Hi Mark/all,
This looks like a very interesting system Mark. My interest was sparked by the fact that you have been trading it successfully already, and that it was taught to you by a pro. I also like the slightly esoteric way of using the RSI.
I'm interested primarily in trading this manually on H1, H4 and D1 timeframes (although if someone could code it, I'd certainly have a close look!).
However, to trade it manually we need clear rules - and even clearer ones that can be turned into maths for the coders!!
I've read the thread 3 times now and the rules are scattered all around the place!
So, I thought I'd have a go at summarising the rules/raising a couple of questions..............
For all examples, assume I am talking about going long, and all based on candle close.
Please feel free to correct me or add to my ramblings!
So.........
We want the 3EMA to cross from underneath to above the 8EMA, ideally within 3 (max 5) candles of a “pivot” low or fractal low.
We want the RSI to be above 55, having gone through the 45/55 zone at a nice angle between 12 and 2 o'clock.
I'm ignoring ducks 5 & 6 for now.
That's the entries, which I think is pretty straightforward.........
However, exits aren't completely clear to me!
Initial SL is placed below the 3rd candle back (the first candle you count being the current one you entered at the start of).
TP1 = SL distance.
TP2 = 2 x SL distance etc.
When price gets to TP1, move SL to break even.
When price gets to TP2, close 80% of your position and move SL to TP1.
Then trail on each TP.
BUT, do we add BOTH the following rules to this and exit at which ever one happens first?
1. Exit if 3EMA and 8EMA cross back over so they are in the “wrong” direction.
2. Exit if the RSI goes below 45.
Looking forward to hearing your answers on this Mark, because I think this has really got legs!!
Thanks,
Rob
so TP - 25 pip. SL is now BE.