1) 30min Chart Only
2) 5EMA and 21
2a) I added a ribbon to make it easier to see on a phone. 7,9,11,13,15,17,19 EMA's
3) - Set at 3/26/1
4) set to 10
Sell Entry Rules:
1) 5 must cross below 21 on a bar close
2) The Price Bar must close below the the 21EMA
3) must be less 0
4) needs to be greater than 30 (I like it better when it is greater than 35)
5) GO SHORT on the open of the very next bar where all conditions are met.
6) Set a TAKE PROFIT for the first 100pips
7) Put your initial stop above the must recent trade high bar. Once it moves in your direction trail your stop according to your money management goals.
8) Close Trade if a BUY SETUP is initiated.
BUY Entry - Reverse of Sell.
Observations - you very seldom will get more than 100-110pips trades seem to average in the 45-60 pips. The 30min timeframe gives you good moves but as with all trend systems choppy sideways trade can cause churn.
Aggressive Mode is to take every trade. Conservative mode is to add a 200 to the chart and when the 5EMA and 21EMA are below only take the SELLS and vis-a-vis only take the BUYS. As the 5/21/200 converge wait for the next trend confirmation. This Conservative approach follows general Swing Trading Theory with Timeframe Trend.
Again a simple approach for those that may only have a few moments a day to do any homework. If you add alerts in Trading View you can receive a text message when the 5EMA crosses the 21EMA - this will help you from always checking your phone. Note: the alert will come based on current price remember the rules that the action takes place at the close of the bar.
If anyone has other simple setups I would love to see them.
I read your conversation and spent some time implementing this promising trading system.
I cannot manage to publish the script, Tradingview gives me weird error.
I uploaded the complete stragegy here : http://txt.do/dhqj6
You can just use it in tradingview pine editor and backtest it ( I setup a test period of one month : january 2018 but it's fully customizable ).
I spent some time tweaking parameteres, especially TP, SL an trailing stop. I reached a set of values that gets good results but you can improve this I am sure.
Here is a screenshot of some results on EURUSD 30min ( backtesting on last 3 months ) : https://image.ibb.co/iJ2YbH/Capture.jpg
Well i am interested in having a good trading system to trade with, but i'm not an experienced trader, mostly a programmer.
I'm sure one of you could optimize much better the TP/SL & trailing stops parameters so the system gets better results ( like less trade per month for instance or I don't know ).
Any help from you would be very appreciated !
Now i corrected the mistake and I have outstanding results if I understand well : https://image.ibb.co/gbrn3x/Capture.jpg
summary : last 3 month -> 48 trades, 95% profitables bringing 11% profit with a 1 order max at time, max 3% of portfolio.
Again, im just a programmer, with very little experience in trading, but i find these results much more than decent, I understand why you like this system @KXRTrading123 !!
Any comments or help or improvements ( especially regarding take profit/ stop loss are welcomed !)
Hello and thank you for the response. I am sorry for my late response.
I used NinjaTrader to program and test the strategy as I am mainly an automated systems trader. I test the strategy on other instruments such as crude oil and gold.
I am still testing and optimizing the strategy and applying some dynamic filters rather then using static TP and SL.
Manually trading the strategy is much better cause I can manage and trail the trade.
Would you mind sharing your Ninjatrader strategy code in private message?
I'm still struggling with long entry condition ( negating the sell entry does not work apparently. There's something i'm missing here ..)
Would be very kind of you.
thanks a lot
Another question please, I am still trying a few back testing methods.
Can you explain what you mean by: "As the 5/21/200 converge wait for the next trend confirmation." Are you stating once the 5/21/200 start approaching each other, do not take the buy and sell signal and wait for a distance between the ma, atleast until 5 and 21 is far from the 200?
Merry Christmas to you. Sorry late reply I been a bit busy.
I am still practicing the strategy and it has been working well on bitcoin as well because that market trends very well, but lately the volatile has been to much which can causes big stop losses. But I still sim trade cause I love the price action on bit coin.
I really like the conservative approach to make sure I am trading with the trend. And I like the 30 min chart cause I work full time and sometimes have a busy schedule. I can make a trade, set my stop loss, profit target, a few price alarms to trail , and walk away.
One thing I learned from previous trading day to day, is that some strategies work for different markets conditions, I believe this one will work well in trending markets. I also like how the how choppy could be avoided with the statement "As the 5/21/200 converge wait for the next trend confirmation". That is very very helpful that you stated that. Cause this can avoid getting chopped up while the market is in low range movement days. This make the strategy adaptive to different market conditions. A simple approach is to limit trades to one per day to avoid choppy.
I am still manually back testing the strategy and taking some notes as I go.
Another questions please. I am curious to why the MACD settings (which is tracking the 3 fast and 26 slow EMAs) is close to the EMAs of 5 and 21? I would think we want the MCAD settings a bit bigger then the upper EMAs settings.