Forex Strategy Builder V 2.4.0.2
Strategy name: so easy system
Exported on: 14.4.2007 г. 09:31:24

Market: EURUSD 1 Day
Spread: 4 pips
Swap Number: 1 pip

Balance: 174 pips
Minimum account: -677 pips
Maximum drawdown: 865 pips
Time in position: 11 %

The same direction signal - does Nothing
The opposite direction signal - does Nothing

[Opening point of the position]
Bar Opening
     The market entry is at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
MA Oscillator
     The MA Oscillator crosses the Level line upward
     Smoothing method  -  Exponential
     Base price  -  Close
     Fast MA period  -  5
     Slow MA period  -  10
     Level  -  0
     Use previous bar value  -  Yes

[Opening logic condition]
Stochastics
     The Slow %D is lower than the Level line
     Smoothing method  -  Simple
     %K period  -  10
     Fast %D period  -  3
     Slow %D period  -  3
     Level  -  70
     Use previous bar value  -  Yes

[Opening logic condition]
Stochastics
     The Slow %D rises
     Smoothing method  -  Simple
     %K period  -  10
     Fast %D period  -  3
     Slow %D period  -  3
     Level  -  20
     Use previous bar value  -  Yes

[Opening logic condition]
RSI
     The RSI is higher than the Level line
     Smoothing method  -  Simple
     Base price  -  Close
     Smoothing period  -  14
     Level  -  50
     Use previous bar value  -  Yes

[Closing point of the position]
Trailing Stop
     Stop  -  -30

I'll explain the steps:

1. We set the market - EURUSD - 1Day

2. The Spread, Swap we can set according to our broker - in the example - 4pips spread, 1 pips roll-over fee

3. Entry point
   The entry point of this system is not specified. I'll use the most common entry - Open price

[Opening point of the position]
Bar Opening
     The market entry is at the beginning of the bar
     Base price  -  Open

4. Open logic conditions

  o The 5 EMA crosses above the 10 EMA

There are several ways to set this - see more here - post #2

[Opening logic condition]
MA Oscillator
     The MA Oscillator crosses the Level line upward
     Smoothing method  -  Exponential
     Base price  -  Close
     Fast MA period  -  5
     Slow MA period  -  10
     Level  -  0
     Use previous bar value  -  Yes

   o (do not enter if the stochastic lines are already in the overbought territory)
For the overbought level we can use 70

[Opening logic condition]
Stochastics
     The Slow %D is lower than the Level line
     Smoothing method  -  Simple
     %K period  -  10
     Fast %D period  -  3
     Slow %D period  -  3
     Level  -  70
     Use previous bar value  -  Yes

   o both stochastic lines are heading up

[Opening logic condition]
Stochastics
     The Slow %D rises
     Smoothing method  -  Simple
     %K period  -  10
     Fast %D period  -  3
     Slow %D period  -  3
     Level  -  20
     Use previous bar value  -  Yes

  This covers the %D lines only. To check both of them you have to use two filters (too complicated)

o RSI is greater than 50

[Opening logic condition]
RSI
     The RSI is higher than the Level line
     Smoothing method  -  Simple
     Base price  -  Close
     Smoothing period  -  14
     Level  -  50
     Use previous bar value  -  Yes

This are the entry conditions for the long positions. In FSB is not necessary to set the short logic. It mace this automatically.

5. Exit rules
   ? Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50

In FSB you can use a single exit rule. You can experiment:

   o Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade

[Closing point of the position]
Close and Reverse
     Close all positions and open a new one in the opposite direction

   o RSI crosses back to 50
In this case you can use a closing logic condition:

[Closing point of the position]
Bar Closing
     The market exit is at the end of the bar
     Base price  -  Close

[Closing logic condition]
RSI
     The RSI crosses the Level line downward
     Smoothing method  -  Simple
     Base price  -  Close
     Smoothing period  -  14
     Level  -  50
     Use previous bar value  -  No

   o I use here a trailing stop

[Closing point of the position]
Trailing Stop
     Stop  -  -30

This system looks too complicated.
There are too many parameters, that can be optimized and the strategy can show very high profit.
You can experiment with the logic and indicators to gain experience with them.

My ?So Easy It?s Ridiculous? System

In this section I will give you an idea of what a trading system should look like.  This should give you an idea of what you should be looking for when you develop your system.

Trading Setup
   ? Trade on daily chart (swing trading)
   ? 5 EMA applied to the close
   ? 10 EMA applied to the close
   ? Stochastic (10,3,3)
   ? RSI (14)

Trading Rules
   ?  Stop Loss = 30 pips
   ?  Entry Rules

1. Enter long if:
   o The 5 EMA crosses above the 10 EMA and both stochastic lines are heading up (do not enter if the stochastic lines are already in the overbought territory)
   o RSI is greater than 50

2. Enter short if:
   o The 5 EMA crosses below the 10 EMA and both stochastic lines are heading down AND (do not enter if the stochastic lines are already in oversold territory)
   o RSI is less than 50

Exit Rules
   ? Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50