I've been experimenting with a daily system the past few months. Still not quite happy with exit strategy, but here are the rules so far:
Indicators:
ASC Trend
Volatility Quality (VQ)
NoLagMA
Aroon Up & Down
Long entry:- ASC Trend is Blue.
- NoLagMA is yellow (after a period of red) or blue.
- Bar opens above NoLagMA.
- Aroon blue is above red.
- VQ is green.
Short entry:- ASC Trend is Red.
- NoLagMA is yellow (after a period of blue) or red.
- Bar opens below NoLagMA.
- Aroon red is above blue.
- VQ is red.
Notes:- Use D1 charts on all pairs. Need different values of NoLagMA for each pair.
- Initial stop is placed below the NoLagMA of the previous (full) bar.
- After a few days possibly draw the trendline and use this as the stop.
- Use the the previous day's NoLagMA value as the stop.
- Don't enter late into a trade. It's too late – wait for the next trade.
- The example below if for USDCHF over about two months. Usually only 2-4 trades per pair per month. Trade on all pairs as diversification works well. Avoid USD trades during NFP week as usually not much movement.
I've only used daily charts as this suits my lifestyle. 0 GMT is around lunchtime here in New Zealand. So I only need to check the charts once a day and place any trades and/or adjust stops, then leave it until the following day. Only takes a few minutes. I used an interbankfx demo but interbankfx seem to have an extra 'daily' bar lasting one hour every Monday. This extra bar can mess up the indicators. Anyone know if this can be turned off? Anyway I'm now using a northfinance demo for further testing.
Another idea I'm toying with is entering two trades with one having a TP of around 50pips. Both follow the same stops.
I also play with the NoLagMA.Length for each pair. For example I've found that a value of 16 works well for GBPUSD. I'm also looking at using the ASC Trend on a weekly chart to determine the long term trend, and only trade in this direction.
Attached is a statement for January 2007, the indicators (sourced from this forum) and an example image. Note that even though the net profit is only $73.36, this was done on a micro account representing 766 pips, including spread.
I'd be grateful for any suggestions for improvement.