EMA/RSI Trend Spotter system
I discovered this indicator a while ago and started playing around with it and it seems to be very profitable. I want to be able to program an EA (I'm sure it will be relatively easy for a good programmer).
This indicator combines the crossover of EMA and RSI and seems to have some advantages. When the appropriate conditions are met, the arrow will point up to indicate a long position and the arrow pointing down to indicate a short position (enter at COB).
To make it a trading system, I attached the 110 and 100 EMAs to the chart and used them as trailing stops. If the price falls back to that point, it will close the position. Sometimes it will let you break even, or you will suffer a small loss (like 10-15 pips), but often, it will catch the big swings and even when it retraces, you will gain a lot of pips (depending on the time frame - 1000-2000 pips on the daily chart, all the way up to the M5 chart - 20-100 pips).
There is no target price as a trailing stop will take you out of the trade. If you are satisfied with a certain R:R, then you can take profits at that point. Many times, you will keep more profits this way, but if you do, you will miss out on huge moves.
Stop loss can be the previous swing low, or the maximum you are willing to risk. For example, on M5 TF, my maximum stop loss is 30 pips.
Let me know what you guys think and if you have any suggestions for improvements. Also, being such a simple mechanical system, I think the EA will be very helpful in catching moves (I like trading smaller TFs). It would be great if anyone could help resolve this issue. If I need clarification more, please ask!
Attachment: indicator settings from top to bottom 100, 110, 50
This indicator combines the crossover of EMA and RSI and seems to have some advantages. When the appropriate conditions are met, the arrow will point up to indicate a long position and the arrow pointing down to indicate a short position (enter at COB).
To make it a trading system, I attached the 110 and 100 EMAs to the chart and used them as trailing stops. If the price falls back to that point, it will close the position. Sometimes it will let you break even, or you will suffer a small loss (like 10-15 pips), but often, it will catch the big swings and even when it retraces, you will gain a lot of pips (depending on the time frame - 1000-2000 pips on the daily chart, all the way up to the M5 chart - 20-100 pips).
There is no target price as a trailing stop will take you out of the trade. If you are satisfied with a certain R:R, then you can take profits at that point. Many times, you will keep more profits this way, but if you do, you will miss out on huge moves.
Stop loss can be the previous swing low, or the maximum you are willing to risk. For example, on M5 TF, my maximum stop loss is 30 pips.
Let me know what you guys think and if you have any suggestions for improvements. Also, being such a simple mechanical system, I think the EA will be very helpful in catching moves (I like trading smaller TFs). It would be great if anyone could help resolve this issue. If I need clarification more, please ask!
Attachment: indicator settings from top to bottom 100, 110, 50
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