Friday, January 12, 2007

Profitable Sidus Method

I started to adapt the systems with my onw rules. The biggest advantage of the Sidus method is that it is not necessary for adding extra filters. Whipsaws will occor, but less frequent. This system made my trading very profitable as it easy to understand, easy to implement and easy tofind the right entry-points.

Profitable Sidus Method



What do you need?
- 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 8 WMA (in yellow)

The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the startof a trend and the end of a trend (Long term).
The WMA & 8 WMA will show you when to enter a trend, they will also help you to see the strenght of the trends (Short term)

Entry Signals
You should only open a position, when the red tunnel is extremly narrow or crossed !
LONG: 5 WMA & 8 WMA cross the red tunnel upwards. If the 5 WMA also crosses the 8 WMA upwards, then the signal is extra strong.
SHORT: 5 WMA & 8 WMA cross the red tunnel downwards.If the 5 WMA also crosses the 8 WMA downwards, then the signal is extra strong.

Exit Signals
Signals that show the end of the chosen trend:
- Long: The price has reached a top and 5 WMA dives under 8 WMA (Close position)
- Short: The price has reached a bottom and 5 WMA jumps above 8 WMA (Close position)

Always close your position when boundry’s of the red tunnel cross eachother or when they become so narrow that they are one! This is a clear sign of a trend reversal. After you see this, close your position and open a new postion in the other way (If you were long, close, open a short postion)

When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention! As long as the redtunnel boundy’s doesn’t cross eachother there is no problem, but often this is a sign that they will!

Basic rule
Enter a position were the red tunnel boundry’s cross and exit that position when they cross again!!! Always use a stoploss - I recommend a 10-15 pip stoploss !!!

I want to thank Vegas, Bunnygirl and all the nice people of ForexFactory for their great inspiration.

By : Sidus

1 comment:

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