Hey everyone! I'm trading forex on TS, I scalped futures for 2 years but gave that up and now I'm using 1hr charts to position trade. I'd love to make some contacts on here, maybe talk to other forex traders who are using some of the same strategies.
I'm backtesting the hell out of everything I can find, but it's tough coming up with new ideas. I need to pick and choose from other strategies but don't know where to find them, so I'm basically just coming up with my own ideas from all the TA stuff I've read. I backtested EUR/USD today on this strategy and was hoping I could get some input from someone who knows something about the validity (or crappiness) of this system:
144 and 169 period emas on 1hr chart combined with 14 period RSI, overbought/oversold indicators set at 65 and 35. On an ema crossover to the upside, if there was an oversold signal in the previous 5 days, then buy 2 lots above 144 ema (must be the top ema) and set stop 20 pips below and profit target of 50 for 1st lot exit and the next lot either 100 pips profit or stop at crossover. Do the opposite for shorts.
I'm finding that this works absolutely phenomenal on some trades where I'll hit 100+ pip targets with zero risk, essentially getting in at the low. But with a tight stop, there are some whipsaws as well. I could go on and on and on and on about the different nuances of this, but I won't bother right now, I figure if anyone has experience with this style, then hopefully you'd be able to give me some feedback.
Any thoughts/suggestions would really be appreciated. Thanks!!!
how far back have you backtested?