The Pimpster's Simple system, not the holy grail, but darn close

Hello fellow traders. This is an awesome and an outstading forum. I have been trading actively for about 1 1/2 years. I have learned so much from this forum and very thankful for all of the great indicators that I have also downloaded from here and I wanted to give back something. I believe in sharing and giving and passing it forward. I believe that I have a great simple system and there is always room for improvement so I thought I would post it here and maybe get some feedback on it. I call this system (the pimpster grail) Anyway this system is so simple and easy any beginner can do it successfully.
As we all know, the market moves in 3 directions (up, down, and sideways). Some traders like to go with the trend, some trade ranging markets, and others counter trade (most riskier). I am the counter trader. It's not an easy way to trade but IMO it's the best way to trade. If you can master this, I believe that you should have hardly any bad trades and I will show you how. Granted you will not get as many trades as you would prefer, but when you do get a trade it is pretty much as I like to say (MITB), money in the bank. I traded this system live on smaller time frame risking a very high percentage of my capital (I won't say how much, just very high), and I doubled my capital in 3 weeks (mind you I said this was live trading and not demo). I have now toned it down a bit and I am risking less.

The key to this trading system is to have patience and wait for a trading opportunity. Let the indicators do the work for you and wait for you alert and signals for a trading opportunity. DISCIPLINE is the key to trading and staying focused. This system works if you strictly follow the rules, and if anyone has any ideas to improve this system by all means. This is why I want to share it with you. There is more than enough to share in the FOREX wealth world so why not share. The more minds, the more ideas, the better.

Below in the attachment is my trade for today for 50 pips on the eur/jpy pair (that one was way to easy). This one was a great setup and basically I knew it was MITB. I would have went for more but I do not like to stay in trades past a certain time. So I await your comments, suggestions and or improvements to this system.

Let's please keep this forum and discussion clean from any negativity. We are here for each other and improve our trading skills and of course make money.

OK so let's get down to it and start making some pips.

Timeframes traded (H4 & D1)

INDICATORS USED RSI, MACD, STARC BAND

I USE AN RSI INDICATOR THAT WILL ALERT VIA TEXT OR EMAIL WHEN THE OVERBOUGHT AND OVERSOLD LEVELS ARE BREACHED. IT IS ATTACHED.

H4 RSI ENTRY RULES (40 - 50 PIPS TP)

MACD (12-26-9), STARC BAND (5-15-1.33), RSI (PERIOD 8, Overbought 85, Oversold 15)
OPEN BAR ON H4 TF SHOULD HAVE PENETRATED OR IS TOUCHING THE STARC BAND INDICATOR UPPER BAND OR BELOW BAND (THESE WILL ACT AS S/R).
ONCE SIGNAL IS RECEIVED AND CONFIRMED, WAIT FOR THE NEW BAR TO BE FORMED ON THE H4 TF. SWITCH OVER TO THE H1 TF AND OBSERVE THE CURRENT BAR. IF THE CURRENT BAR HAS NOT CHANGED TO THE COLOR OF THE DIRECTION THAT YOU ARE TRADING YOU MUST WAIT FOR THE NEW BAR AND IT NEEDS TO BE EITHER RED FOR SHORT OR GREEN FOR LONG.
THE MACD (DEFAULT SETTING, 12-26-9) CURRENT BAR ON THE H1 TF MUST BE THE COLOR OF THE DIRECTION THAT YOU ARE GOING, RED FOR SHORT OR GREEN FOR LONG. ONCE THESE CONDITIONS ARE MET ENTER TRADE WITH MARKET ORDER AND PLACE YOUR SL ABOVE OR BELOW THE PREVIOUS HIGH OR LOW ON THE H4 TF. TAKE PROFIT OF 25 – 30 PIPS.


D1 RSI ENTRY RULES (70 - 100 PIPS TP)
MACD (12-26-9), STARC BAND (5-15-1.33), RSI (PERIOD 8, Over 85, Under 15)
OPEN BAR ON D1 TF SHOULD HAVE PENETRATED OR IS TOUCHING THE STARC BAND INDICATOR UPPER BAND OR BELOW BAND (THESE WILL ACT AS S/R).
ONCE SIGNAL IS RECEIVED AND CONFIRMED ON THE D1 TF, SWITCH OVER TO THE H4 TF AND OBSERVE THE CURRENT BAR. IF THE CURRENT BAR HAS NOT CHANGED TO THE COLOR OF THE DIRECTION THAT YOU ARE TRADING YOU MUST WAIT FOR THE NEW BAR AND IT NEEDS TO BE EITHER RED FOR SHORT OR GREEN FOR LONG.
THE MACD (DEFAULT SETTING, 12-26-9) CURRENT BAR ON THE H4 TF MUST BE THE COLOR OF THE DIRECTION THAT YOU ARE GOING, RED FOR SHORT OR GREEN FOR LONG. ONCE THESE CONDITIONS ARE MET ENTER TRADE WITH MARKET ORDER AND PLACE YOUR SL ABOVE OR BELOW THE PREVIOUS HIGH OR LOW ON THE D1 TF. TAKE PROFIT OF 50 –75 PIPS.

Thanks for sharing. Going to follow with interest.

Daily chart on nzd jpy is ready to be short but the h4 tf has not met the criteria. It currently has a green candle. I will enter trade for short once h4 tf has turned. Observe nzd/jpy daily chart, it has peaked.

PP

Do you wait for the H4 candle to close or do you enter once you see it has turned red just for one second?

Your rules don't make any sense.

You mention the RSI but you don't say how it is used.

You don't say which direction you trade with an upper or lower band hit.

FraggleRock,
If the candle turns let's say red, as long as it is the same color as the MACD, I will enter the trade. Take a look at NZDJPY, it has already started to make it's move like I predicted, and once the candle gave me confirmation by turning red, I entered the trade. It didn't matter if it was a new candle or not because I am only using it as an entry point for the Daily chart.

PP

Billbss,
Sorry for any confusion. I basically use the RSI as my signal for indicating tops and bottoms for the reversal. So with the RSI settings of period 8 and overbought level of 85 and oversold level of 15, once I get these signals from the RSI, I follow the rules for entry as stated. Hope I kind of cleard things up.

So basically, RSI is above 85 you go short, RSI is below 15 you go long.

PP

I was wondering if you can share what pairs you trade on this method?

Also, when you were trading on the lower time frames, what time frames were you using, if you don't mind sharing. Were the lower time frames no longer profitable or did you just want to move to a less stressful time frame?

This works with all currencies, as long as it meets the criteria.

I was trading the M5 TF and it was very tricky because it is a counter trade system. Your timing on every trade needs to be perfect or it can and will take off on you. It was also stressful because my risk % was very high. The profits were great but you know the old saying, you bet big you win bit, and you also lose big. After having 40 consecutive successful trades, I decided to change my tactics and strategy while I was ahead. Every now and then I will trade it but that's when for me it's a no brainer not to take the trade. Sometimes the setups are really that easy. This strategy here really puts me at ease and very stress free.

PP

Thanks for responding so quickly. I can't wait until I'm a member so I don't have to wait for my post to be cleared first.

I can understand what you mean about the lower time frames. They can be very hectic.

If you don't mind me asking do you trade for a living?

No, I trade on my spare time and luckily I am able to get trades in at work because I trade with Oanda's web based sysem. I also trade MT4 when I am home. I use MT4 to send me signals and alerts to my phone when I am at work so I can get my trades in.

PP

I shorted NZD/JPY just now at 63.63. I have my stop loss at 64.69. Is that the correct stop loss to use?

I look forward to your thread as I like the simplicity of the trading.

I hope I'm not bugging you or asking to many questions. I'm just trying to get my trading on track and I think this would be a good place for me to start.

I was wondering do you always use a predetermined take profit or do you sometimes manually trail your stop loss? I'm asking because your chart says you took your trade with a 50 pip take profit and you risked 5% on the trade. If I'm correct since your stop loss will sometimes be pretty large, your MM is very rarely 1:1.

I have some weird thoughts on MM but I just wanted to see how your trading goes since your trades probably are risking more than what your target is.

I entered short at 63.63 on NZD/JPY and currently I'm +32 pips on the trade. I believe that the pair still has room to drop so I'm going to hold onto the trade and ride it out and see what happens.

hey Pimpster, can u save a template for MT4 and upload it on here, i got one of my charts set up like it on Oanda, but prefer to use MT4 much appreciated

My message has been moderated because I think I didn't elaborate enough with my reply, let's say it once again :

I think your system have potential. Thanks for sharing it.

I would also like to have a MT4 template for this method. I coud try it and test it on some USD/CAD and EUR/JPY. I like those two pairs. Do you have more screenshots of example for your method?

Malouin

I will upload the MT4 template as soon as I get the chance. I work during the day and I don't have access to my platform. If you were able to get into the NZD JPY trade last night, you should have got a descent return on that one.

PP

I was able to make +46 pips on that trade which added a little more than 2% to my account.

Thanks for the call!

Hi Pimpster,

in your first post you talk about using MACD with the default settings (12,26,9), but in your screenshots you use other settings (10,22,8)...

Can you explain the reason?
And what do you use the ADX for?

I also saw you are using the H8 chart...can you elaborate on this?

Olarion,
Yeah I can see the confusion. The ADX and MACD settings was just something that I was testing out that my father gave me who is also a trader and I just forgot to reload my settings. So disregard that.
I use the H8 chart as a signal also but not every platform has the H8 chart. I just showed it as a visual showing the descent of the of the candle. Hope that cleared things up.

PP