Hi, this is my first ever post!
I placed my first real trade with this system on the FTSE100 Rolling Daily today.
I entered at 6402.8 and exited half at 6411.8 and the other half at 6410.3 as momemtum began to turn downwards.
I entered the trade on 1m timeframe, at the start of the 3rd bar as price crossed the 20SMA. However, I think I will try the 2nd bar as it rises above the 1st bar in future. I exited the trade on the sixth bar. I set my relative MACD Histogram overbought levels to give me an idea of when the price might start to pullback. This helped me with my exit. I also exited the trade as the price moved outside the upper Bollinger Band level (20,2).
I waited a little to see if the price would walk the upper band, but decided that the general trend was downwards today anyway and I took a risk by going long below the moving averages, which I wouldn't normally do. I also had a chart pattern buy formation forming, a double bottom off the lower Bollinger Band. The first low formed outside the lower band and the second low formed inside the bands which is usually a good rally signal.
I have the RSI indicator under the MACD to use as a confirmation signal for my exits. Lucky for this trade I had an overbought MACD, RSI just turning down before it hit 70, and the price turning down from the upper Bollinger Band. I prefer to exit as things start to turn down from overbought levels.
Thanks for this system, it has given me lots of ideas to play with. Thanks for all the informative and interesting posts.
Maybe it was just beginners luck! Time will tell.