1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Stochastic 15Min System - Highly profitable

Discussion in 'Trading Strategies & Systems' started by c0nundrum, Apr 16, 2009.

  1. c0nundrum

    c0nundrum New Member

    Apr 12, 2009
    Likes Received:
    Its a system I have recently developed, inspired by Jake Bernstein's great book, The Complete Day Trader. I changed a bit the stop loss and exit rules to make the profits run a bit more.
    I call it Stochastic OBOS, for Over-Bought-Over-Sold.. :)
    This is basically a trend following system, works well in trend phases. I sometimes filter the trades with Range Indicator to avoid ranging periods.

    Works best on GBPUSD\EURUSD\GBPJPY

    I use this system on 15M\1H\4H. Of course, If there are conflicting signals the higher timeframe wins...

    *Stochastic Oscillator (K%=10, D%=3, Slowing=3), remove the signal line (slowing) as you won't be using it here.
    *Awesome Oscillator

    Entry Rules
    Enter Long after Stochastic main line crosses 60 up.
    Enter Short after Stochastic main line crosses 40 down.
    Stop order is placed 1 pip above the high of the candle (for long), and 1 pip below the low of the candle (for short).

    Exit Rules
    Exit trade when Awesome Oscillator makes one bar in opposite direction of your trade. Explanation:
    If you are long and Awesome Oscillator creates a red bar - exit trade when the bar is closed.
    If you are short and Awesome Oscillator creates a green bar - exit when bar is closed.
    Just look at the pictures.. it doesn't really matter to be 100% precise in these exits, anyway the trends you'll catch are big enough so late exits won't hurt the profits too much.

    Money Management
    As usual I recommend not risking more than 2% of equity on a single trade.

    Visit THIS SITE for more Free Trading Systems and Indicators.




Similar Threads - Stochastic 15Min System
  1. MechXTrader

Share This Page