Looking for a system that will never lose?
Or will lose less than 1% of the time?
Then this is the wrong place for you.
My system works.
It IS profitable
It DOES make pips.
It is profitable simply because of a simple rule:
The losing trades are cut short
The winning trades are let run
You Follow the rules To The Letter
Okay, here it is.
On the chart:
- Japanese Candlesticks
- 50 SMA of the High
- 50 SMA of the Low
- Fibonacci Extension Pulls
The SMA's create a channel.
When a candle Opens and Closes above or below the channel, enter the trade respectively long or short.
e.g. Candle opens and closes above the channel - Go Long
Cautionary note: I will not advise buying a long break of the channel when price is sitting just below a resistance line.
Support and Resistance lines rule the markets in my opinion, and I trade them in addition to my channel, so if a channel break occurs near a S/R level, I would advise waiting for the break of the level as well as the channel.
If at anytime a candle Closes within the channel, exit the trade.
I also completely exit the trade at the 423 Fib.
Take Profit and Stop Loss Rules:
When in a position, I will have Fibonacci targets pulled (prior to the move).
After I have achieved the 123 Fib level, I then maintain a stop loss distance of Two Fibonacci levels away from the price.
e.g. If the price achieves the 161 level, my stop will then be at the 100 Fib (the middle value is the 123).
I have found that this allows my trades enough room to breathe amd achieve my 423 long-term target.
Yet if the trade is going to fail, then I will take a substantial percentage of the profit available as my stop is dynamically moving with the price at a 'close but not too close' distance.
However, this is just personal preference. Use whatever works for you, the main thing here is the entry signal.
I will say again, the 423 Fibonacci level is my overall target with my trades.
There are many systems around, some brag impossible results, some genuinely work. However, what's the annoyance in all of this?
Finding a system that apparently never loses or loses very little, investing in it, then losing money with it!
Happens to everybody.
This system can lose.
However the losses are minimal, say 8 pips here 12 pips there.
But the winners can be Golden.
Here we are targeting Fibonacci Levels for stop loss levels and take profits.