I am going to share my trading strat with you all. I have been using this for a number of months and the results are pretty consistent. Simplicity is the key here. If anyone has any comments, other than "this system is SH*T" not that I have a problem with that because I do just fine with it...However, this kind of criticism doesn't really get us to far in maybe improving upon the basics that I have in place so far. So if you think it's crap STOP READING, if you like it, have a question or think you can see an improvement please feel free to contribute !!.
I am trading AUD/USD (2 point spread) and FTSE CASH (1 point spread) with this system. I have briefly looked at other markets and it works on all that I looked at.
You need:
MACD set at 12/34/9
Parabolic SAR NORMAL SETTING
SMA 50 period
RULES....BASED ON 1 MIN TIME FRAME....USING FTSE CASH AS AN EXAMPLE....
ENTRY CRITERIA
1. When MACD Histogram Turns Green wait for the second Histogram bar to turn green for confirmation, if SAR is also Green go LONG
2. When MACD Histogram Turns Red wait for the second histogram bar to turn Red for confirmation, If SAR is Also Red Go Short
The caveat to the above is if the Parabolic SAR and Histo switch colours at the same time this is also a safe entry point.
STOPS
1. Dependent on Market, I normally set a hard stop of 10 points but will cut if the SAR or histogram turn against me. On a FTSE 1 min chart with a 1 point spread (courtesy of capital spreads) losses are very limited
EXITS
This is the trickier part, and one I am struggling with a little and in my opinion comes down to how well you can read market conditions. I have a few exit strats that I am using.
1. If the SAR or MACD Histo change colour (eg. Red goes to green or green goes to red)
2. If I hit a fixed point target (zen is 10) then I would look to get out
3. At a significant point of Resistance/Support
4. At the 50 SMA Level
Periods to AVOID....
1. Because MACD is a lagging indicator, sharp moves (spikes) can skew the indicators and knock them out of sync. This is more often a problem on the smaller time frames. If the indicators go out of sync it is imperitave that you wait until they line back up again. By this I mean when the system signals short it isn't signalling a short at the bottom of the market. You obviously don't get the first move once it is back in sync but you can carry on and away with the rest of them.
When following this system it is imperitave that you don't second guess and you HAVE to wait for confirmation. When I have lost the majority of losses come where I haven't waited for confirmation and have tried to get in for the deadly "few extra points"
I am finding on a 1min FTSE almost every signal gives out at least 5 points....apart from when the system is not in sync.
Let me know what you think guys.....
I am trading AUD/USD (2 point spread) and FTSE CASH (1 point spread) with this system. I have briefly looked at other markets and it works on all that I looked at.
You need:
MACD set at 12/34/9
Parabolic SAR NORMAL SETTING
SMA 50 period
RULES....BASED ON 1 MIN TIME FRAME....USING FTSE CASH AS AN EXAMPLE....
ENTRY CRITERIA
1. When MACD Histogram Turns Green wait for the second Histogram bar to turn green for confirmation, if SAR is also Green go LONG
2. When MACD Histogram Turns Red wait for the second histogram bar to turn Red for confirmation, If SAR is Also Red Go Short
The caveat to the above is if the Parabolic SAR and Histo switch colours at the same time this is also a safe entry point.
STOPS
1. Dependent on Market, I normally set a hard stop of 10 points but will cut if the SAR or histogram turn against me. On a FTSE 1 min chart with a 1 point spread (courtesy of capital spreads) losses are very limited
EXITS
This is the trickier part, and one I am struggling with a little and in my opinion comes down to how well you can read market conditions. I have a few exit strats that I am using.
1. If the SAR or MACD Histo change colour (eg. Red goes to green or green goes to red)
2. If I hit a fixed point target (zen is 10) then I would look to get out
3. At a significant point of Resistance/Support
4. At the 50 SMA Level
Periods to AVOID....
1. Because MACD is a lagging indicator, sharp moves (spikes) can skew the indicators and knock them out of sync. This is more often a problem on the smaller time frames. If the indicators go out of sync it is imperitave that you wait until they line back up again. By this I mean when the system signals short it isn't signalling a short at the bottom of the market. You obviously don't get the first move once it is back in sync but you can carry on and away with the rest of them.
When following this system it is imperitave that you don't second guess and you HAVE to wait for confirmation. When I have lost the majority of losses come where I haven't waited for confirmation and have tried to get in for the deadly "few extra points"
I am finding on a 1min FTSE almost every signal gives out at least 5 points....apart from when the system is not in sync.
Let me know what you think guys.....
