c0nundrum
16-04-09, 11:10 AM
Its a system I have recently developed, inspired by Jake Bernstein's great book, The Complete Day Trader. I changed a bit the stop loss and exit rules to make the profits run a bit more.
I call it Stochastic OBOS, for Over-Bought-Over-Sold.. :)
This is basically a trend following system, works well in trend phases. I sometimes filter the trades with Range Indicator to avoid ranging periods.
Pairs
Works best on GBPUSD\EURUSD\GBPJPY
Charts
I use this system on 15M\1H\4H. Of course, If there are conflicting signals the higher timeframe wins...
Indicators
*Stochastic Oscillator (K%=10, D%=3, Slowing=3), remove the signal line (slowing) as you won't be using it here.
*Awesome Oscillator
Entry Rules
Enter Long after Stochastic main line crosses 60 up.
Enter Short after Stochastic main line crosses 40 down.
Stop order is placed 1 pip above the high of the candle (for long), and 1 pip below the low of the candle (for short).
Exit Rules
Exit trade when Awesome Oscillator makes one bar in opposite direction of your trade. Explanation:
If you are long and Awesome Oscillator creates a red bar - exit trade when the bar is closed.
If you are short and Awesome Oscillator creates a green bar - exit when bar is closed.
Just look at the pictures.. it doesn't really matter to be 100% precise in these exits, anyway the trends you'll catch are big enough so late exits won't hurt the profits too much.
Money Management
As usual I recommend not risking more than 2% of equity on a single trade.
Visit my blog (http://tradewithsuccess.blogspot.com/) for more Free Trading Systems and Indicators.
Trades:
http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebluLeZkBI/AAAAAAAAAC4/bMj0RfnVbmw/s320/4.jpg (http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebluLeZkBI/AAAAAAAAAC4/bMj0RfnVbmw/s1600-h/4.jpg)
http://3.bp.blogspot.com/_Zrd_lB3pUm0/SebluABCenI/AAAAAAAAACw/d36dkIASSv4/s320/3.jpg (http://3.bp.blogspot.com/_Zrd_lB3pUm0/SebluABCenI/AAAAAAAAACw/d36dkIASSv4/s1600-h/3.jpg)
http://2.bp.blogspot.com/_Zrd_lB3pUm0/Seblt_xmnXI/AAAAAAAAACo/yseqQqmB92c/s320/2.jpg (http://2.bp.blogspot.com/_Zrd_lB3pUm0/Seblt_xmnXI/AAAAAAAAACo/yseqQqmB92c/s1600-h/2.jpg)
http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebltxPqpVI/AAAAAAAAACg/_wLdnH1QnnI/s320/1.jpg (http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebltxPqpVI/AAAAAAAAACg/_wLdnH1QnnI/s1600-h/1.jpg)
I call it Stochastic OBOS, for Over-Bought-Over-Sold.. :)
This is basically a trend following system, works well in trend phases. I sometimes filter the trades with Range Indicator to avoid ranging periods.
Pairs
Works best on GBPUSD\EURUSD\GBPJPY
Charts
I use this system on 15M\1H\4H. Of course, If there are conflicting signals the higher timeframe wins...
Indicators
*Stochastic Oscillator (K%=10, D%=3, Slowing=3), remove the signal line (slowing) as you won't be using it here.
*Awesome Oscillator
Entry Rules
Enter Long after Stochastic main line crosses 60 up.
Enter Short after Stochastic main line crosses 40 down.
Stop order is placed 1 pip above the high of the candle (for long), and 1 pip below the low of the candle (for short).
Exit Rules
Exit trade when Awesome Oscillator makes one bar in opposite direction of your trade. Explanation:
If you are long and Awesome Oscillator creates a red bar - exit trade when the bar is closed.
If you are short and Awesome Oscillator creates a green bar - exit when bar is closed.
Just look at the pictures.. it doesn't really matter to be 100% precise in these exits, anyway the trends you'll catch are big enough so late exits won't hurt the profits too much.
Money Management
As usual I recommend not risking more than 2% of equity on a single trade.
Visit my blog (http://tradewithsuccess.blogspot.com/) for more Free Trading Systems and Indicators.
Trades:
http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebluLeZkBI/AAAAAAAAAC4/bMj0RfnVbmw/s320/4.jpg (http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebluLeZkBI/AAAAAAAAAC4/bMj0RfnVbmw/s1600-h/4.jpg)
http://3.bp.blogspot.com/_Zrd_lB3pUm0/SebluABCenI/AAAAAAAAACw/d36dkIASSv4/s320/3.jpg (http://3.bp.blogspot.com/_Zrd_lB3pUm0/SebluABCenI/AAAAAAAAACw/d36dkIASSv4/s1600-h/3.jpg)
http://2.bp.blogspot.com/_Zrd_lB3pUm0/Seblt_xmnXI/AAAAAAAAACo/yseqQqmB92c/s320/2.jpg (http://2.bp.blogspot.com/_Zrd_lB3pUm0/Seblt_xmnXI/AAAAAAAAACo/yseqQqmB92c/s1600-h/2.jpg)
http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebltxPqpVI/AAAAAAAAACg/_wLdnH1QnnI/s320/1.jpg (http://2.bp.blogspot.com/_Zrd_lB3pUm0/SebltxPqpVI/AAAAAAAAACg/_wLdnH1QnnI/s1600-h/1.jpg)