IMPORTANT UPDATE : I DO NOT SELL ANYTHING ON FF FORUM. I DONT KNOW WHY I AM CONSIDERED AS COMMERCIAL MEMBER DEALING WITH COMMERCIAL CONTENT BUT I RESPECT THE DECISION OF THE ADMINS. ANYWAY, ALL EXPLANATIONS HERE ARE COMPLETELY FREE !
Hello! I am a FF member for many years noow but I never posted a thread or only one started but avorted because it was a little bit similar to ichimoku360, and I didnt want to confuse anybody.
So, firstable, I am a trader whose the first question is how I can limit the risk? So my system is developped with this bias.I prefer to be flat than in a bad trade. I prefer to trade the trend than countertrend trading. So maybe the system will not suit your personnality, so feel free to get away or to criticize in order to improve it not to destroy it.
The ideas behind this system is simplicity, low risk, identify the trend. So, about simplicity I will use simple indicators everyone can understand : it means price action / MAs / Oscillator
The system can be used in any TF and currencies. But hte longer is the TF, the more reliable it is as it reduce the risks of false signals. Also, according to the pairs you will trade, MM will be different because of volatility.
So here is the system :
Guppy MAs : ST (3/5/8/10/12/15) LT (30/35/40/45/50/55 instead of 60 because it is a Fib number)
Oscillator : Use one you master -> I use Slow Stochastics (5/3/3) or RSI (9) but it tells you the same thing, overbought oor oversold.
Price Action : look at candlesticks patterns in Google or search in the forum if you dont know.
TimeFrame (TF) : Use the one which suits your personnality and your balance account -
The rules :
1/ Identify the trend if there is one : we will use the MAs (ST>LT and pointing up then Bullish - ST<LT and pointing down then bearish - LT flat then no trend)
2/ If the trend is bullish you will only go long. Then wait for compression of ST MAs and Oscillator in oversold zone - the best is when you get a candlestick pattern such as a hammer. In this case, you can enter with a tight stop (depends on the pair and the TF) and let your profits run away. Reverse for Shorts (Trend bearish, etc....).
3/ If there is no trend, then you will trade with oscillator : Sell when you are in the overbought zone and buy when you are in the oversold zone. Also draw your support and resistance lines because after few volatility, high volatility will come and so a new trend will start, and then you will change the way you trade (go to the first point)
4/ Exits could be different according to many things : if you trade on short TF maybe you expect to get a fixed amount of pips, but if you trade on longer TF you should let your profits run until the market is giving you a sign of reversal. It can be a divergence on the oscillator, a candlestick pattern, or simply a cross of the LT MAs by the price. In any case, be careful when you reach round numbers, and when there is a divergence on the oscillator. You can also exit when your oscillator is in the overbought (long) or oversold (short) zone and wait for a retracement to re-enter again and again until the trend is over. I insist : it depends on your personnality.
As every systems....it will fail ! But as you can put tight stop, you can often lose while your profit will grow your account. Be very strict on MM ! Personnally, I put a stop as tight as 5 pips on 1mn TF for scalping and get 12 pips profit. So the W/L ratio is around 2:1. So if the rate of success is over 50% (and sure it is if you follow the rules), your account will grow up !
I will post charts later, but feel free to give a feedback and to rate the system !
Hello! I am a FF member for many years noow but I never posted a thread or only one started but avorted because it was a little bit similar to ichimoku360, and I didnt want to confuse anybody.
So, firstable, I am a trader whose the first question is how I can limit the risk? So my system is developped with this bias.I prefer to be flat than in a bad trade. I prefer to trade the trend than countertrend trading. So maybe the system will not suit your personnality, so feel free to get away or to criticize in order to improve it not to destroy it.
The ideas behind this system is simplicity, low risk, identify the trend. So, about simplicity I will use simple indicators everyone can understand : it means price action / MAs / Oscillator
The system can be used in any TF and currencies. But hte longer is the TF, the more reliable it is as it reduce the risks of false signals. Also, according to the pairs you will trade, MM will be different because of volatility.
So here is the system :
Guppy MAs : ST (3/5/8/10/12/15) LT (30/35/40/45/50/55 instead of 60 because it is a Fib number)
Oscillator : Use one you master -> I use Slow Stochastics (5/3/3) or RSI (9) but it tells you the same thing, overbought oor oversold.
Price Action : look at candlesticks patterns in Google or search in the forum if you dont know.
TimeFrame (TF) : Use the one which suits your personnality and your balance account -
The rules :
1/ Identify the trend if there is one : we will use the MAs (ST>LT and pointing up then Bullish - ST<LT and pointing down then bearish - LT flat then no trend)
2/ If the trend is bullish you will only go long. Then wait for compression of ST MAs and Oscillator in oversold zone - the best is when you get a candlestick pattern such as a hammer. In this case, you can enter with a tight stop (depends on the pair and the TF) and let your profits run away. Reverse for Shorts (Trend bearish, etc....).
3/ If there is no trend, then you will trade with oscillator : Sell when you are in the overbought zone and buy when you are in the oversold zone. Also draw your support and resistance lines because after few volatility, high volatility will come and so a new trend will start, and then you will change the way you trade (go to the first point)
4/ Exits could be different according to many things : if you trade on short TF maybe you expect to get a fixed amount of pips, but if you trade on longer TF you should let your profits run until the market is giving you a sign of reversal. It can be a divergence on the oscillator, a candlestick pattern, or simply a cross of the LT MAs by the price. In any case, be careful when you reach round numbers, and when there is a divergence on the oscillator. You can also exit when your oscillator is in the overbought (long) or oversold (short) zone and wait for a retracement to re-enter again and again until the trend is over. I insist : it depends on your personnality.
As every systems....it will fail ! But as you can put tight stop, you can often lose while your profit will grow your account. Be very strict on MM ! Personnally, I put a stop as tight as 5 pips on 1mn TF for scalping and get 12 pips profit. So the W/L ratio is around 2:1. So if the rate of success is over 50% (and sure it is if you follow the rules), your account will grow up !
I will post charts later, but feel free to give a feedback and to rate the system !