Looking for a simple rules based system.....

[Edinburgh Trader]

Guys,
I'm hoping you can help.
I tend to trade price action set ups (with varying degrees of success)
I've rejigged my work commitments so I have more time to dedicate to trading and I'm looking for a simple, rules based system.
Buy when rsi crosses 50 and this is doing that. You know the kind of thing.
If anyone can point me in the right direction I'd really appreciate it.

Thanks

 

[malaguti]

Guys,
I'm hoping you can help.
I tend to trade price action set ups (with varying degrees of success)
I've rejigged my work commitments so I have more time to dedicate to trading and I'm looking for a simple, rules based system.
Buy when rsi crosses 50 and this is doing that. You know the kind of thing.
If anyone can point me in the right direction I'd really appreciate it.

Thanks

would you not consider buy when the trend is up, and sell when the trend is down?
possibly take profit when the trend stalls...

 

[drtro]

You're never going to beat the market trading this indicator crossover or that indicator crossover. You should take the time to learn how the market operates, instead of relying on an indicator for "signals"

Buying higher lows and selling lower highs and taking profit when it stalls like @malaguti says will do you far more good. Making money is all about risk management. You have to aim for targets larger than your stops, and you have to understand technical analysis and important levels to know where to place stops. It's so stupid to use a 10% stop when you just bought support and could have just put your stop a few ticks below the support, which would confirm it broke and you should get out then.

It's all stuff you learn with experience. There's no book, guide, or training course that makes you successful. You can read all the books and take all the classes at the YMCA you want on how to throw a football, but none of that will make you the next Tom Brady, yet alone a professional Quarterback.

 

[Splitlink]

It's so stupid to use a 10% stop when you just bought support and could have just put your stop a few ticks below the support, which would confirm it broke and you should get out then.

The reason that people do that is because they do not expect the market to go there and they do not have the patience to wait.

I have seen the market "go there" time and time again. It goes there because that is where the stops are, usually., and stops getting triggered means profit for the market.

Whether it will carry on , or reverse, is something new for the trader to worry about and there is nothing simple about it.

 

[Pat494]

The answer ET to your problem and for that matter many others too is not to try and make your own simple indicators, unless your IQ is 150+, but to splash out a bit of money on a system that works.

 

[Edinburgh Trader]

Never test my IQ, but I'm sure its average on a good day!

As for splashing out on a system that works.......ive heard nothing but negative things about buying systems. Perhaps you can recommend one to take a look at?

I'm not looking for a short cut, more a place to start I guess.

 

[malaguti]

Never test my IQ, but I'm sure its average on a good day!

As for splashing out on a system that works.......ive heard nothing but negative things about buying systems. Perhaps you can recommend one to take a look at?

I'm not looking for a short cut, more a place to start I guess.

Start with the trend...
Really, if you can get that right you can then determine for yourself what indicators support that.
Let me put this another way. A macd crossing in the direction of the higher timeframe. Not bad, but macd doesn't consider the trend. There said it again, trend
Macd crossing in the direction of the higher time and in the direction of the trend is a starting point
Now, go back to the trend..how you going to define that?
Get that right, you don't need the macd anymore
Don't worry, you'll likely ignore this go back searching for a system and then come back full circle in a few years

 

[counter_violent]

Guys,
I'm hoping you can help.
I tend to trade price action set ups (with varying degrees of success)
I've rejigged my work commitments so I have more time to dedicate to trading and I'm looking for a simple, rules based system.
Buy when rsi crosses 50 and this is doing that. You know the kind of thing.
If anyone can point me in the right direction I'd really appreciate it.

Thanks

The problem is always the same, it's to do with this nonsensical idea that trading is all about timing the markets weather using indicators or not. The truth is that you can put any number of trade runs together eg: WWLWL , WWWWL, LWLLL. and the emotional response will be different in each case, which then leads traders into the chop and change never ending circle of destruction.

No matter what system you decide to build, the only way to test it is by consistently sticking to your rules. Once you have a decent sample size to work with, you may find that you can modify the system and test again. You don't need fancy software and a masters in computing to do any of this. What you will need is time to develop the system and evaluate the results. All of this can be done manually.

 

[tar]

RSI crossover will chop you to death ... a lower RSI doesn't necessarily = lower prices .

 

[Edinburgh Trader]

Thanks for the replies guys. Much appreciated

 

[0007]

No matter what system you decide to build, the only way to test it is by consistently sticking to your rules. Once you have a decent sample size to work with, you may find that you can modify the system and test again. You don't need fancy software and a masters in computing to do any of this. What you will need is time to develop the system and evaluate the results. All of this can be done manually.

Excellent advice at no cost!

 

[Pat494]

Excellent advice at no cost!

Really ?
What if the rules are no good ?

 

[Atilla]

Really ?
What if the rules are no good ?

Get an act of parliament to change the rules. :idea:

Don't forget to seek approval from EU first :cheesy:

 

[Lightning McQueen]

missing mt4 indies

the op may possibly have been interested in the mt4 system posted early this morning, I say may, as it all looks rather too complicated for it's own good and not sure what to do with it now I've loaded it. and now there's nowhere to post questions as to what I'm looking at

I'm guessing it was a commercial indie and did not belong to the poster?

 

[counter_violent]

Get an act of parliament to change the rules. :idea:

Don't forget to seek approval from EU first :cheesy:

They will be fine with it as long as they get their 10%

 

[0007]

Really ?
What if the rules are no good ?

Isn't that why the advice is to "evaluate" the results? But you're quite right - rubbish rules are unlikely to succeed. At least with a consistent set of rules, one variable becomes a constant.

 

[NVP]

Guys,
I'm hoping you can help.
I tend to trade price action set ups (with varying degrees of success)
I've rejigged my work commitments so I have more time to dedicate to trading and I'm looking for a simple, rules based system.
Buy when rsi crosses 50 and this is doing that. You know the kind of thing.
If anyone can point me in the right direction I'd really appreciate it.

Thanks

Hey ET

unfortunately in trading (as in life) ............people can make things complicated pretty quickly

I would recommend to parallel trade a lot of strategies until you find something that fits your style ....

the markets are pretty straightforward most of the time - trend / range / trend / range .................its humans that complicate things

N

 

[ffsear]

Guys,
I'm hoping you can help.
I tend to trade price action set ups (with varying degrees of success)
I've rejigged my work commitments so I have more time to dedicate to trading and I'm looking for a simple, rules based system.
Buy when rsi crosses 50 and this is doing that. You know the kind of thing.
If anyone can point me in the right direction I'd really appreciate it.

Thanks

Set RSI to 14 on a 1 minute chart.

Plot significant S/R levels that you see.

Wait for price to enter RSI oversold (-30) or bought (+70) areas

If chart shows an outswinging pin bar within the RSI zones, that also insects one of your s/r lines then this is your entry signal.

Buy/Sell on the break of the pin.

Stop loss just above/below the tail of the pin.

Take 10 pips profit on trade until you have reach 20 pips for the day.
Once over 20 pips for the day, start moving stop losses to break even and try to pick some runners.



Simple, boring, but work with good risk management and discipline.

 

[pristine]

It's best to establish your own system for determining these trends, however you might have more luck if you look at moving average crossovers working together with RSI. The engulfing bar strategy has also been interesting to look at recently