Hey Guys,
its Marc from Germany!
I just needed to begin this thread now, as I'm very stuck with my own trading.
To start with, I am just demoing all of this transactions!
Second, PLEASE PLEASE, if you post into this thread, than take action favorably (not something like: I'm better, you are wrong!)
Third, I'm trying to tune up my egy because I wish to filter out wrong signals.
And lastly, this is an all technical egy. Fundamentals aren't considered (except major news I stay aside)
Okay, allow me to begin with describing the egy. I derived it from the Fozzy Daily Method (BIG BIG Due to Fozzy!)
Chart Setup:
RSI8 with MA8 over it.
50 SMA (like Trend Indior)
on a 4h chart
Pairs: GBP/USD, EUR/USD, GBP/JPY,
Thats it. Really this is the initial situation.
Buy Signal: RSI crosses the MA up
Quotation Signal: RSI corsses MA downward
aditionally, major supportresistance lines (horizontally) and fibonaccis (derived from MAJOR swings from daily/weekly charts) allow me to identify reversals (to stay out of transactions )
Alone with this, I dobubled one 5k demo account. Problem: I suppose it was luck (I'm from pessimistical character )
PROBLEM:
I use this (4h!) Method only to ch about 40 pips (if I need or not). That is achieved easily and it goes.
Largely, the following 1-2 bars following the cross are moving in my direction (90%) and flip around after. BUT occasionally it goes in my way )
As I am rather engaged in obtaining a higher percentage I need one or maximum two more indiors, which help me to determine poor trades.
I attempted the following:
Trade in direction of the trend: Nope, did not work out for me. In fact, the trend is not MY buddy
Sell only when Stochastics are overbought and vice versa: Ran quite well, but also few transactions ( I need about 5-8 trades each week)
Buy only when candles are above bollinger bands middle (and vice versa): Nope, again it did not work.
Parabolic SAR (buy when below price and vice versa)I thought that is great... but I wasn't so satisfied wit hsome transactions (maybe adjustable when entering following a RSI/MA cross..we´ll watch )
Exit: S/L on 5% of account together with 1 lot (using 5k account)
or/and at fibo/suppresistance levels
or occasionally when RSI/MA cross in the other direction
Okay, what has to be corrected?
1.) Filter for bad trades
that is where you run into play. Maybe you can help me to obtain a fitting indior which matches my egy (maybe something with volume or cycles)
2.) EXIT! I guess I have to rely on trendlines, fibos etc
Current activity:
Trying as filter: ADX14: DI line above -DI only buy
and when -DI above DI -Y only sell
and asking myself: awaiting second candle to open or entering trade immediately after cross
suppose when situation is uncertain, waiting is much better. However, while volume and strenght is large one can combine a transaction when rsi/ma cross
I will further post my transactions, and I did it. Additionally, I will post my opinion about sup/res lines and fibos.
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The film was created fast. Revealing how action appears. The item in the top richt corner is an signal bar indior found in this forum.