Trading with moving average (week 1 & 2)

Recently I've found a relatively simple trading strategy by moving averages. I wish to trade following this strategy for next few weeks. I've added my trading account with myfxbook account and put a widget, so that everyone can see the results. I won't be posting regularly about that, rather you'll just check the results....

Name of the strategy: Dancing with EMA (given by owner)
Strategy collected from: FF
Currency pair: EUR/USD, GBP/USD, EUR/JPY
Time frame: 4H
Indicator: 50 EMA & 5 SMA
Trading Environment: Trending market
Entry point:
Long: when 5 SMA crosses from below to above of 50 EMA and closing candle goes at least 100 pips....then enter long position after closing of current candle 100 pips away from 50 EMA.....

Short: Vice versa...

S/L: 100 pips

Progress: We'll enter again when the 5 SMA touches the 50 EMA with a stop loss 100 pips and the difference between two order should be at least 80 pips and the S/L of first order should be brought to the level of second order.... continue this until stop loss hit....

Now, let's go for an example....

GBP/USD pair

See the 5 SMA line crosses above the 50 EMA line to go beyond 100 pips.....After crossing the target pips... a long position taken.... Now check where is the position of crossing 100 pips..

GBP/USD pair

Order was placed on the next candle.... it was a late call though, as usual.... Now wait to see what happens next.... See now... after weekend.... gain of > 50 pips

GBP/USD pair

Good pip collection.... but according to the strategy we have to wait.... so wait... I've using the strategy in all the recommended pairs... Now see, how other two pairs are doing now....

EUR/USD pair:

EUR/JPY pair:

I'll post the progress later.... Now, 130+ pips in all three pairs (on 23.01.2012)....
On 24.01.2012 --
GBP/USD pair: 44+ pips
EUR/USD pair: 60+ pips
EUR/JPY pair: 65+ pips

Total 170+ pips (on 24.01.2012).....

On 25-01-12:

On 26-01-12:

On 28-01-12:

Examples of bollinger band breakout strategy

Today I'm going to show you some results of bollinger band breakout strategy with 4 different currency pair. As usual I missed all the opportunity as I was studying another strategy about which I'll start posting soon. Now come right with the examples.... These will help you understand the strategy more......

Strategy collected from: mt5 forum
Currency pair: Any
Time frame: 1h
Indicator: Bollinger band only

 

USD/CHF pair:

USD/CHF, 1h chart

Look, candle broke the upper BB intersection line. Long entry on next candle could have given 15 pips at the time capturing the screenshot.

NZD/USD pair:

NZD/USD, 1h chart

Have you found the signaling candle?? It's a tough call.... signalling candle seems to be touching the lower BB intersection line and it's a bullish candle... So a scope for long entry....

USD/CAD pair:

USD/CAD, 1h chart

With a huge price movement, a good long entry signal generated.... Keep pip hunting....

EUR/USD pair:

EUR/USD, 1h chart

Bearish candle produced short entry signal by crossing bellow the lower intersection line.... now see the same currency pair.... but signal generated by a simple strategy by FSR.

See also:

Pips with bollinger band

GBP/USD, bollinger band strategy

Forex trading is not at all an easy job. When you here someone talking about forex trading, some success stories, forex trading seems to be very easy. Sometimes we wish, we could trade like that.... Initially I also thought like that. But it needs a vast knowledge to be succeed in forex trading. Not only knowledge but also control of our emotion, managing time, maintaining discipline etc is equally essential.



Now I'll talk about another trade by bollinger band strategy with another currency pair.

Strategy collected from: mt5 forum
Currency pair: GBP/USD
Time frame: 1h
Indicator: Bollinger band only

Today, there was a good trading opportunity. Yesterday, this pair showed no opportunity with this strategy. But today it showed a strong opportunity.

The blue box is the area when we had to enter a short trade. But I was at my job place for which I missed it. Look how far it went down.... almost 90 pips... dream trade for a newbie with such a simple trading strategy. The current shown price was the first time I looked at the chart after it provided such a good short entry signal. As I was away from trading terminal due to unavoidable reason... I thought.... with such a good trend, let test that whether we can gain some pip here at this stage...

Here I traded twice along the trend.... Lost 21 pips and gained 10 pips... net 11 pips loss. I think.... controlling emotion is essential... missing a good opportunity always tries to compel me to enter a trade at a later period when it seems that there is more pips to take.... but actually this is the oversold area (in this case).... I think most of the newbies are failed by this temptation..... Control... control... secret of a successful trading.

EUR/USD, bollinger band strategy

I've already told about this forex trading strategy. This looks quite promising in a trending market. In a consolidating market, it might give false or no signal. Now here is an example of trading experience with this strategy. This example is from yesterdays trading. 6 trade resulting in net 35 pips.




Strategy collected from: mt5 forum
Currency pair: EUR/USD
Time frame: 1h
Indicator: Bollinger band only

As usual, I missed the first large bearish candle where I could enter with a short position according to the strategy and thus I missed the opportunity to take about >45 pips. Huge one for a newbie like me. But as I was on demo trade, I entered into a short position at the next candle which was actually a bullish candle.

In this bullish candle, I've traded 6 times and got net 35 pips. Every time I entered a position.... I followed the trend.... that is short position when price went up.... after entering the position when price again went down....I closed that position. See where I've done it...

 Now, see the end result of this candle....

The 35 pips generating candle body became a tiny horizontal line...... Now you can see the candle starting next to my 35 pips generating candle.....it's bearish looking. Do you want to see what happened next.....

I can't believe my eyes.... two large bearish candle each one having about >40 pips.... and I don't believe that every time I miss those large candles.... by actually not seeing them live.... as I had to go to my job, I couldn't monitor the chart and missed such a large move of price..... I think, mobile trading could have saved me here.....

Happy trading!!

EUR/USD, 1h chart - Short position

Strategy collected from: FSR
Strategy no: Simple #1
Trading platform: MT4
Currency pair: USD/JPY
Time frame: any
Indicators: 5 & 10 EMA, Stochastic (14,3,3) & RSI (14)

I've used 12 EMA here.... not for any special region... initially I didn't realized that I've put 12 EMA instead of 10 EMA....

Here is a short signal and I entered the position--

I entered with 2 micro lots.... got 10 pips here.. but if went down more.... I think if I closed the position partially then I could have gain more pips....

Previous results:
USD/JPY

Trading with trend rider

I was demo trading with EUR/CAD currency pair with the help of an custom indicator, trend rider. Let's see how it looked on screen-

Idea is to enter a trade when both the lower two rows display similar color. Go long when blue and go short when red. As this indicator repaints, I waited some more bars to appear before entering. 1h time frame gives more noise so I used 4h chart.

I've set the TP and SL according to the advice of the indicator... It hit stop loss before going up on the same bar and the lower bars still showing blue....

I'll do some more trade with this tool as it showed promising result when I looked back in the chart. I think I've entered in a quiet market. It would be better to add some more indicator to filter the false signal. This week, I'll only use this indicator and next week, I'll try adding some filter.


Another thing, I want to remind, I'm not using news.....so it may influence my results...

Till next week....we'll monitor the ability of this indicator.

Happy trading....

A good trading strategy with Stoch & MAs

Strategy collected from: mt5 forum
Currency pair: GBP/USD
Time frame: 4 hour & 1 day
Indicators: Slow stochastic (13,5,5) on both chart and 4, 13 & 50 EMA on 4h chart

Rule of entry is: Long when 4 EMA crosses above the 50 EMA followed by crossing of 13 EMA above the 50 EMA line when Stoch lines are headed upwards and not in overbought area. Before entry, check the daily chart whether it's also giving the same signal.

Here, this is a condition where the Stoch is in overbought area....I'm facing this problem regularly.... Am I doing wrong or should I take this risk on me....

If I need to take risk here.... see... 13 EMA just crossing above the 50 EMA line.... we have to enter after closing of the current candle. See what happened entering this trade....

 

Daily chart

Now..... are these strategies just theoretical or just not working anymore... old...

MA crossover gives late signal.... how to solve it?? I think, I should continue practicing with the strategy more....

4 hour MACD strategy

Strategy collected from: mt5 forum
Currency pair: Any
Time frame: 4 hour
Indicator: MACD (5,13,1) & MA (8 EMA, 21 EMA, 89 SMA, 200 SMA & 365 EMA)
N.B.- Personally I think first 3 MA is enough... It's my newbie thought.

I've taken USD/CHF pair as an example here... After opening the chart, put the MAs and MACD. You'll look like it....

With the crossover of 8 EMA below the 21 EMA & 89 SMA line followed by 21 EMA line to cross below to the 89 SMA line supported by MACD below zero line--- A sell signal...

As I was continuously studying keeping the charts minimized in the tray, sometimes I miss good opportunity in my demo trading. Here, see I could have entered the trade one candlestick back.....It could have given me some good pips....

As price moved towards my direction, I've moved my stop loss forward to a 15 pips gain level.... trailing stop.... I want to see, how long it can go from here.....

Let us see a little backwards by the time price continues to go down-- There is a buy signal... about a week back...

With a strategy, continuous monitoring is needed to get into any trade and to achieve the best from a trade.

At last, the price hit the trailing stop loss at 20 pips gain.

Happy trading!!!

Pips with bollinger band

Strategy collected from: mt5 forum
Currency pair: Any
Time frame: 1h
Indicator: Bollinger band only

Now--
Open any chart for any currency pair with a time frame of 1 hour. Then you'll need to draw vertical lines on the candle at 00.00 hours... To do it, keeping the chart on top, click Cntrl + Y. Insert bollinger band with a deviation of 1.5 instead of 2. If you've done this.... let's see how it looks on the chart:

At this stage, you'll need to draw two more horizontal lines. For this, consider the latest vertical line on candle zero. Put the horizontal lines here the vertical lines intersect the candle zero vertical line. To get some back testing, I've taken the third vertical line from the last. Let's see how it looks--

Entry rules:
For a long entry:
1. When a candle breaks down to the lower horizontal BB intersection line and closes above the line....
2. When a candle breaks up above the upper horizontal BB intersection line and closes above the line....

For a short entry:
Vice versa.....






Take profit:
For no 1 long entry: when candle crosses the upper horizontal BB intersection line...
For no 2 long entry: TP 20 pips only...

For no 1 short entry: when candle crosses the lower horizontal BB intersection line....
For no 2 short entry: TP 20 pips only..

SL: Half the value of TP

See... Good entry point... Now, I'll go for live example. I'll shift the horizontal lines to the latest candle zero. Could you find the good entry point?

Check from the next image whether you're right or wrong.....

See, more than 50 pips already....and it's going up more....As this opportunity is already gone for me, I'll wait for the next candle zero to get my good entry point....

Read more:

Example of Bollinger band trading