5EMA hilo system, and EA Idea (5EMA hilo system, and EA Idea)
First, I would like to thank Sterling for introducing me to the 5 Ma hilo channel system. I changed a few things, more for my style and comfort, and with less risk.
The idea is to place a 5 EMA high and a 5 EMA low on the chart for any time frame you want and this forms a channel. When price moves out of the channel, we look for candles that are completely or mostly outside the channel. I prefer small range candles and I won't enter a trade if the setup candle goes halfway into the channel...we need room for it to move. A breakout of this candle in the opposite direction triggers an entry. Stop loss is set 1 pip above or below the candle. Taking profits is discretionary, but usually at least the opposite channel is reached. If you trade against the trend, you can take full profits, and if you trade against the trend, you can take partial profits with your stop loss set to breakeven. Stay in the trade as long as the candle moves in the profitable direction, and once a reverse candle or setup is formed, close the trade and reverse with the appropriate signal. I look for follow-through and motivation. If after 2 or 3 bars you still have no profit, it might be a good idea to exit before the stop loss is reached. In most cases, you will see a follow-through to the next candle after your entry.
I have found that while not every trade is profitable, many trades are, especially when we look for candles outside of the mid-range at the top or bottom of a swing, preferably small range candles so our stop loss is smaller. Also, sometimes the system works well and sometimes not in extreme trends or narrow ranges, but I have this idea that someone with good coding skills and people's ideas about profitability can eventually write a profitable EA. Are there any takers? I'm not a coder yet, although I've always wanted to learn.
The idea is to place a 5 EMA high and a 5 EMA low on the chart for any time frame you want and this forms a channel. When price moves out of the channel, we look for candles that are completely or mostly outside the channel. I prefer small range candles and I won't enter a trade if the setup candle goes halfway into the channel...we need room for it to move. A breakout of this candle in the opposite direction triggers an entry. Stop loss is set 1 pip above or below the candle. Taking profits is discretionary, but usually at least the opposite channel is reached. If you trade against the trend, you can take full profits, and if you trade against the trend, you can take partial profits with your stop loss set to breakeven. Stay in the trade as long as the candle moves in the profitable direction, and once a reverse candle or setup is formed, close the trade and reverse with the appropriate signal. I look for follow-through and motivation. If after 2 or 3 bars you still have no profit, it might be a good idea to exit before the stop loss is reached. In most cases, you will see a follow-through to the next candle after your entry.
I have found that while not every trade is profitable, many trades are, especially when we look for candles outside of the mid-range at the top or bottom of a swing, preferably small range candles so our stop loss is smaller. Also, sometimes the system works well and sometimes not in extreme trends or narrow ranges, but I have this idea that someone with good coding skills and people's ideas about profitability can eventually write a profitable EA. Are there any takers? I'm not a coder yet, although I've always wanted to learn.
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