[-ForexPhantom-] Daily Crossover System
Greetings all,
Check out my new system!
DAILY CROSSOVER SYSTEM
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Time Frame: Daily Charts
Currencies: ALL
Indicators: 2 moving averages + 1 MACD (Not actually used...read on)
Duration of Average Trade: Days � Weeks
RULES FOR SYSTEM
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I will attach the template for my system below.
LONG ENTRY: Blue MA crosses Red MA from underneath - heading upward.
SHORT ENTRY: Blue MA crosses Red MA from overtop - heading downward.
EXIT: Just before or during an opposite MA cross.
S/L: None
T/P: Two possibilities -- No T/P � Use a trailing S/L of 100 pips.
No T/P � Wait for the opposite MA signal to appear.
LOT SIZE: Use a very small lot compared to your equity.
I recommend this formula: EQUITY / 100,000.
So 1,000 dollars USD = .01 Lot size.
5,000 dollars USD = .05 Lot Size.
10,000 dollars USD = .1 Lot Size.
** This is conservative, but trading the daily charts entails more drawdown and big swings. **
GENERAL DISCUSSION
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This system is designed for the busy person in mind. A minimal amount of time is required in trading this system.
This is not a high-volume trading system. You will not be placing dozens of orders per day. Instead, we are waiting for strong signals that occur less frequently.
Most trades will be held for days, if not weeks.
Profit potential per trade appears to be around 100 � 1500 pips.
Expect to average anywhere from 1,000 � 4,000 pips / month with each currency you trade.
Obviously, you will have some losers, so this is only the theory.
This system is trend based and is designed to be traded on the DAILY charts only.
By trading with the daily trend, we are waiting for strong trends to appear. It is unusual for a daily trend to reverse itself � at least not quickly. By then you will have locked in some pips.
I will be demo testing this account thoroughly. My starting balance will be 1,000 USD and my beginning lot size will be .01.
My goal is to grow my account substantially from month-to-month and document my gains and losses thoroughly.
Thanks,
-ForexPhantom-
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File Type: zip daily crossover system.zip (629 Bytes, 3982 views)
Last edited by ForexPhantom; 03-22-2009 at 01:22 AM.
Hi Phantom,
Looks promising, but... :-)
Seems like there is a "but" everytime.
So look for example at the first trade (the 800 pips one). What makes you think that you would have jumped in at the start of the big downward candle? Also what makes you think that you would have exited exactly at the bottom?
Yeah that makes a good trade, but that looks like 250 pips to me. According to the strategy, one would enter at the open of 11.02, and exit at the close of 19.02. Why? Simply because it is when we have the crosses. I didn't analyze the rest of the trades on your screenshot, but I am sure the same applies.
Later edit: The second trade (the 500 pips one) is actually a loss. The entry would be at the close of 19.02 (1.4294) and the exit would be at the close of 25.02 (1.4211). Yeah, at some point the trade will be 357 pips in profit, but would you exit at that point? Also the trade will be areound 140 pips in a loss. Can your mental S/L handle that? What about the 100 pips trailing stop? I am not convinced that is enough.
Also, try to scroll your chart back, and you will see that the price sometimes ranges badly even on the daily charts. This is when you know what is happening.
Just looking at the charts makes us think that we would have entered and exited one candle earlier, which is enough for us to think that a strategy is amazing, instead of just good or less.
Looks like a system anyway, I'll give it a try for sure. Thanks for sharing!
Happy trading,
Marius
Greetings,
I read through your criticisms and I have to say I disagree (respectfully, of course).
OK, let's say just for the sake of devil's advocate:
FIRST TRADE: We enter AFTER the big candle downward. That is still a trade of around 250 - 500 pips! Don't forget to include the wicks of the candles -- this is vital.
Let's further say that it's only 250 pips. That is still a great amount of pips for 2 days of trading! And that is only on ONE currency pair -- Imagine if you have several more trades pulling in the same number of pips.
SECOND TRADE: It could be a loss, but that's only if you wait until the close of the candle. If you trailed your stop, you would have gained 100 - 200 pips! Again, that's one currency pair out of many and that's in a few days.
I think you have to include the wicks of the candles. We just have to find the best trailing stop - which is definitely the way I will trade the system. No initial S/L, but a trailing stop of around 50 - 75 pips. Experimentation will yield the best trailing stop.
Hopefully you'll still test out the system with me because I think it will be better than the 1 HR one honestly. I'd much rather set it and forget it, for sure.
Only one way to find out about the system and that is to test it thoroughly, which I will be doing.
Thanks and have a great day!
-ForexPhantom-
I
Greetings everyone,
I've opened a new demo account for $1,000 to test out the daily crossover system.
I've just placed 3 trades -- all at .01 lots.
BUY -- USD/JPY @ 96.78
SELL -- EUR/USD @ 1.3606
SELL -- EUR/GBP @ .9360
**LATER EDIT**
Oh, I've also placed three different trailing stops: 45 points, 55 points, and 65 points. This is a sort of first-run trial to see which one produces the best result.
I'll keep everyone posted.
Thanks,
-ForexPhantom-
mariuspa's Avatar
mariuspa mariuspa is offline Junior Member
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Dec 2008
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Hi Phantom,
All 3 look like good trades. The only problem in my opinion... trailing so close as 45, 55 and 65 pips when trading the daily charts? I don't think that's a good idea. 100 to 200 would be more appropriate I think.
I repeat, this is just an opinion. I might be wrong... we will see. Good luck!
Happy trading!
Marius