Great technique for beginners...

[sibaroochi]

I'm testing a system of my own using a simple 50-period moving average cross (which is similar to your ichimoku system). I'm testing the following tp and sl levels and they may help your system in bagging the big gains while limiting losses:

TP 1: +20 .............. S/L: -20
TP 2: +40 .............. S/L: -20 (Trailing Stop set to 20 when +20 is reached)
TP 3: +90 .............. S/L: -20 (Trailing Stop set to 40 when +50 is reached)
TP 4: +150 ............. S/L: -20 (Trailing Stop set to 40 when +50 is reached)

*Trailing stop of 20 is set for every trade when trade reaches +20

Explanation: Obviously this involves 4 trades.
Advantage: Due to the initial Trailing stop of 20 on all 4 trades, once the price hits +20 all 4 trades escape from being negative. In the forex game, limiting your losses is more important than the profit. If your system has a high % of hitting +20 then this idea works.

When tweaking the Take Profit #s for your system, I don't know what the range of profit is for your system, but I would set TP 4 to be around the highest pip gain your system can make and adjust TP 2 and TP 3 accordingly.

My idea is based on my strategy of auto-trading a Simple 50-period MA crossover system. If your strategy proves successful I'd be itching to figure out an expert to auto-trade it.

[misterm]

I am trying this technique and have good results.But today I was in doubt the disruption on the line Kijun-sen.. Look the image.. Please any say me if this is a entry point?

[bagovino]

I've also been messing with a 50SMA/ K-S cross system as well. I have been nailing the market about 90% of the time! I'm using a few different indicators, multiple time frames and a couple additional MA's for confirmation. When all my indicators line up the trade is as close to a sure thing as it can be! (ATLEAST 30 pip profits per trade with 2 or 3 trades per day per currency. I trade EUR, GBP, CHF & JPY all against the USD. Thats 8 trades times 4 currencies, 32 trades. Let's say an 80% win rate is 25 winning trades. Thats 750 possible pips per day! I use 20 pip stops, so if the five losers cost me 100 pips I STILL WIND UP WITH 650 PIPS PER DAY!!! The trick is watching the market to catch all the trades. If we can only automate this... Hmmm...)

I noticed that even without all the other indicators I use, when price crosses the 50SMA and K-S line it continues in that direction. Now when you add multiple timeframes, RSI, a couple other MA's, Fibs, and trendlines you just nail it!!!

I am going to continue to test my exact formula for a while until I optimize it to the best of my ability. I will then expose it here in hopes that you fine, talented people can help further tweak it so we can all benefit!!!

Billy

[initialsBB]

Try using 62 EMA - it gives better picture of what's happening

[bagovino]

CORRECTION!!!!!!


I'm sorry... All these numbers thrown around I made a major miscalculation! I got excited with all these pips!!!

The REAL probabilities are:
3 trades per currency per day. Thats 12 trades per day. 80% win ratio is 9.6. Lets say 9 out of 12 are winners. Lets only use a 20 pip profit and 20 pip stop. Thats 180 pips with a draw down of 60 pips for the 3 losses. Thats 120 pip profit per day. And thats conservative!!! If you watch the trade obviously you'd let the winners run even more using a trailing stop and multiple lots!

Again, please feel free to put your 2 pips in!!!

Billy

[fxmktlgc]

What is your primary timeframe for this?

Originally Posted by bagovino

I've also been messing with a 50SMA/ K-S cross system as well. I have been nailing the market about 90% of the time! I'm using a few different indicators, multiple time frames and a couple additional MA's for confirmation. When all my indicators line up the trade is as close to a sure thing as it can be! (ATLEAST 30 pip profits per trade with 2 or 3 trades per day per currency. I trade EUR, GBP, CHF & JPY all against the USD. Thats 8 trades times 4 currencies, 32 trades. Let's say an 80% win rate is 25 winning trades. Thats 750 possible pips per day! I use 20 pip stops, so if the five losers cost me 100 pips I STILL WIND UP WITH 650 PIPS PER DAY!!! The trick is watching the market to catch all the trades. If we can only automate this... Hmmm...)

I noticed that even without all the other indicators I use, when price crosses the 50SMA and K-S line it continues in that direction. Now when you add multiple timeframes, RSI, a couple other MA's, Fibs, and trendlines you just nail it!!!

I am going to continue to test my exact formula for a while until I optimize it to the best of my ability. I will then expose it here in hopes that you fine, talented people can help further tweak it so we can all benefit!!!

Billy

[bagovino]

It's a tier time frame. Primarily the hourly, but I use the daily and 4 hr for confirmation.

[sibaroochi]

Bagovino,

I'm excited about what I've seen with this seemingly simple strategy ... JUST a 50WMA indicator and a price cross. I've been painstakingly backtesting it by hand for the last few weeks and am itching to complete my expert advisor for it so I can backtest it quicker and more thoroughly with tick by tick data.

I can't imagine why I haven't seen a thread yet talk about this strategy. I've created a new thread on it and urge you and everyone to come share your ideas. http://www.moneytec.com/forums/showthread.php?t=17895

Originally Posted by bagovino

CORRECTION!!!!!!


I'm sorry... All these numbers thrown around I made a major miscalculation! I got excited with all these pips!!!

The REAL probabilities are:
3 trades per currency per day. Thats 12 trades per day. 80% win ratio is 9.6. Lets say 9 out of 12 are winners. Lets only use a 20 pip profit and 20 pip stop. Thats 180 pips with a draw down of 60 pips for the 3 losses. Thats 120 pip profit per day. And thats conservative!!! If you watch the trade obviously you'd let the winners run even more using a trailing stop and multiple lots!

Again, please feel free to put your 2 pips in!!!

Billy