Keep it Simple Stupid (KISS) Method

OK I'm a forex newbie, so apologies if this "system" appears elsewhere on this site.

I use only Bollinger Bands (not essential - but useful) and mark one eyeball!

System should work on any time frame and any pair (after all the only real differences between short and long timeframes is scale!)

Basically I look for blindingly obvious changes in direction of the price movement (see attached pic). Remember the reversal will be OBVIOUS

A good signal will be at the extreme edge of a bollinger bad, and will consist of a classic candlestick reversal pattern (just research candlestick reversal patterns)

depending on how much play you want in the move, then your stop loss will be just below the lowest/highest point just prior to the large candle.

Typically a total stop loss of 15-25 pips on the 1 min timeframe (eur/usd) should be sufficient - but of course will depend on the size of the reversal candle.

Take profit will vary, but as a rule, if you look for 10 pips on a 1 min timeframe, you wont go far wrong.

Using this method, you should be able to get 10-20 trades a day, at an average of 10 pips 200 pips should be relatively easy to achieve!

I'm sure there are hundreds of indicators that could be added to improve the system - but the whole point is K.I.S.S.!


If I have made any glaring errors - please feel free to let me know - and Good trading!!!


The other indicator (200sma) newmacd are simply there as a guide - 200sma is useful

hi thanks for sharing.. is there any chance you could post a few more examples on a clearer chart..

Danny.

The wise man knows what he doesn't know..

my demo MT4 is down for now, but will upload ASAP

OK have attached 1 min chart of eur/jpy circling potential trades (in my eyes at least)

As I said in my original post. Trades will be Obvious. If you cannot see it just by scanning, it isn't there!!!

As you can see from this, there are 7 trades in 3 hours, and could have easily achieved over 100 pips on just one currency!)

Thanks for the second chart much clearer,

Using the range then trading a reversal to get some of the follow through isn't bad.

Added this into my own trading sytem, more hopefully profitable setups per day

Thanks

Just noticed something on the 1min eur/jpy that caught my eye!

Attached at the point I noticed, than 3 mins later.

As I said - the trades will be OBVIOUS.

I have added the 3rd screenshot to illustrate where I would have been out on this trade.

I look for modest pips, and there was a sign of weakness on this particular trade. Sure it could have and indeed may well go on to make more, however a 10-20 pip target on each trade, and I can re-enter when strength returns to the move. I have exposed my account to for a sum total of 5 minutes, with a gain of 20 pips!

Also please notice that my SL would have been 131.5 (so the risk/reward ratio was 2:1). 131.5 just happens to be a "round" number so is a prime candidate in itself on systems based on round numbers!!

5-10 of those a day is BIG money

Just to prove my point......

I hope people find this useful!!!

OK hopefully I have described the "system" well enough for you to see what I am trying to say.

These trades will stick out like sore thumbs. If I can see them ANYONE can !!!

There are a whole lot of so-called K.I.S.S systems posted here - is there one that is simpler???

Remember indicators are NOT needed for this!!!

This works ANY PAIRaND ANY TIMEFRAME
So PLEASE, if you see an OBVIOUS trade place it on this thread!!!

I look forward to what you find!!!

IF IN DOUBT KEEP OUT!!!

Most of my system is based on a 3EMA crossing over a 5SMA, then confirming it's direction by taking out 13sma then 26sma pausing at either ='s exit sharpish before it reverses on you.

Much like yours you need to trade it after another move to catch the reverse.

3ema filters out spikes and noise nicely.

Great, could you post a screenshot of your system in action here please?

I'm sure your system could well be better than mine profit wise, but my method does not rely on any indicators.

I'm not for one moment saying that mine is the most effective (it might be - but only time will tell!) But I think I have a strong case for saying it is the most efficient!!

Always willing to learn from someone more experienced than I

Hi.

Thank you for sharing and Good Trading for you too.

You have probably made a error when calculating your numbers.

You say "200 pips should be relatively easy to achieve" but you also say "you should be able to get 10-20 trades a day" and "look for 10 pips on a 1 min timeframe"
That will be more like around 150 pips pr day in average if you have 100% hitrate.
And you say "Typically a total stop loss of 15-25 pips" so if you have a couple of loosers or more pr day (and i guess you have far more than 2 loosers pr day if you have 15 trades or what? Maybe 4 - 5 loosers?) you are down to maybe average around 100 pips pr day and that is even probably even far to optimistic number i guess?

So the way i read it i think there have to be some big errors in your numbers.

So what is your average hitrate and how many pips do you normally make on average pr day with this system?

Thank you very much in advance.
Regards.
Arctic4x

Will post 1 up later when I'm on the PC and outta bed!!

Artic4x, he's taking the same trades as I look for in 1 of my setups, slightly different way to spot it, I got 23wins in a row just playing that recently without any even going negative, jumping on when momentum is high and not getting greedy is key.

The downside is, alot of watching required and waiting for only a few minutes in the market so you'll get bored and start making stupid trades again

Turveyd look forward to your charts..

Danny.

The wise man knows, what he doesn't know..!

Arctic,

I see where you are coming from, what I meant is 10 - 20 wins OVERALL at 10 - 20 pips each would be 100-200 pips (so if you have 5 losses then you will need 20-30 trades to get your 10-20 - as you will have lost 5 so need another 5 to make that up - my maths is NOT that bad!!!)

That CANNOT be contested!!

with this system, you should be able to achieve 10 wins OVERALL in any one day.

Also, you should know relatively quickly in the trade if it is going for you or against you, so you don't have to wait for the SL to be hit. Nothing worse than spotting a trade going against you, and watching it go right the way to your SL, when you spotted it 5-10 pips before!

As I said IF IN DOUBT STAY OUT

By watching the price movements in a very short time it will be OBVIOUS which trades are likely to succeed and which aren't

TurveyD,

Thanks for your input - clearly I must be on the right lines at lkeast!!! I too look forward to your charts.

I never claim for this method to be perfect, but ultimately any method that can win more times than it loses should be able to be profitable.

The whole point of this is that if it is OBVIOUSLY going in a direction go for it. Thus if you are OBVIOUSLY wrong then get out ASAP, then move on to the next one.

In the brief time I have been using this, there are at least 2-3 trades per hour per currency. With no indicators, it is very easy to check 5 currencies and literally within seconds spot potential trends.

I showed this to my 12 year old son on an MT4 demo account and within the first hour he made 3 successful trades!!!

Well it certainly 1 of the quicker easier ways to make a living of Forex, small but relatively often and safe.

I've included my chart template for EJ, which this system works better on as it has much bigger pip swings.

Bailing the first sign of trouble is important, a) it preserves cash and b) with this setup it very likely it'll be a fake up move and reverse on you hard and fast as your normally counter trend.

Avoid trading over news, although when right it'll be highly profitable so maybe it's a good time to trade and a guaranteed move to jump on, but it's also erratic and will hit your stop too quickly to do anything.

As said, very similar methodology 23wins in a row.

All SMA lines are used as S/R areas, which you can use as reverse points and trend indication!!


Have fun

TurveyD

Just downloaded your template on MT4, and the amount of EMAs on there is confusing me to the extreme!!!

Perhaps you could put a screenshot with the key points highlighted (i.e. where exactly your entries and exits would be. I presume you would use the crossing of either the thick yellow or white lines and the blue lines - or is there something I am missing here?!!

I'm sure it is highly effective, but definitely takes more to process (at least in my mind!!)

Thanks for all your efforts

Hi psgm,
Thanks for sharing your system. I realy want to lay my hand on something simple.I will study this very well so do not hesitate to teach more and post more of the chart.Can u pls post a template.
Real pips.

whats ur BB set up?? if somebody hasnt asked??

I have to disagree on one point.

The obviousness of the trade afterward does not means that the trade is obvious at the moment.

You need to explain more clearly your point because i'm sorry to say that i'm a bit confused.

You have circled areas when there is an acceleration but if firmly believe you are prone to a big number of losses with this strategy.

For example, on this trade http://www.forexfactory.com/attachme...6&d=1241162537, it could absolutely have turned into a double top. You have no way to tell that there will be a continuation.

Also scalping (because you are scalping) is the more stressfull strategy that exists so maybe it's rewarding but you need a lot of time, a lot of concentration and month of screen time before starting to trade.