Stop Being Wrong (Start Being Simple)

1 year ago
908

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This complete trading system is based on 4 Exponential Moving Averages (EMAs) and consists of simple entry and exit rules. The concepts from this strategy can be used to develop even more powerful trading systems by adding other indicators and/or additional rules.

In addition to reviewing the indicators, providing exact entry rules, defining the take profit and stop loss levels, testing it for 165 consecutive setups, reviewing the results, discussing the equity curve, and scoring the system on a scale of 1 to 10, I also share my 6 optimization tips that you can try in your own trading system development. Do not neglect back and forward testing, that is critical.

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🤖 The automated trading script is available for this strategy in the Trader’s Landing Community.

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🏠 System Web Page: https://traderslanding.net/2022/11/12/stop-being-wrong-start-being-simple/

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📘 Link to my free backtesting spreadsheet: https://traderslanding.net/2021/08/15/26/

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⏱️ Timestamps ​​⏱️
00:00 - Start
01:25 - Indicators
02:40 - Examples
06:11 - Results, Equity Curve, Score
07:24 - Optimization

⚙️ System Specifics ⚙️
📛 System Name: Four Lines to Profit
🏆 Trader’s Landing Score: 7
🎹 Instrument: Australian Dollar / US Dollar (AUD/USD)
⌛ Time Frame: 4-Hour (H4)

👀 TradingView Indicators
Links to indicators located here: https://traderslanding.net/indicators/

Name: 4 EMAs (21,50,100,200)
Inputs: EMA 1 = 25, EMA 2 = 50, EMA 3 = 100, EMA 4 = 200
Style: EMA 1 = Pink, EMA 2 = Aqua, EMA 3 = Orange, EMA 4 = White
By: herblock

☝️ Long Entry
1) 4 EMAs in order, 200 under 100, 100 under 50, 50 under 25.
2) Price trades above the 25 EMA for at least 8 candles.
3) Price moves below the 25 EMA.
4) Setup is canceled if it closes below the 100 EMA.
5) Enter when price closes above the 25 EMA.

👇 Short Entry
1) 4 EMAs in order, 200 over 100, 100 over 50, 50 over 25.
2) Price trades below the 25 EMA for at least 8 candles.
3) Price moves above the 25 EMA.
4) Setup is canceled if it closes above the 100 EMA.
5) Enter when price closes below the 25 EMA.

🔥 Risk to Reward: 1:2
🛑 Where to place stop-loss: 50 EMA
🚀 Where to take profits: 1:2
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⚠️Disclaimer: This content references opinion and is for information purposes only. Not intended to be investment advice.

Metatags
#StrategyReview #TradingSystem #EMAs

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