Hello everybody. Here is a system I’ld like to share with you all. Please feel free to go through it and any comments, critiques (not hatings), contributions , questions and suggestions you have will be welcome. And I’ve named it after yours truly, richbugger. Here it is:
- Moving average on 4H chart, EMA, Median Price (HL/2), Period = 60
- Moving average on 1H chart, EMA, Median Price (HL/2), Period = 60
RULES FOR BUYING
We buy when:
1 - When Price crosses the 4H Moving average and is greater than the value of the 4H moving avarage by at least 20 pips. (i.e Price>=4H MA). Tip: Stop orders can be used insead of waiting for price to cross.
2 - Price is greater than 1H moving average. If price crosses the 4H moving average but is still lower than the 1H moving average, then wait for the prce to cross the 1H moving average by at least 20pips. Usually though, Price will cross the 1H moving average before it crosses the 4H moving average. This is to try to filter out fake outs.
Stop Loss when buying:
Stop loss is set to 30 pips below the buying price. The stop loss is then adjusted to be equal to the 1Hour MA, once the 1H MA is greater than the stop loss value.
When to take profit:
Profit is taken once price crosses the 1H moving average from on top. In other words, we are kinda using the 1H MA as sort of a trailing stop.
When to re-enter:
Sometimes after we have taken profit after a retracement, the main bullish trend may continue, and we will re-enter the main bullish trend once Price is at least 20 pips above the 1H MA.
Stop loss rules remain the same, and will be started off at 30 pips and then be adjusted to be equal to the 1H MA once the 1H MA is greater is than our initial SL level.
And another important rule is: we will not trade short when Price is above the 4H MA, even if it is below the 1H MA. This is to avoid trading against the main trend and to help filter out some fake-outs.
RULES FOR SELLING
Selling rules are basically the opposite of the buying rules.
I’m busy most of the time with work and dont have time to be sitting in front of a screen the whole day. So this stategy is supposed to give you the freedom to do what you want and to just check the charts here and there during the day and to adjust your stop order, and stop loss levels. Like I said, I’m still experimenting.
I’ve been testing this on domo for a few weeks and it seems to be doing okay. It performs better in trending markets than in ranging markets. I’ve tried it on the E/U and G/U pair and today I’ve started it on the GBP/JPY pair. I have high hopes the GBP/JPY pair. The unfortunate thing about this strategy is that it can be hit by fake outs some times so I am still trying to figure a way to filter out fake outs.
Please note this is the first strategy I’ve ever developed myself, so it could maybe be tweaked hear and there, but I believe in KISS (keep it simple and stupid).
Also I’m hoping to learn mql4 so that I will be able to develop an ea for this strategy because I think it will help me to discover what the best settings are for this system (e.g sl of 40 instead of 30 pips and stuff like that). Also there are some trades I’ve missed because I was not at my computer when they happened and which is so frustrating so that is why I also want to develop an ea for it.
So please peruse through my system, and see if there are any ways in which we could make this system better. Feel free to add suggestions, questions, comments, contributions etc.
I might add screenshots but I dont think it will really be necessary cuz I mean who can’t add a MA to a chart.