For the purpose of this example yes, It is really just to be able to put a set figure for an entry.
An entry for the more TA aware may be used before or after this set figure by means of support or resistance.
I tried to post this strategy as basic as possible with a defined entry exit and stops for simplicity. If you feel confident and comfortable entering before or after these suggested area's then fine.
In the actual trade Ive put a link too i did enter long below the ema off what i considered support, there are no hard and fast rules to anything. I meant this method as a bare bones idea for those who are looking to build onto something...
This is the way i started (I actually started trading this on the ibex on 1 and 5 min charts) and added bits and pieces that i felt comfortable with. As your experience builds then the +-20 may go out the window as it did for me but for the less advanced among us we need a definition of an entry and exit until we get to that point
Hope this helps, I think ive probably thrown a spanner in the works
Newton Bomb , nice little strategy you got there, the simple ones are sometimes the best ! I’ve been developing a forex strategy based on similar principles to yours only my buy and sell signals are generated on the chart and I have a few more parameters. The system assumes your in the market all the time. Its great for catching sustained moves on a 10 or 15 min chart. The little whip saws are a pain in the arse but I can filter those out with an Average True Range oscillator ATR(10) but I have to be careful not to filter out the main signals ..doh … . Technical analysis is really the way to go with forex.
If you trade cash market with cmc there will be, you may also loose a few ticks daily when they close and reopen your position sometimes it in your favour sometimes its not.
If your concerned about financing costs then look at a smaller time frame say 5 mins or even 1 mins and just day trade this. You get some good moves from about 730 sometimes...
Entry may be the same ie MA pullback or you can try looking for a BO of a tight overnight range in this case you can tighten your stops accordingly as you will know where the sup and res will be.