Monday, June 30, 2008

Forex System

I've been trying to find a system that I can use for trading forex. I've tested some systems throughout forward and backtesting and I've learnt that anyone's system would work depends on their own trading style. I've learnt that "surfing" with the trend is much safer than "fighting" against the trend itself.
As for me, no, forex is not the place to get rich within a few days, however, forex needs a hard-work to achieve great results.
I've backtested a system that suits my trading style and the "Jedi Master" himself, Phillip, has answered many questions for those struggles in his thread using 4hour MACD system in Forex Factory.
I am also using his system as my strategy as it supports what I see on the chart. As for price, I prefer using candlestick to identify price action rather than bar/line chart.
At least but not the last, thanks to Phillip who wants to share his system and also to Palmer (Chris) for helping many traders around the world to get used to the rhythm (I like the homework you made in pdf, helps alot : )

Here is the setting for 4hour MACD:
1. Fast EMA 5
2. Slow EMA 13
3. MACD EMA 1

1. Level +0.0015
2. Level +0.0030
3. Level +0.0045
4. Level –0.0015
5. Level –0.0030
6. Level –0.0045

As for additional indicator Phillip has also attached Moving Averages in order to get an idea where to set Target-profit, Support/resistance, or current trend situation.

Here is the setting for MAs (colour them to make it easier to identify different MAs):
1. 365 Exponential Moving Average (365EMA)
2. 200 Simple Moving Average (200SMA)
3. 89 Simple Moving Average (89SMA)
4. 21 Exponential Moving Average (21EMA)
5. 8 Exponential Moving Average (8EMA)


After those settings are made, your chart should look like this:


Edit: I've added a template for Phillip's 4hour MACD Strategy for traders to get the same chart as mine.

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