Trading Methods, Techniques and Ideas
Submitted by Edward Revy on January 17, 2009 – 11:08.
I’m glad to open a new section of our website dedicated to trading methods, techniques and ideas.
Here, me and my team, and hopefully you as well, will be sharing our favorite trading methods, for example, the best method to exit a trade, the best method to filter trading signals, a favorite method to identify ranging markets, a favorite entry method etc.
As you can see, it is all about splitting a trading process into distinctive parts and perfecting each part separately.
Creating a complete system takes time, focusing on one part of it is much easier and, in fact, oftentimes is more effective; and that’s what we’ll be doing here!
I hope to make this page one of you favorite pages and see you among our regular visitors and active participants.
and my best Forex Strategies Team
I’ve read your page since several weeks and working very hard with this.
Thank you very much for your marvellous side. If other people would winning your ego and that of your team, the world would be in best form. Congratulation.
Obama will give positive inputs to America and you put positives to your Forex platform. Many thanks!
I’ll send you a strategy and I want to ask you a big favour making it perhaps more practicable.
Kind regards from Switzerland
Thank you for you kind words.
I’ve got your strategy, which I’ll prepare and post tomorrow.
What I didn’t get is the screenshots. We use a third party module to upload files. Unless you specify the link to the uploaded file, we are not able to track it back.
Could you please find a minute to re-submit the screeshots this time pasting a link that you’ll receive upon uploading into a comment.
Here are the uploaded Files Link:
I hope I’ve done it correct.
Kind regards and best wishes to your team.
You’ve done a great job!
I’ve published the strategy already (here), and will return with comments and ideas later.
I wanted to have a little overview of Indicators being used in trading methods. I screened the 44 methods/strategies (from simple via complex to advanced) and prepared a little tick-list of Indicators either being used alone or in combination.
This is the result:
Total of strategies = 44 (30-7-7)
Averages – trend indicators such as EMA, SMA or WMA a total of 21 uses either alone or combined with the one or the other indicator;
“Breakout” 8x / Bollinger 3x
Support/Resistance, Candles, ZZ and CCI 1x each.
What does everybody say, when it comes to FX education?
“Follow the trend”!
Wwell, well – it’s done here.
Cheers from Jamaica
I would like to share some observations re crossing of averages, actually Simple Methods No. 1 2:
Some time ago I had serious problems with rallies up or down finding myself battling against the trend. You know how embarrassing this is even on the demo. Eventually I found the solution mainly on the 15M sheet using SMA crossing. Comparing both, SMA and EMA I found the early detection method more on the side of the SMA rather than EMA. EMA lags SMA by some days on the 1D, some hours on the 1H and even 1-1.5 h on the 15M sheet. Since time is money not alone in FX, I tend to prefer Method No.1 as the early detector.
Another observation is that crossing indicates lots of momentum, actually indicating that rallies are coming up.
Maybe the one or the other of you would like to comment, which I would appreciate greatly.
Cheers from Jamaica
I like the way you approach trading, it’ll reward you in the future.
I should point out that analysing Moving averages by looking at history charts is different from doing a forward testing. The problem is: moving averages like to cross and then later “uncross” upon calculating new values as the time goes by.
It should probably happen more in the case with EMAs’ crossover, because they put more value on the recent price changes – react faster. But then, they are as well fast to change their statements (“uncross”). SMAs are much smoother and don’t alter their parameters too much.
For daily as well as 4 hour and 1 hour trading the preference is given to SMA indicator. They are more likely to react in time. Sometimes they’ll be faster, at other times, not. There are no perfect moving averages that would always be sharp right on signals.
You’re right about the momentum observed upon Moving averages crossover.
If you look closer, you’ll be able to see that after a moving averages cross, 90% of the time a price will retrace before a rally. Entering on that pullback/pause is the best place to be. (Sometimes you’ll see a retracement on the same time frame, sometimes you’d need to look at a faster time frame to spot it).