Trading System (Forex Primer)

[Jules]

Hi, everyone! Has anyone tried to create and follow the trading system described in Lesson 10 of Forex Primer? What are your impressions? Do you think it is a good system? Does this system generate many profitable signals:)? What about unprofitable ones:(?
Let's talk about this trading system here, it would be very interesting to listen to your opinions.

[CharlieM]

Has anyone tried to create and follow the trading system described in Lesson 10 of Forex Primer?

No, I have not.

What are your impressions? Do you think it is a good system?

As the author says it is a “rudimentary trading system” but it has good bones. With some “tweaking” it can be made into a very good system.
In the past few days the EURUSD has been ranging, being a trend following system, this system may not be the best to use for the current market activity (sorry don’t have my charts available so I can confirm that).
The trailing stop needs to be more clearly defined. When is it moved? How much?

Does this system generate many profitable signals:)? What about unprofitable ones:(?

This website offers a back testing program. (http://forexsb.com) I haven’t tried it myself though.


Let's talk about this trading system here, it would be very interesting to listen to your opinions.

I would at least add the use to trendlines (support and resistance lines\channels) and candlesticks patterns. For example, price is above the 24 SMA, it breaks thru resistance, candlesticks are bullish and Stoch crosses up from oversold = LONG (or something like that)

[Julia]

As the author says it is a “rudimentary trading system” but it has good bones. With some “tweaking” it can be made into a very good system.
In the past few days the EURUSD has been ranging, being a trend following system, this system may not be the best to use for the current market activity (sorry don’t have my charts available so I can confirm that).
The trailing stop needs to be more clearly defined. When is it moved? How much?

I completely agree with you that this trading system is rudimentary at the moment and should be impoved in some way. Then it will become a really good trading system that can be applied to analyse the situation at the current market (for EURUSD and other currency pairs).




This website offers a back testing program. (http://forexsb.com) I haven’t tried it myself though.

Thanks a lot for this link. I have taken a look at it snd I should say that it seems really great at first sight. I'll test it one day. And I really advise everyone who has visited this thread, read through Forex Primer, is new to Forex and has zero or minimal knowledge about it test it. As soon as anyone of you has done that (tested our "rudimentary" or improved trading system described in Lesson 10 of Forex Primer with the help of this system), please comment on it in the same thread.




I would at least add the use to trendlines (support and resistance lines\channels) and candlesticks patterns. For example, price is above the 24 SMA, it breaks thru resistance, candlesticks are bullish and Stoch crosses up from oversold = LONG (or something like that)

Yes, trendlines are good and candlestick patterns can generate very good signals that would confirm your decision to open a position in either direction. I would also recommend to add one more indicator (for example, another MA with another period, say 120) and follow the signals the two MAs generate. Besides, I think fundamental analysis, although it might seem quite complex at first, is really worth using. At least, you can just have a quick look at the news which comes out from time to time and draw some conclusions out of it. Since some pieces of news really help to make sure the step you're going to take (the position you are ready to open) is right.