Hello,
Ok here's the system I have come up with. I have paper traded it and it has been successful over the past year for GBP/USD, GBP/JPY, USD/CHF, and CAD/JPY.
Buy Rules
1) Daily Charts with NO Indicators
2) If price has 3 consecutive days where the Close is higher than the Open, on the OPEN of the 4th candle, Initiate a Buy Order.
3) Stop is 2 pips below the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips
Sell Rules
1) Daily Charts with NO Indicators
2) If price has 3 consecutive days where the Close is lower than the Open, on the OPEN of the 4th candle, Initiate a Sell Order.
3) Stop is 2 pips above the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips
This is an easy system because it eliminates many factors that make the novice trader unsuccessful (overtrading, ignorance about how to effectively use indicators, etc.).
I found that MANY times the 30 pips was hit. The 100 pips take profit was hit but only about half the time. The key, however is to continue looking for a new setup once a trade has ended. What I mean by that is let's say that you enter a Buy trade and it is successful for 130 pips, and it continues heading up, YOU DO NOT RE-ENTER THE TRADE. You look for a completely new signal, which means that price needs to close Lower than it's open before you could look for a new signal to occur.
Out of the 4 pairs that I tested, GBP/JPY and GBP/USD had the best results (close to 1000 pips each for they year), followed by CAD/JPY with 600 pips, and then USD/CHF with 300 pips.
So if one pair is not setting up then another pair usually was.
Thanks for the help.
Ok here's the system I have come up with. I have paper traded it and it has been successful over the past year for GBP/USD, GBP/JPY, USD/CHF, and CAD/JPY.
Buy Rules
1) Daily Charts with NO Indicators
2) If price has 3 consecutive days where the Close is higher than the Open, on the OPEN of the 4th candle, Initiate a Buy Order.
3) Stop is 2 pips below the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips
Sell Rules
1) Daily Charts with NO Indicators
2) If price has 3 consecutive days where the Close is lower than the Open, on the OPEN of the 4th candle, Initiate a Sell Order.
3) Stop is 2 pips above the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips
This is an easy system because it eliminates many factors that make the novice trader unsuccessful (overtrading, ignorance about how to effectively use indicators, etc.).
I found that MANY times the 30 pips was hit. The 100 pips take profit was hit but only about half the time. The key, however is to continue looking for a new setup once a trade has ended. What I mean by that is let's say that you enter a Buy trade and it is successful for 130 pips, and it continues heading up, YOU DO NOT RE-ENTER THE TRADE. You look for a completely new signal, which means that price needs to close Lower than it's open before you could look for a new signal to occur.
Out of the 4 pairs that I tested, GBP/JPY and GBP/USD had the best results (close to 1000 pips each for they year), followed by CAD/JPY with 600 pips, and then USD/CHF with 300 pips.
So if one pair is not setting up then another pair usually was.
Thanks for the help.