Hey guys. Decided to post my holy grail system. It is built on purposes.
1) 90% profitable entries
2) Avoiding losses. As I posted yesterday a 50% loss needs 100% to be covered. Small accounts are being wiped out because of that. It doesn't have to be 50% loss 100% return. Even if you lose 1% in a day you need to get 2%. So if you lose 1% here and there and you are not good on taking profit either you have lost before even started.
3) Profitable exits.
You can't know where prices will go but entries can be easy. Exits are important for an account to grow well and fast.
I like trading the news but not as they happen I prefer the aftermath. Let's say that the euro news are very good today. The euro went up 50 pips and droped. Now it will probably have an up moment if you enter at the right place.
You have to spot a 123 setup. That means we have the price starting from point 1 and forms a top on point 2. Then it forms a bottom on point 3 which is higher than point 1. We use stochastic and MACD to confirm tops and bottoms especially with stochastics and macd is also helpful. You but when the first candle closes higher from point 3. I usually trade with 30 minute frames and I look for the candle closure on 5 min or 15 min frames (15 is more of a sure thing). With one hour time frames you can check the breakout at 30 minute frames and so on.
I buy if the MACD is bullish and RSI is 50 and bigger. To take profit I use My fibonacci expansion. On 0,618 I sell 2% of my position to cover my fees (with stock or options). On 1,000% I sell 30% of my position and I close the whole position at 1,618%.
Stop loss depends on the leverage but it is just for slippage. I actually close the position if the breakout fails and the candle of the 15 minute frame closes lower than the breakout point. When I see the first candle closing above my 0,618 I put my stop loss 1 pip above the price I bought so if I lose at least I lose with profit. When the 1,00% fibonacci is closed with a candle higher I move my stop to the 0,618 level. If macd or stochastics show a top 1 or 2 pips below my fib I close my partial position earlier and wait for the next one.
The more candles before the breakout the better the breakout. If you're not news aftermath trader you can use it as reversal pattern so if you use it to go long you have to identify a previous short. If you wanna use it to go short you can do the opposite.
If the fibonacci expansions match previous fib expansions of other moves you are already in the move so your take profit will be the 161.8 of the previous fibonacci expansion.
Since it's working nearly always. I use 40% of my balance in every trade and with high margins.
Always be aware of support and resistance levels in the bigger time frames cause you may fall in the middle of a support or resistance war. Also be aware of the fibonacci retracements in the bigger time frames.
MACD is less important in sideways moving markets. Be aware of that.
THE BIGGEST TOOL YOU NEED FOR THAT IS DISCIPLINE.
This plan is about getting into SURE trades. ANY account to go huge doesn't need risky tactics for huge profits. You will see your account grow smaller every day with those tactics until it blows up. For an account to grow big you need wins sure trades. That's why I trade so defensive.
And another advice. Market making brokers suck. Virtual dealer plug ins suck. An ECN broker is not that expensive and sometimes its cheaper. An Stp broker is also a good Idea. Market makers are stop hunting sharks. That doesn't mean ECN or STP can't be sharks. Before using a broker check this site. I actually found about it some days ago looking for a broker and I thank god for it.
Forexpeacearmy is the site.
I posted my strategy here to make some last minute tweaks. I just got 18 and I have been backtesting strategies short and long term strategies till I was 14. Thank god I was forbidden to trade so all I could do is backtesting and study. That saved me from bad strategies.
I decided to add RSI in my strategy after a saxo bank seminar which happens to have millions in lawsuits against them and I decided to use it.
RSI must be above 50 if you wanna go long. Since I don't know it's mechanics I have to ask what number must RSI be before I short. If anybody could help me with that I would be grateful.
1) 90% profitable entries
2) Avoiding losses. As I posted yesterday a 50% loss needs 100% to be covered. Small accounts are being wiped out because of that. It doesn't have to be 50% loss 100% return. Even if you lose 1% in a day you need to get 2%. So if you lose 1% here and there and you are not good on taking profit either you have lost before even started.
3) Profitable exits.
You can't know where prices will go but entries can be easy. Exits are important for an account to grow well and fast.
I like trading the news but not as they happen I prefer the aftermath. Let's say that the euro news are very good today. The euro went up 50 pips and droped. Now it will probably have an up moment if you enter at the right place.
You have to spot a 123 setup. That means we have the price starting from point 1 and forms a top on point 2. Then it forms a bottom on point 3 which is higher than point 1. We use stochastic and MACD to confirm tops and bottoms especially with stochastics and macd is also helpful. You but when the first candle closes higher from point 3. I usually trade with 30 minute frames and I look for the candle closure on 5 min or 15 min frames (15 is more of a sure thing). With one hour time frames you can check the breakout at 30 minute frames and so on.
I buy if the MACD is bullish and RSI is 50 and bigger. To take profit I use My fibonacci expansion. On 0,618 I sell 2% of my position to cover my fees (with stock or options). On 1,000% I sell 30% of my position and I close the whole position at 1,618%.
Stop loss depends on the leverage but it is just for slippage. I actually close the position if the breakout fails and the candle of the 15 minute frame closes lower than the breakout point. When I see the first candle closing above my 0,618 I put my stop loss 1 pip above the price I bought so if I lose at least I lose with profit. When the 1,00% fibonacci is closed with a candle higher I move my stop to the 0,618 level. If macd or stochastics show a top 1 or 2 pips below my fib I close my partial position earlier and wait for the next one.
The more candles before the breakout the better the breakout. If you're not news aftermath trader you can use it as reversal pattern so if you use it to go long you have to identify a previous short. If you wanna use it to go short you can do the opposite.
If the fibonacci expansions match previous fib expansions of other moves you are already in the move so your take profit will be the 161.8 of the previous fibonacci expansion.
Since it's working nearly always. I use 40% of my balance in every trade and with high margins.
Always be aware of support and resistance levels in the bigger time frames cause you may fall in the middle of a support or resistance war. Also be aware of the fibonacci retracements in the bigger time frames.
MACD is less important in sideways moving markets. Be aware of that.
THE BIGGEST TOOL YOU NEED FOR THAT IS DISCIPLINE.
This plan is about getting into SURE trades. ANY account to go huge doesn't need risky tactics for huge profits. You will see your account grow smaller every day with those tactics until it blows up. For an account to grow big you need wins sure trades. That's why I trade so defensive.
And another advice. Market making brokers suck. Virtual dealer plug ins suck. An ECN broker is not that expensive and sometimes its cheaper. An Stp broker is also a good Idea. Market makers are stop hunting sharks. That doesn't mean ECN or STP can't be sharks. Before using a broker check this site. I actually found about it some days ago looking for a broker and I thank god for it.
Forexpeacearmy is the site.
I posted my strategy here to make some last minute tweaks. I just got 18 and I have been backtesting strategies short and long term strategies till I was 14. Thank god I was forbidden to trade so all I could do is backtesting and study. That saved me from bad strategies.
I decided to add RSI in my strategy after a saxo bank seminar which happens to have millions in lawsuits against them and I decided to use it.
RSI must be above 50 if you wanna go long. Since I don't know it's mechanics I have to ask what number must RSI be before I short. If anybody could help me with that I would be grateful.