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

5M G/U System

Discussion in 'Forex Trading Systems and Strategies' started by sterling suhr, Apr 1, 2009.

  1. sterling suhr

    sterling suhr Recruit

    Joined:
    Oct 3, 2007
    Messages:
    7
    Likes Received:
    0
    Skype:
    Ok guys everynight I will be running a Skype room instead of trying to trade live in here. I will still answer questions in here but will be taking trades live in the Skype room. So if you like go to Skype.com and download it, its free. Then look for Sterling Suhr, and you have to select United States in the search options. Another way to find me on there is my Skype username which is sterling.suhr Send me a message and I will add you to my contacts and then I will add you to the forex group. If you have any questions about that feel free to PM me or ask in the room, either way. Skype official website – download Skype free now for free calls and internet calls The trade record keep below will be based on trades taken in the room given by me with exact entries, exits, and stops according to the system. As I said in the rules some parts of this system just arnt mechanical so some of the results may not be based on mechanical trading of the systems rules. Any changes I make are very simple and you will catch on fast in the room.I also wanna make it clear that this is the room for learning the system and its rules. Trying to learn the system in the room only clutters the already fast passed trading in the room. So learn the basics here and see it applied in the room.


    Pips:
    Im going to be keeping a running tally of the pips for this system. Right now we are +138 pips for the month of April. Took about a week off as well.



    Preface:
    The rules to this system are similar to the 4H system so if you understand the jist of that system you will have no problem understanding this one. It might benifit you if you have not looked at that to give that a look first and have a basic understanding of the 4H rules first. Using a smaller timeframe requires a lot more skill and knowledge so understand and demo this first before jumping in. As with my other system many many months went into testing this and fine tuning it and it is much more profitable and has a 1/10 of the drawdown of my other system. I hope you guys enjoy the system and as with the 4H I am open to suggestions on the rules and or wording of the rules I have posted.

    Entry:
    1) First thing you need to do is put a 60 EMA on a 5M chart of the G/U. I only trade the G/U with this system and would like the main focus of this thread to be about the G/U.

    2) If price is below the 60 EMA you are only looking for sells and if price is above the 60 EMA you are only looking for buys. Price can however come down and touch and even break it a little and still be concidered for a buy. Now if it comes down and completly breaks it and then goes back up and hits it you would look for a sell. This will be easier to explain and for you to see once I post some charts.

    3) You only take a trade after 2AM Eastern and only take a trade up until 3:30AM Eastern.

    4) For a buy: Price is above the EMA and is coming down. Each bar that makes a lower low is the new setup bar. The trade is triggered when the next bar breaks the setup bars high buy 3 pips. For a sell it is the opposite.

    Trade Managment and Exits:
    1) When you hit 10 pips profit you set the stop to BE. Sometimes I set the stop when I hit 8 pips profit it just depends. I, like the 4H system, tried to make this as mechanical as possable but there are a few areas that I deviate on and that is up to you and you will learn in time what your prefrences are. In addition I also usually set my stop at 20 pips profit once the trade is 30 to 35 pips in profit. The more and more I trade the more I have come to realize that the market is more than happy to give you 20 pips here and 30 pips there, but 100 pip TP's without huge stops just dont happen very often in this very choppy market. Slow and steady with low drawdowns is the way to go. Once you realize this your over all % gains at the end of the month will be much higher.

    2) Take half profit at 20 pips and exit the remaining half when you get a signal to go the other way. As an example you are in a buy. Price continues to make higher highs and higher lows, when price breaks the low of the last bar by 3 pips you would exit the remaining half with whatever profit you have. Unlike the 4H system you dont go the opposite direction you just want for another buy setup as long as price stays above the 60 EMA. If price breaks threw the 60 EMA and then sets up to go short you would go short.

    3) I usually only take 2-3 trades a day if they present themselves, sometimes you dont get a trade but this is very very rare and everyday will be different. If I have had 2 sucessful trades I will usually call it a night. Were playing the odds here and ass you have one good trade after another the probability of a losing trade becomes higher. In addition to that 20-40 pips a day is not bad by any means and with the low drawdowns and the higher leverage you can use that translates into a lot of money.

    4) If the price keeps going back and forth in a fairly tight range around the EMA I will usually take all buy and sell signals until it breaks out. As I already said I tried to make it as mechanical as possable but there are a few things that take a little practice and time to get used.

    Other:
    In general if there is something that needs to be added to the rules I would be more than happy to do that. Any and all suggestions should be PM'd to me so as not to be missed in all the other comments in the thread. Thanks for the help and support.

    -Sterling


    Above is my post from where I originally posted the system...I thought I would share it here as well. Im not to familiar with this forum but I will post charts here in a day or so. Hope this thread will be of some benifit.
     
    #1 sterling suhr, Apr 1, 2009
    Last edited: May 3, 2009
  2. sterling suhr

    sterling suhr Recruit

    Joined:
    Oct 3, 2007
    Messages:
    7
    Likes Received:
    0
    Here a chart I had that really illustrates the system well. No I didnt hand selet a day, this system works almost daily and it works very well.

    Trade #1 - Is right after 2AM Eastern when we start trading and price had broken below the 60 EMA so were only taking sells at this point. The blue arrow is the setup bar and the red is the reversal bar that triggers the short. I usually TP at 30-40 pips which was the case on this one.


    Trade #2 - The market does not break the high of the last 5 minute bar all the way down until this area. So as the market continues to make higher highs on this small correction we continue to move are sell order 3 pips below the low of the last 5M bar until the trade is triggered. This one hit +10 pips and then stopped us out at BE.

    Trade #3 - Very similar to trade #2 the trade was then triggered and we took +30 on this one.

    This really illustrates the potential of this system....your moving the stop to BE fast so as to protect profits and also taking profits fast while still making good money. The key to this market is low drawdowns and this system has drawdowns in the range of 100 pips at worst. We have a Skype room where you can see me trade this system live everyday as explained in the first post. However this is the room where the questions and the learning of the system should take place.

    -Sterling
     

    Attached Files:

    • gu.
      gu.jpg
      File size:
      336.5 KB
      Views:
      59
  3. sftrader

    sftrader Recruit

    Joined:
    Apr 9, 2009
    Messages:
    3
    Likes Received:
    0
    Trade only between times stated?

    Hi sterling suhr,

    Just to check, are we to trade this system after 2am Eastern till 3.30am Eastern only? After 3.30am Eastern it doesn't work?
    Can I also ask what will be the equivalent times in GMT? because I'm not sure if there is still daylight saving now.
    Thank you!

    sftrader :)

     
  4. sterling suhr

    sterling suhr Recruit

    Joined:
    Oct 3, 2007
    Messages:
    7
    Likes Received:
    0
    London is 4 hours ahead of Eastern time. So when its 8AM in London its 4AM East Coast time. The reason I selected that time is because it provides the best one way price action as comapred to the rest of the day IMO. When it goes down each bar usually dosent break the high of the last bar, when it turns to retrace each bar dosent break the low of the last bar until the retracement is done. If it does it usually gives you enough pips before you get a exit signal. Now does this happen everyday on every up or down move, well no of course not. But of all the times you could trade I believe its the most consistant. The last week and a half have been a tad rough with London being very choppy. Right now for APril were -25 pips. Thats very rare and as I said in the Skype room I havent had a negative month in 8 months which is when I started with this system, so I dont think its gonna start now. Hope to see you in here and the room:)

    Another point to mention is the drawdowns. Admitidly this last week has sucked but were only down -25 pips with the worst drawdown floating being only -75 pips. I think thats what makes this so profitable...when your down you dont have to cover a bunch of pips to be back....all you really need is a good day or two to cover the worst of the drawdowns. Most system including my 4H system on FF have much higher drawdowns which not only make for sleepless night but also make it much harder and takes longer to make it back.

    -Sterling
     
  5. sterling suhr

    sterling suhr Recruit

    Joined:
    Oct 3, 2007
    Messages:
    7
    Likes Received:
    0
    I took half of last week off in the room I wasent feeling good. We were back in the room on Friday and took +20 pips in about 1 hour. Slow and consistant is the way to profits in this market, along with very low drawdowns. Speaking of drawdowns we had at the very worst a -5 pip floating drawdown on Friday. Hope to see you guys in the Skype room and this forum. As I said in the first post I trade the 5M system live in the Skype room and teach it here. Not that I dont answer question there as well but this is the place to learn the basics of the system.

    -Sterling
     
  6. sterling suhr

    sterling suhr Recruit

    Joined:
    Oct 3, 2007
    Messages:
    7
    Likes Received:
    0
    Last month....

    We had a pretty slow month in April....only +138 pips in the room. That is really only for about 3 weeks of trading tho. Also in the beginning I was just taking every trade so as to teach the system....now im only taking the ones I like which is what makes this system much more profitable....the human aspect I mentioned in the first post. I think watching it live is the best way to learn it. Another point to mention was the worst drawdown for the month, which was only -60 pips. Most systems have stops on a signle trade this big! This is a pretty standard drawdown for any givin month and we should start to see an average of +400 pips or more in the coming months.

    Sorry about last week and me not being in the room but only two nights...really only one actually. I was sick last week and I was helping a buddy with some work he needed help with during the week and that didnt help me feel any better. Thats done now and im feeling better so trading will start as normal this Monday at 2AM Eastern. See you guys then and have a great weekend!

    -Sterling
     

Share This Page