Greetings

mfkfx

[fxster]

Anyone trading this system live? Thinking about testing it for at least 2-3 months. I like it that simple

Would it be ok if I start posting my results and/or questions?

Greetings

mfkfx

Well, if u have the time, please do.

[trading801]

Hi Mr Koala,

I have a few questions:

1. If TP is lowered to 30pips, how bout SL? TP:SL or 30:50 doesn’t sound like a good strategy, but 30:30 might be dangerous. ANy idea?

2. Your first black circle broke the rule as it’s near the 200EMA and the koalas wasn’t exactly diverging properly.

3. The 3rd circle does give a diverging koalas, but also within 50pips to the 200EMA, altho u say u can charge to 30pip TP, support may not be on the dot.

4. In the last red box, below, 200EMA when it was trending down, wasn’t there a good opportunity?

5. On the S/R line, maybe u can describe to us, everytime u show the red line, why was that line chose as SR?

Just asking. Thanks

Hey thanks for the qns.

1. yes. A ratio of 1:1 is barely good…
2. allow me to clarify, being near 200EMA is caution. Not a big no no.
3. as above
4. the koalas are diverging too much
5. i presume we are on the same page on this. The S/R lines from my daily review on my blog? these were chosen from past price actions. A) firstly, do you see the reaction it often has when it is near the lines? B) zoom out the time frame and you will see similar reactions.

i think to further clarify, the latest review considers the fact if you want to be a little more risk taking … sorry i wasn’t clear… i had a few users writing to me about how slow everything is etc etc they were taking excessively risk… i was worried for them and thats why i wrote the review with slightly more risk in mind… so as to give those “impatient” koalas a little more to play with and yet not too over dangerous …

thanks fxster for giving this chance to share more… together we learn more

[mfkfx1]

Did my first Koala trade today. Please see the chart attached. Settings: TP 40, SL 35. Moved SL to +1 pip when profit level 30 was reached. TP was hit approx. 2 hours later.

I took a loot at some previous MA crossings and one has to say that the MA’s angles of most winning trades was 45 degrees or more compared to the horizontal line.

Would you have taken this particular trade or weren’t the MAs not parallel enough?

Greetings

[fxster]

There was indeed a good opportunity to short yesterday. i made my full 50 pips too.
But my chart is a bit different from urs. Is urs on a 15M TF?
But i went in much earlier (about 9pm USD time) cos the koala was formed, trending below 200EMA. However the koala did not stay the same, and it ranged for almost 7-8hrs!!
Luckily i was discipline enuf to leave it alone, as i got my 200EMA to protect me.

[trading801]

There was indeed a good opportunity to short yesterday. i made my full 50 pips too.
But my chart is a bit different from urs. Is urs on a 15M TF?
But i went in much earlier (about 9pm USD time) cos the koala was formed, trending below 200EMA. However the koala did not stay the same, and it ranged for almost 7-8hrs!!
Luckily i was discipline enuf to leave it alone, as i got my 200EMA to protect me.

hi… i am glad you gain full harvest buddy hope my answers clarified for you

[trading801]

Did my first Koala trade today. Please see the chart attached. Settings: TP 40, SL 35. Moved SL to +1 pip when profit level 30 was reached. TP was hit approx. 2 hours later.

I took a loot at some previous MA crossings and one has to say that the MA’s angles of most winning trades was 45 degrees or more compared to the horizontal line.

Would you have taken this particular trade or weren’t the MAs not parallel enough?

Greetings

agreed… 45 degree is usually a good trend… but this one you went in, i would say is a risky trade… the price dropped too much … koala is slow and steady like a real koala !

[t1c]

Did anybody create Expert Advisor for this system?

[t1c]

Setup for the Expert Advisor is mostly based on intial post to this thread.
There it is:

3 Moving Average Indicators on EUR/USD M15
Period of 3 , 6 , 9
Smoothed and apply to Median Price.
SL is 50
TP is 50
EA also uses Trailing Stop. Once price moves away 25 pips SL is moved closer to the current price.

When testing EA you can change and tweak SL, TP and trailing parameters.
I have used Forex EA Generator to get this setup done without any programming.

What is important about this EA: it waits for Moving Average Indicators to signal, then it will open one type of position,
let say BUY (go long) and will not continue opening more BUY positions until BUY is closed, SELL position is open and closed.
So it opens one type of position (based on 3 Moving Averages), lets it run, then opens another type of position lets it run, etc.
Essentially it is “switching”.
There could be many possible modifications to this EA. Example: close current position if signal reverses, etc.
Use diagram file *.ea4 to modify EA via Forex EA Generator. Use Expert Advisor file *.ex4 in MT4.

[fxster]

Hi t1c,

Thanks for the indicator. i don’t even know how an EA works and too afraid of using it, as some say you don’t have control over your own trade.

Out of curiosity, how do you programme, that it should trade, when the 3 SMA is diverging? i.e. how do you define diverge in programming? It’s a bit subjective right?
Furthermore, sometimes if it diverge too far, means price move too fast, hence too risky to go in.

[t1c]

Hi t1c,

Thanks for the indicator. i don’t even know how an EA works and too afraid of using it, as some say you don’t have control over your own trade.

Out of curiosity, how do you programme, that it should trade, when the 3 SMA is diverging? i.e. how do you define diverge in programming? It’s a bit subjective right?
Furthermore, sometimes if it diverge too far, means price move too fast, hence too risky to go in.

I did not have to program anything I just used the tool.
Take a look at Technical Analysis blocks in the diagram to understand how indicators are compared.

[Learn2b]

hihi welcome… remember to have patience when using koala system… hmmm your software is not MT4?

Hi Trading801,

I have been using the Marketscope charting package with FXCM. I am new.

I just downloaded MT4 and will start to learn how to use it and setup charts with the MA’s for the Koala system (of course with a demo account.)

Hope you don’t mind if I will ask (silly) questions about how to setup the charts.

Again thanks for sharing your system.

Cheers,

Learn2b

[trading801]

Setup for the Expert Advisor is mostly based on intial post to this thread.
There it is:

3 Moving Average Indicators on EUR/USD M15
Period of 3 , 6 , 9
Smoothed and apply to Median Price.
SL is 50
TP is 50
EA also uses Trailing Stop. Once price moves away 25 pips SL is moved closer to the current price.

When testing EA you can change and tweak SL, TP and trailing parameters.
I have used Forex EA Generator to get this setup done without any programming.

What is important about this EA: it waits for Moving Average Indicators to signal, then it will open one type of position,
let say BUY (go long) and will not continue opening more BUY positions until BUY is closed, SELL position is open and closed.
So it opens one type of position (based on 3 Moving Averages), lets it run, then opens another type of position lets it run, etc.
Essentially it is “switching”.
There could be many possible modifications to this EA. Example: close current position if signal reverses, etc.
Use diagram file *.ea4 to modify EA via Forex EA Generator. Use Expert Advisor file *.ex4 in MT4.

this is totally auto? u testing it?

[trading801]

Hi Trading801,

I have been using the Marketscope charting package with FXCM. I am new.

I just downloaded MT4 and will start to learn how to use it and setup charts with the MA’s for the Koala system (of course with a demo account.)

Hope you don’t mind if I will ask (silly) questions about how to setup the charts.

Again thanks for sharing your system.

Cheers,

Learn2b

most welcome

[t1c]

this is totally auto? u testing it?

Yes, it is automated Expert Advisor. I have tested with default parameters but it does not appear profitable with default parameters (stays too long in loosing trades until SL is called).

How to use it:
You can load EA using *.ex4 compiled file into the MT terminal and run it in backtester. Some parameters can be changed there. But not all. If you want to change more parameters or need to change logic use file with extension *.ea4 in software program called Forex EA Generator. It is not complicated.

[trading801]

Yes, it is automated Expert Advisor. I have tested with default parameters but it does not appear profitable with default parameters (stays too long in loosing trades until SL is called).

How to use it:
You can load EA using *.ex4 compiled file into the MT terminal and run it in backtester. Some parameters can be changed there. But not all. If you want to change more parameters or need to change logic use file with extension *.ea4 in software program called Forex EA Generator. It is not complicated.

heehee i still believe in doing the koala way! but do let me know how it is doing… am curious to see how an EA based on my system works …