Thread: A Proven Simple Strategy (2MAs, 1 RSI)

Originally Posted by ;

quote Please show us a super rigid/mechanical systems like this that doesn't utilize any indiors together with evidence that system functions. Most price action traders are king snake oil revenue men. And its always so handy how their systems can't be proven but they can operate... quote Again this is FIXED lot trading using a very small account of 10,000. If you traded this system using an extremely large account(that most professional traders) you'd have made a mint compounding your outcomes. Also please show me a bank with 6% pursuits rate and I will quit...

I really like where you're going for this and believe this could have some legs. Rather than getting into a flame war with some of the guys/gals on here, just rely on their critisizm and develop/evolv your system... I've learned a lot of things about myself and have been a better person through the past few years from unpleasant critisizm.

Again, I really like where you're going! Any thoughts rgding TP's and SL's??

Originally Posted by ;

quote Hello, Thank you for sharing this system. This is my comprehension of the machine as introduced: Sort: Trend following system, where trend is defined by MA(200) Entry: Entrance retraces captured by MA(5) and RSI(2). Exit: Based on MA(5). The concept is great. Entrance is fine, but one condition -possibly MA(5) or RSI(2)- could be sufficient. But for the Exit, I believe we can handle better exits. And this is what I will try to demonstrate in the coming days. I am not positive whether you generated these tests manually or with the EA, Anyway, I.. .

Hello Khalil!

I personally have not discovered an SL that provides better results than not using one. And even with not using an SL that the drawdown is still extremely low pair to pair. I really do think a great one could be executed as maybe a hard stop but then again the 5 MA ches up to the price very quickly.

I am rather interested in seeing what you find if using the SL. I will play around with the EA you submitted and will share the results that I find.

Originally Posted by ;

quote I love where you are going with this and believe this could have some legs. Rather than becoming into a flame war with some of the guys/gals on here, just use their critisizm and develop/evolv your system... I've learned a lot of things about myself and have become a much better person through the past few years from unpleasant critisizm. Again, I like where you are going! Any other thoughts rgding SL's and TP's??

Hello Shemski,

like I mentioned to Khalil, I haven't found any helpful SL that works and I think it is critical that the TP that the is departing on the touch of this 5 min MA. Here are some figures on SL(based on pip size and market spread TP, so they do not directly apply to the egy but they illue a point) that show the statistical cons you face if you make them too small. This was published on one of my old threads and it presumes the spread is.4(which many individuals is a lot higher so that these numbers are a lot worse)

Assuming Spread is.2
(5 Pip Target for 1:1)
1:.25 = 11 Pips For 5 Pips = 4 Pip Pay Out or 12 Pip Loss After Commissions/Spread. True R:R 1:.45 - 6% Win Rate Needed To Make Up.
1:.5 = 7 Pips For 5 Pips = 4 Pip Pay Out or 8 Pip Loss After Commission/Spread. - Authentic R:R 1:.71 - 8% Win Rate Needed To Create.
1:1 = 3 Pips For 5 Pips = 4 Pip Pay 4 or out Pip Loss After Commission/Spread. - Authentic R:R 1:1.66 - 13% Win Rate Needed To Create.
1:2 = 3 Pips For 9 Pips = 8 Pip Pay 4 or out Pip Loss After Commission/Spread. - Authentic R:R 1:3 - 8% Win Rate Needed To Create.
1:3 = 3 Pips For 13 Pips = 12 Pip Pay 4 or out Pip Loss After Commissions/Spread. - Authentic R:R 1:4.25 - 6% Win Rate Needed To Create.
1:4 = 3 Pips For 17 Pips = 16 Pip Pay 4 or out Pip Loss After Commissions/Spread. - Authentic R:R 1:5.66 - 6% Win Rate Needed To Create.
1:5 = 3 Pips For 21 Pips = 20 Pip Pay 4 or out Pip Loss After Commissions/Spread. - Authentic R:R 1:7 - 5% Win Rate Needed To Create.

(10 Pip Target for 1:1)
1:1 = 8 Pips For 10 Pips = 9 Pip Pay Out or 9 Pip Loss After Commissions/Spread. - Authentic R:R 1:1.25 - 6% Win Rate Needed To Create.
1:2 = 8 Pips For 19 Pips = 18 Pip Pay Out or 9 Pip Loss After Commissions/Spread. - Authentic R:R 1:2.37 - 4% Win Rate Needed To Create.
1:3 = 8 Pips For 28 Pips = 27 Pip Pay Out or 9 Pip Loss After Commissions/Spread. - Authentic R:R 1:3.5 - 4% Win Rate Needed To Create.
1:4 = 8 Pips for 37 Pips = 36 Pip Pay Out or 9 Pip Loss After Commissions/Spread. - Authentic R:R 1:4.63 - 3% Win Rate Needed To Make Up.
1:5 = 8 Pips for 46 Pips = 45 Pip Pay Out or 9 Pip Loss After Commissions/Spread. - Authentic R:R 1:5.8 - 3% Win Rate Needed To Create

(20 Pip Target for 1:1)
1:1 = 18 Pips For 20 Pips = 19 Pip Pay Out or 19 Pip Loss After Commissions/Spread. - Authentic R:R 1:1.11 - 3% Win Rate Needed To Create.
1:2 = 18 Pips For 39 Pips = 38 Pip Pay Out or 19 Pip Loss After Commissions/Spread. - Authentic R:R 1:2.17 - two% Win Rate Needed To Create.
1:3 = 18 Pips For 58 Pips = 57 Pip Pay Out or 19 Pip Loss After Commissions/Spread. - Authentic R:R 1:3.22 - two% Win Rate Needed To Create.
1:4 = 18 Pips For 77 Pips = 76 Pip Pay Out or 19 Pip Loss After Commissions/Spread. - Authentic R:R 1:4.28 - two% Win Rate Needed To Create.
1:5 = 18 Pips For 96 Pips = 95 Pip Pay Out or 19 Pip Loss After Commissions/Spread. - Authentic R:R 1:5.33 - two% Win Rate Needed To Create.

Assuming Spread is.4
(5 Pip Target for 1:1)
1:1 = 2.6 Pips For 5 Pips = 3.8 Pips Pay Out or 3.8 Pips Loss After Commission/Spread. - Authentic R:R 1:1.92 - 17% Win Rate Needed To Create.
1:2 = 2.6 Pips For 8.8 Pips = 7.6 Pips Pay Out or 3.8 Pips Loss After Commission/Spread. - Authentic R:R 1:3.38 - 11% Win Rate Needed To Create
1:3 = 2.6 Pips For 12.6 Pips = 11.4 Pips Pay Out or 3.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:4.85 - 10% Win Rate Needed To Create.
1:4 = 2.6 Pips For 16.4 Pips = 15.2 Pips Pay Out or 3.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:6.3 - 8% Win Rate Needed To Make Up.
1:5 = 2.6 Pips For 20.2 Pips = 19 Pips Pay Out or 3.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:7.77 - 6% Win Rate Needed To Create.

(10 Pip Target for 1:1)
1:1 = 7.6 Pips For 10 Pips = 8.8 Pip Pay Out or 8.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:1.32 - 8% Win Rate Needed To Create.
1:2 = 7.6 Pips For 18.8 Pips = 17.6 Pip Pay Out or 8.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:2.56 - 6% Win Rate Needed To Make Up.
1:3 = 7.6 Pips For 27.6 Pips = 26.4 Pip Pay Out or 8.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:3.63 - 5% Win Rate Needed To Create.
1:4 = 7.6 Pips For 36.4 Pips = 35.2 Pip Pay Out or 8.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:4.79 - 4% Win Rate Needed To Create.
1:5 = 7.6 Pips For 45.2 Pips = 44 Pip Pay Out or 8.8 Pip Loss After Commissions/Spread. - Authentic R:R 1:5.95 - 4% Win Rate Needed To Create.

Because you can see by doubling the disperse, the win rate needed to create up nearly triples. So if you traded with a spread of two and a 10 pip cease to a daily chart, you are basically putting yourself at a minimum 20 percent drawback (in other words your winrate needs to be quite high to exchange a 10 pip prevent system, particularly on a daily chart). Again, these numbers are predicated on pip size and market spread TP, therefore they do not directly apply to the egy but they illue the point I am trying to create hope it makes sense.

FOR ALL THE LEVERAGE JUNKIES

I have noticed a lot of people complaining about the yields demoned using exceptionally low leverage and risk... Well because most people on FF are looking to get rich quick or go busto looking, here are the results using super high leverage(I DO NOT RECOMMEND YOU TRADE LIKE THIS) and compounding the lot size depending on the account size.

USDJPY - 6 Years(2010-2015) - Spread = 2 Pips - Super Leveraged Trading with compounding lot size.

Originally Posted by ;

quote Hello, As I said to Khalil, I haven't found any useful SL that works and I think that it's crucial that the TP that the is exiting on the touch of this 5 min MA. Below are some figures on SL(according to pip size and market disperse TP, so they don't directly apply to the egy however they illue a point) that show the statistical disadvantages you face if you make them too small. This was posted on a few of my older threads and it assumes the spread is.4(which many individuals is much higher so these numbers are much worse) Assuming Spread...

I agree, your win rate needs to be quite great but assuming you risk 1% of your portfolio per trade and utilizing my above example, your SL would be around 25-28 pips. Your profit on that trade alone would've been about 145-150 pips. That's a 5-5.5% gain and in the end of the day your risk was only 1 percent /portfolio.

I'll see if I can mess around with the EA and determine what I can produce...

Originally Posted by ;

FOR ALL THE LEVERAGE JUNKIES that I have noticed a lot of folks complaining about the yields demoned using extremely low leverage and risk... Well since many folks on FF are looking to get rich quick or move busto trying, here are the results using super high leverage(that I DO NOT RECOMMEND YOU TRADE LIKE THIS) and compounding the lot dimensions depending on the account size. USDJPY - 6 Years(2010-2015) - Spread = 2 Pips - Super Leveraged Trading with compounding lot dimensions. picture

What was the position size , 2-3% of protfolio?

I'm getting a market signal on both EUR/USD and Gold. I like both of these signals and by utilizing my suggested SL's, I would set them :

EURUSD: 1.09945
Gold: 1098.26

I will wait for spreads to thin out and take the trade a few hours after the open.

Originally Posted by ;

I'm getting a sell sign on both EUR/USD and Gold. I enjoy both of those signals and by utilizing my suggested SL's, I'd set them : EURUSD: 1.09945 Gold: 1098.26 I will wait for spreads to narrow out and accept the trade a few hours after the open.

Great idea to wait for the spread to calm down. If you trade if the spreads are bad it will drastically change your results.

I would suggest testing the egy with your SL and TP thought and then reporting the results back. I may take a look and test it my self somewhat later today if I've time.

Originally Posted by ;

quote Great idea to wait for the spread to calm down. If you trade when the spreads are poor it will drastically change your results. I would suggest testing the egy with your SL and TP thought and then reporting back the results. I may take a look and test it my self a little later if I have time.

Will do! But again, shorting EURUSD and Gold remains a great gamble.

Sidenote, you are def on to something, watch attachment...

Originally Posted by ;

quote Will do! But shorting EURUSD and Gold is still a great gamble. Sidenote, you're def on to something, see attachment... picture

Yeah a huge point to remember however, is when trading a strictly specialized system, you have to have every trade generated since they come to get the accurate results of the system. Cherry picking the transactions as you move will lead to quite a bit of variance on your performance, which can be good or bad.

Sidenote: Haha thanks. The amusing thing is though this thread will probably not get popular whatsoever because it actually works but does not work good enough for most traders. Which then contributes to the typical system expecting trader as they always are looking for something greater. These markets are already extremely brutal so sometimes it pays to simply be good enough...

At the end of the day, should you expect, goal for or truely believe that you can earn anything more than 10% a month you won't survive . I will take YTD with risk daily!

I will attempt to keep this thread alive and if it does die out only PM me, maybe we can work things out by ourselves.

Let people dreamers dream and see them feed the market.