Three Simple FX Trading Strategies

currinexfx · #2 (**permalink**) 05-04-2009, 10:22 AM

what are the MACD settings for that 2h MACD strategy?

60221366 · #3 (**permalink**) 05-04-2009, 12:32 PM

This is an observation to the presentation of MACD / 200 period moving average: movie position 7:15 minutes.

This observation has to do with the moving average showing a downtrend, or the price is below the moving average.

Note: If I don't edit the standard MACD colors, when the position is falling, the MACDA color is Blue, and the MACD color is Red.

In the presentation, I am advised to get out of the position when the red drops below the blue.

The video seems to have the MACD color as Blue, but the commentator is saying that it's Red: movie position 7:30 (listen to words, and compare to white text on screen).

Mark

Gavin Minnis · #4 (**permalink**) 05-04-2009, 01:18 PM

Quote:

Originally Posted by currinexfx

what are the MACD settings for that 2h MACD strategy?

Currinexfx,

The MACD settings used for this strategy were 12,26,9 (used MACD to keep things simple). As you continue working with the strategy you can also try swapping out the MACD with a slow stochastic (15,5,5). This is actually what I prefer to use in most cases as the slow stochastic tends to get me into the trade at better prices.

From my experience the MACD lags a bit in comparison. When I use the slow stochastic (15,5,5) I also make sure to only enter when the stochastic cross is above the 80% value or below the 20% value.

For clarification, if the currency pair is in a downtrend (look for sell signals) I look to sell on a stochastic cross above 80%. If the currency pair is in an uptrend (look for buying signals) I look to buy on a stochastic cross below the 20% value.

I hope this helps,

Gavin

Gavin Minnis · #5 (**permalink**) 05-04-2009, 01:25 PM

Quote:

Originally Posted by 60221366

This is an observation to the presentation of MACD / 200 period moving average: movie position 7:15 minutes.

This observation has to do with the moving average showing a downtrend, or the price is below the moving average.

Note: If I don't edit the standard MACD colors, when the position is falling, the MACDA color is Blue, and the MACD color is Red.

In the presentation, I am advised to get out of the position when the red drops below the blue.

The video seems to have the MACD color as Blue, but the commentator is saying that it's Red: movie position 7:30 (listen to words, and compare to white text on screen).

Mark

Mark,

You're observation about the colors is correct. By default, the MACD line is often colored red and the signal line blue. However, I've personally always used a blue MACD line and red signal line - just something that I'm personally more comfortable with.

I didn't realize that I had changed those settings when when I put this video together. However, everything I said in the video and the visuals (minus a slight change in colors) provided are still valid.

Sorry for the confusion,

Gavin

rnfx · #6 (**permalink**) 05-04-2009, 08:18 PM

Does strategy three (2h MACD Cross) work on Daily, H4, H1 charts or just work on H2 chart?
Thank you.

I personally use it on 2H charts simply because of the higher rate of success I've had with it. You're more than welcome to do a bit of testing on your own (I'd recommend a demo account) to see how the strategy works across other time frames. All strategies have room for modification, adjustment, etc.

- Gavin

zoglchaim · #7 (**permalink**) 05-13-2009, 06:41 PM

does inside day break out only works on day candles ?
could i apply this stategy on 4 hour 2 hour cadles and so on? tell me your experience please
also
do you compare a life candle to the on before it or 2 "dead" once
thanks

shazril · #8 (**permalink**) 06-07-2009, 03:04 PM

May I know where can I set for my SL? Is it along the 200 MA line?

Thanks.

phanna · #9 (**permalink**) 06-08-2009, 06:37 PM

I notice that you suggest placing both a BUY and a SELL in this strategy in order to "cover yourself". Apparently, this is not considered hedging - right? So that I can understand the difference, could you please define the parameters of hedging (which I understand is no longer allowed)?

shazril · #10 (**permalink**) 06-08-2009, 08:46 PM

Quote:

Originally Posted by phanna

I notice that you suggest placing both a BUY and a SELL in this strategy in order to "cover yourself". Apparently, this is not considered hedging - right? So that I can understand the difference, could you please define the parameters of hedging (which I understand is no longer allowed)?

Hedging is defined as taking a long and short position in the same currency pair in the same account in same time.

phanna · #11 (**permalink**) 06-16-2009, 12:09 PM

Quote:

Originally Posted by shazril

Hedging is defined as taking a long and short position in the same currency pair in the same account in same time.

The definition is correct, but a BUY and a SELL on the same pair has not worked for me.

shazril · #12 (**permalink**) 06-16-2009, 06:58 PM

Quote:

Originally Posted by phanna

The definition is correct, but a BUY and a SELL on the same pair has not worked for me.

In FXCM trading station, we are no longer to do hedging either real account or demo except you are in UK real account. That is why you cannot open your open position both direction in same pair and time too. You can see the setting under trading station account tab or properties. You can make entry in both direction but not open position in different direction.

Hopefully this answer would help.

sed34 · #13 (**permalink**) 09-01-2009, 12:16 AM

on the 2hr strategy the macd lags. I found better results using stochastics. 14,3,3 works great.

matfx · #14 (**permalink**) 09-04-2009, 11:08 AM

I do agree with sed34. The 14,3,3 Stochastic working greatly.

mika79 · #15 (**permalink**) 09-22-2009, 07:53 AM

Hi, I have just started trading forex with fxcm. Your strategy is very useful but I have some questions here.

For the 2-hour MACD strategy, I have found that for charts with shorter time frame (e.g. 5 minutes), it showed that the trend is going up whereby for the 2-hour chart, it shows that it is going down. Does it means that in the short term the price will go up whereby in the long term it will go down?

Thank you.