oilfxpro's simple 5 wmas system

[oilfxpro]

Hi

The version presented in post 3 is a better version.Go to post 3
http://www.trade2win.com/boards/for...lfxpro-s-simple-5-wmas-system.html#post408552

Here is a simple 5 wmas trading strategy

5 min charts
euro/usd

Stop 55 take profit 125

Entry:Long positions: Lwma 5 must be greater than lwma 20 , and both lwma 5 and lwma 20 must be greater than lwma 100,and lwma 5,20 and 100 must be greater than lwma 200 , and lwma 5,20,100and 200 must be greater than lwma 400


Short position: opposite set up of long entry

Add a second position if price retraces ie for long price drops 30 pips and for shorts price rises 30 pips

Exit: on profit take or if 100 wma crosses 200 wma

Trailing stop 70

Filter:The above system is presented with a 20 pips filter to entry price .Example if long entry m/a set ups in place at 1.4000 long entry level is 1.4020 and if shorts set up short entry is at 1.3980.Without this filter the m/a systems are losers

Like all strategies manual traders can use their own judgement and get better results.This strategy can be combined with channels and support and resistance on different times frames ie 1 hour ,4 hour and weekly.

Use a Divergence indicator (or chart patterns)for better results
Many indicators tend to imitate the peaks and troughs on the price chart with a series of similar highs and lows. Divergence occurs when the indicator fails to imitate the pattern on the price chart, a sign of trend weakness and likely reversal.

In an up-trend, if price makes a new High (a higher peak than the last) but the indicator fails to do so, that is a bearish divergence.

In a down-trend, if price makes a new Low (a lower trough than the last) but the indicator does not, a bullish divergence occurs.

Use a volatility breakout indicator to confirm a trend or any trend confirmation indicator like Waddah attar

Use with expected changes in interest rates and the system is likely to perform better
http://www.trade2win.com/boards/for...oming-successful-forex-trader.html#post403347



Moving averages strategies on their own are not great strategies , but this one was profitable in the past.Results posted are mechanical strategy without manual intervention and without using a divergence indicator

OILFXPRO

 

[oilfxpro]

Hi

The reason why I posted this system is to show moving average systems ....like hull moving averages etc are all very similiar and results are similiar.

The results are backtests ,actual profits would be much lower than back tests results.

Profit of 400 pips over 3 years and drawdown of 400 pips is a very poor reward.Reward should ideally be 3 *400 pips drawdpwn = 1200 pips reward over 3 years

Many people sell systems like this and many buyers are prepared to buy them.

Some of us give would not use these systems ,if provided for free

OILFXPRO

 

[oilfxpro]

Hi

This version does not use wma exits and is showing far better results than the one in the first post.This is purely mechanical AND CAN BE IMPROVED

5 min charts
euro/usd

Stop 55 take profit 125

Entry:Long positions: Lwma 5 must be greater than lwma 20 , and both lwma 5 and lwma 20 must be greater than lwma 100,and lwma 5,20 and 100 must be greater than lwma 200 , and lwma 5,20,100and 200 must be greater than lwma 400


Short position: opposite set up of long entry

Add a second position if price retraces ie for long price drops 30 pips and for shorts price rises 30 pips

Trailing stop 70

Filter:The above system is presented with a 20 pips filter to entry price .Example if long entry m/a set ups in place at 1.4000 long entry level is 1.4020 and if shorts set up short entry is at 1.3980.Without this filter the m/a systems are losers

Like all strategies manual traders can use their own judgement and get better results.This strategy can be combined with channels and support and resistance on different times frames ie 1 hour ,4 hour and weekly.

Use a Divergence indicator (or chart patterns)for better results
Many indicators tend to imitate the peaks and troughs on the price chart with a series of similar highs and lows. Divergence occurs when the indicator fails to imitate the pattern on the price chart, a sign of trend weakness and likely reversal.

In an up-trend, if price makes a new High (a higher peak than the last) but the indicator fails to do so, that is a bearish divergence.

In a down-trend, if price makes a new Low (a lower trough than the last) but the indicator does not, a bullish divergence occurs.

Use any volatility breakout indicator to confirm a trend or any trend confirmation indicator like Waddah attar.Just set up a second chart on 1 m with 10 lwmas or something similiar ie lwma 5,10,20,30,40,50,60,70,80,90 and u have an indicator telling where there is a trend

Use with expected changes in interest rates and the system is likely to perform better
http://www.trade2win.com/boards/for...oming-successful-forex-trader.html#post403347

Results posted are mechanical strategy without manual intervention and without using a divergence indicator.Here are some better results for the above strategy

OILFXPRO

 

[portomar]

Hi

The reason why I posted this system is to show moving average systems ....like hull moving averages etc are all very similiar and results are similiar.

The results are backtests ,actual profits would be much lower than back tests results.


OILFXPRO

do you include the three ducks sytem in that? are we talkng about an automated system here or is it actively done?

 

[oilfxpro]

do you include the three ducks sytem in that? are we talkng about an automated system here or is it actively done?

Hi

I do not know anything about 3 ducks system.The fully automated version with one is posted here.It shows a great strategy because the system produced 6 pips per trade and that is excellent.It is a system with an edge.The mistake I made was looking at total pips in 3 years ,250 pips a year or average 1 pip per day.

An active manual trader would probably get 2 pips per day but it would have to 24 hours a day at the screen.

Some really nice learning videos on divergence indicators.Just google"VIDEOS FOREX DIVERGENCE INDICATORS"

OILFXPRO

 

[new_trader]

Hi

I do not know anything about 3 ducks system.The fully automated version with one is posted here.It shows a great strategy because the system produced 6 pips per trade and that is excellent.It is a system with an edge.The mistake I made was looking at total pips in 3 years ,250 pips a year or average 1 pip per day.

An active manual trader would probably get 2 pips per day but it would have to 24 hours a day at the screen.

Some really nice learning videos on divergence indicators.Just google"VIDEOS FOREX DIVERGENCE INDICATORS"

OILFXPRO

Oilfoxpro,

What is your performance like as a discretionary trader? Is this what you mean by “active manual trader”? I ask because you use words like “probably”. This gives me the impression that you really haven’t got a clue how many pips a skilled discretionary trader can get.

 

[oilfxpro]

Oilfoxpro,

What is your performance like as a discretionary trader? Is this what you mean by “active manual trader”? I ask because you use words like “probably”. This gives me the impression that you really haven’t got a clue how many pips a skilled discretionary trader can get.

Hi

When I trade manually I can get 10 pips on average daily from trade one currency.I stated 2 pips on average using this system of trading.This type of system is just one trading skill of a discretionary traders trader's reportoire of systems/skills which the discretionary trader uses.The discretionary trader has probably 10 other trading skills or many more and therefore able to make many more pips , by using all the other trading skills.The discretionary trader can read the market wheras this system can't.

A discretionary trader may trader several pairs at a time ,making several pips from each pair AND @$10 PER PIP it is a nice living

Many years ago a trader working for a bank told me "5 pips is the maximum average u can make on euro/usd".That's his experience

OILFXPRO

 

[micky1]

What is the L in LWMA

What is the L in LWMA?

Hi

This version does not use wma exits and is showing far better results than the one in the first post.This is purely mechanical AND CAN BE IMPROVED

5 min charts
euro/usd

Stop 55 take profit 125

Entry:Long positions: Lwma 5 must be greater than lwma 20 , and both lwma 5 and lwma 20 must be greater than lwma 100,and lwma 5,20 and 100 must be greater than lwma 200 , and lwma 5,20,100and 200 must be greater than lwma 400


Short position: opposite set up of long entry

Add a second position if price retraces ie for long price drops 30 pips and for shorts price rises 30 pips

Trailing stop 70

Filter:The above system is presented with a 20 pips filter to entry price .Example if long entry m/a set ups in place at 1.4000 long entry level is 1.4020 and if shorts set up short entry is at 1.3980.Without this filter the m/a systems are losers

Like all strategies manual traders can use their own judgement and get better results.This strategy can be combined with channels and support and resistance on different times frames ie 1 hour ,4 hour and weekly.

Use a Divergence indicator (or chart patterns)for better results
Many indicators tend to imitate the peaks and troughs on the price chart with a series of similar highs and lows. Divergence occurs when the indicator fails to imitate the pattern on the price chart, a sign of trend weakness and likely reversal.

In an up-trend, if price makes a new High (a higher peak than the last) but the indicator fails to do so, that is a bearish divergence.

In a down-trend, if price makes a new Low (a lower trough than the last) but the indicator does not, a bullish divergence occurs.

Use any volatility breakout indicator to confirm a trend or any trend confirmation indicator like Waddah attar.Just set up a second chart on 1 m with 10 lwmas or something similiar ie lwma 5,10,20,30,40,50,60,70,80,90 and u have an indicator telling where there is a trend

Use with expected changes in interest rates and the system is likely to perform better
http://www.trade2win.com/boards/for...oming-successful-forex-trader.html#post403347

Results posted are mechanical strategy without manual intervention and without using a divergence indicator.Here are some better results for the above strategy

OILFXPRO

 

[MGBRoadster]

What is the L in LWMA?

That would be a linear weighted moving average, Micky