Baruch's Forex System Journal

Jetheat · May 11, 2004

I tried this system on pairs other than USD pairing and lost on all counts coz prices came back and tested the MA thereby taking me out.

I suppose Euro, GBP and JPY are the only ones you can trade with this system.

How would you use a momentum indicator for signals? How does it work and with what period?

Baruch · May 11, 2004

What a shame. But a trend-following system needs trends - but this system should catch all the big moves.

Momentum: 55 on a 30 min chart. Buy when it goes north from below 40 - and sell when it goes south from over 60. Better than RSI, but not perfect.

Jetheat · May 12, 2004

My momentum scale ranges from -0.030 to +0.020.

How does the 40 and 60 fit in here? I have set it to 55 on a 30 min scale.

Thanks

Baruch · May 12, 2004

Quote from Jetheat:

My momentum scale ranges from -0.030 to +0.020.

How does the 40 and 60 fit in here? I have set it to 55 on a 30 min scale.

Thanks

Sorry, I was confusing it with RSI.

Baruch · May 12, 2004

Quote from Baruch:

Sorry, I was confusing it with RSI.

But I am only looking at momentum to see if it's over or below 0. I loves to sell when it comes down fra a real high - or buy whenit goes up from a deep low.

Jetheat · May 12, 2004

Since the momentum is hovering around zero at the moment, and the prices are fluctuating around the MA 50 also, do you buy / sell every single one of those crossovers if the momentum agrees by a small fraction?

Baruch · May 12, 2004

Quote from Jetheat:

Since the momentum is hovering around zero at the moment, and the prices are fluctuating around the MA 50 also, do you buy / sell every single one of those crossovers if the momentum agrees by a small fraction?

In a trending market - yes (because momentum can fool you).

In a trading range/flat market - no.

We must listen to the market.

Jetheat · May 12, 2004

I take it you still use the 10 pip filter and still place your stop loss at just below MA50 and still move the stop to break-even when 20 pips profit and still move stop loss to 10 pips above entry when in 30 pips profit.

Is this all still valid?

Baruch · May 12, 2004

Quote from Jetheat:

I take it you still use the 10 pip filter and still place your stop loss at just below MA50 and still move the stop to break-even when 20 pips profit and still move stop loss to 10 pips above entry when in 30 pips profit.

Is this all still valid?

Yes - but depending on the market. When the market moves very fast I don't use the filter.

Jetheat · May 12, 2004

Quote from Baruch:

Yes - but depending on the market. When the market moves very fast I don't use the filter.

How do you know when its moving fast?
At the moment, it has small candles or bars but you never know when its gonna make a huge spike and drop like a rock just like it did earlier. So what makes you decide that the current market is either a trending one or a sideways one or a fast market or a slow market?