Aggressive inside bar trading

Hello everyone,

Here is the "system" I use. There is no indicators it is only based on Price action.

I enter a trade on an inside bar when the 50SMA and the daily situation are in agreement.

In picture it is clearer :







If the SMA and the daily position do not agree I wont take the trade. ( for example look at the arrow before the one I highlighted : we do not trade there )

That is all there is to it really.


The important part is the money management :

Your stop must be 1% of your account.
If your stop is 20 pips and you have 1000USD. Your position size is :

1000x0.01 = 10
10/20= 0.5

50 cents per pip : lot size 0.05.

Sometimes you will have a very tight range ( less than 5 pips or so ) in that case use the high of another previous candle of your choice.


I'll start logging my trades as soon as my new account is opened. Feel free to ask questions or post examples of your trades using the "system".

Regards
Julien

PS: just one more thing : we take inside bar setups on pinbars also, but only if the pinbar "tail" is in the opposite direction of our trade. If we get a short signal and the pinbar tail points down we do not take the trade.

The indicators I use :

One is the daily open line
The other is used for 60minuteman trading system, we use it for the 50SMA and the inside bar alert.

"show entry infos" should be false since we use a different system.

A good and a great short on USDJPY today.

An example of tight range :

The high of the mother bar is less than 5 pips away from the entry. We would then use the high of a previous bar +1 pip + spread as a stop : here the red bar that interlap with the opening price line.

That would secure a potential 120+ pips short on GBPJPY today.

Example of wide range : silver yesterday



We have a very long mother bar with a potential 4 largely winning trades.
In that case we want to keep the risk at 1% so the position size will be smaller.

Still about 100 pips potential of silver ( 500 regular pips ) for each trade for the 50% that is let run. I'm kinda frustrated I'm changing broker and couldn't take those trades. But this kind of opportunities are not that rare and make up for the hard days.