The advanced 5-12 trading strategy - by Kathy Lein

[stream1981]

How to deal with the system

To buy, wherever EMA 5 crosses EMA 12 upside and RSI 21 was above 50, you can take a long position. This applies for going short as well but conversely.
As shown in the figure below, you could have made as much as 615 pips. I have back tested this strategy from the beginning of 2010 to the end of 2011. Not only there were no- losing months, but also the average profit was not less than 250 pip. There were even some months with 1800 pips in profit. You can go to AUDCHF chart and check this out on 29/07/2011 yourself.

Please share your individual experiences here, please describe it in details. May be you have much better points to improve this system.

Here is the indicator for this strategy. Setting it is your own responsibility. The indicator has the capacity of improving the strategy if you want to do so. Just try watching 240 minute charts, I bet you’ll be totally surprised!

Here is the link:
http://myforexforums.com/upload/do.php?id=1010

This is the first week result of the strategy on EUR/AUD: 315 pips!

About the stop loss

There are 2 rules:

1. The EMAs command conversely.
2. RSI hits the 50 level after the trader gets into the trade.

Generally, 95% of all issued signals in this strategy have ended in profit, and then the trend either continued or reversed.

You can lower the volume of a position upon reaching a profit of 30 pips, thereafter if the trend continues, just keep watching for the remaining part of the trade, and even if the trend reverses, you have 30 pips room not to take any loss at all.

The best way to do this is to enter the market with double the volume you are going to take as position. This way your profit won’t be lowered and no loss will come to you.

The other way is using “Trailing Stop”. This way the poor trends will be eliminated with no loss and you will be able to hunt strong trends completely as well.
This is the best performance I know!

[sichone]

Moving Average is the common indicator for all traders, and I agree that buy using EMA, we can be easy to read the moving price, to enter short or long in a forex trading activity. I my self use SMA 10 and SMA 15. When the SMA 10 crosses the SMA 15 from below, I will open buy and so forth I will open sell if I see that SMA10 crosses SMA 15 from the upper. I combine this with RSI 14.

[stream1981]

///---\\\ What do you think of this strategy? ///---\\\
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[PCMNewsdesk]

Dear Stream1981,

First I need to thank you for sharing what is called a trading strategy of yours (or maybe sth. modified by you to fit your rules!)

There are some points to be told rather than just saying good things about the system. this way the strategy will show its errors automatically.

First, you have to fully explain the system. The most important factor is “how and when to exit” out of a trade, otherwise, most of them have no difficulty to enter a trend. The right and on time “exit” is equally important.

Let’s just talk about target and stop loss which founder of the strategy has suggested, please leave the remaining part for the next steps to come in.

Strategies based on fast moving averages (MAs) have usually good results; their weak point is when the market enters side way.

Please tell the whole story, and then other guys will have definitely things to add and ask about.

Do not be in a hurry at all!

There is time for everything!

[stream1981]

Hi every one!

I'm here again and the following is why I'm here:

The trade I have opened made 375 pips as profit since opening. Also 2 other pairs which I have introduced have made 276 and 250 pips as profit. It means this strategy has totally made 896 pips on just 3 pairs.
It’s easy to calculate that we are able to double our money engaging minimum risk.

[PCMNewsdesk]

Dear Stream;
Where have you been my friend?
Long time no see!

Good to have you here again man!

I think of the exiting rules as follows: (I may be in a wrong side but I think this way at least)
Exiting step by step the way you explained ends to loss in a long run. Doubling the risk is against the first and the most important rule of the market.
Leave your fears! The system is good itself. The important point is which market is this strategy build for, Options? , Stocks? , Commodities? , Or the Foreign Exchange market (Forex)?
According to 240 minute time frame, I think it should have been designed for the Forex market.
I think it is better not to change the main structure of the strategy at all, if it has been planned and introduced by Ms. Kathy Lein with the same Enter/Exit roles.
You have now a good strategy. Currently you need to focus on the money management, psychological management and training on your concentration and skills.
Trading on higher time frames needs a really important factor, “Patience”. All these time frames are good for ones who have realistic view to the financial markets’ potential return.

[jaylanank]

still confused to apply this indicator, but I try to use this indicator, if there is a repaint of this indicator and its matching pair used in anything, whether it is suitable for use in pair eurusd just beg explanation. thanks for sharing its indicator

[stream1981]

Hi Guys!

I was really busy with some important chores while i had to manage my time to come here.
anyway, I hope you, my kind friends accept my apologize for the delay.

OK! Lets get back to work;

Adding to the explanation that our friend has been providing on doubling the volume.
Two times volume is just for the very first 30 pips and upon reaching the profit, half of the position should be liquidated (closed out) letting the trade continue with the remaining volume.
When I introduced this system, suitable pairs have been offered too, but I haven’t tested this strategy on stocks, options and so on……!
I have done a two years back test on the system via AUD/CHF. The results were wonderful. Because these kinds of pairs have low volatility and long lasting trends.
This strategy had great returns on 240 minute and daily time frames.

***I hope the answer was good enough to cover your doubts/questions***

[samibaba]

what is the Best strategy in the whole world anyone Explain it ?

[samibaba]

Stream 1981 trade i think is a best analysis