Magic 5 - five pips only

THIS THREAD IS NOT COMMERCIAL.

Alright friends, I decided to move here. Ramped up rules and stuff.

Original thread was here: http://www.forexfactory.com/showthread.php?t=510468
later it became a method deserving wider environment.

SO..

Forex is about making five net pips in an hour...

We have been abusing ourselves with reading, seeking and doing all that crap to make money from FX.

We are all fools.

Do you indeed need indicators, algos, malgos, zalgos I don't know codings modings to make 5 damn pips???
You need very basic forex skills...yes, basic skill to earn 5 pips and move out immediately!

5 pips is just simple and shortest movement of a God damned candle my friends. Yes it's.
And can't we really locate that movement during an hour?! We all can and we will!.

And if you think you still cant do it that means you are afraid of the market and must quit trading. Yes you must.

THINK ABOUT IT: you locate a movement up or down...open a position of 50K (0.5 lot), take those 5 pips and close the position. Then come back next hour do it again!
$25 an hour. enough.
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To start I attached the TEMPLATE.
Details are given on 2nd post.

1. Use M5 (instead of M15): from 6 pm London up to first 5 hours of Asian ( in other words 4 am London time)

2. Use M15 during London and London/NY overlap
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since my Messaging is disabled for improper reasons you can reach me by email: [color=Red][highlight=White][email protected][/highlight][/color]

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DISCLAIMER:
ANY MODIFICATION TO MY SYSTEM and ALSO ANY THREAD OR SUB-SYSTEM INTENTIONALLY CREATED USING RULES AND METHODS DESCRIBED ON THIS THREAD IS PROHIBITED AND DISCOURAGED. THIS IS PERSONAL PREFERENCE OF THE AUTHOR.

So a simple and powerful way doing it turned out to be:

+5 EMA (2 shift/offset) and 5 NET PIPS...and 30K-50K lot and 1:500 leverage.
+RSI 8
+and of course non-news quiet times.


--- Use only ECN account
--- if you dont have much money use 1:500 leverage to be able to open at least 30K lots
--- DONT FORGET: Trading is a business...Business requires investing!! Dont be stingy!

1. Enter (right on the second candle opened inside 5ema) Buy trades only if price is over ema200 (either m15 or H1 you choose) and only sell if below ema 200.
2. Dont regard all crossings (over 5ema) as trade set-ups. Avoid consolidated areas and zones of small candles.
3. Always confirm set-up with HA candle.
4. Enter set-ups ONLY on times where price 'comes from' critical RSI 70 or 30 zones. In this way IT"S SAFER!.
5. DONT OVERTRADE! MAX 4 TRADES A DAY (IF YOU WANNA LIVE LONGER OF COURSE).

yes 5 simple rules.

Mindset is "I rather wait wait and spot a set-up earn 5 pips within an hour than make 30 pips then lose 50 pips later..."

Some examples from old thread:

http://www.forexfactory.com/showthre...77#post7828077

For specific questions, concerns and advise please PM me.
dont litter this thread.

Dear friend,
thank you for the thread. I followed your previous thread and for the first time i was able to made 16 succesfull trades out of 20. For me this is big.
The problem I am working on is to be able to exit the trade before it makes too much damage since those 4 trades impacted more on the demo account that the successful ones. Still is a big step forward because if I am able to solve this issue I will have a solid trading system that with big lots makes big money.
The other related issue that I have is the spread since I always start the trade from 2.6 to 4 pips behind. I imagine there are better forex suppliers than the one I have to solve this issue.
Again, thank you and keep up the good job,
Manuel

Great update tk5, I'll keep working on this method mate!

Thanks tk5, 1st trade GJ took 5 pips i know its against rule of 200 ma i sold above it. other price action RSI and 5ema Cross are with me.

Hi tk5,
Please advice, how to put the STop Loss?

Thanks,
anton

Guys..today i have limtied access therefore briefly some points.

stop loss - this I control manually since m15 is tighter timeframe and maybe volatile. to be on safer side just place Sl little below the last candle of opposite color. (if long, below of last bearish candle Heiken Ashi).

I strictly suggest using Heiken Ashi at least for confirmation of set-up (this is the main essence). After confirmation you, if you desire, can control with jap candles.

My personal request to all - kindly dont upload charts with fancy and unrelated indicators and also displaying bigger pips gain from a trade (i know you can if you want but that's totally against the philosophy of this idealogy). this creates confusion and deviation from method and its mindset.

Tk5,

Thanks for your fast and kind reply.

Regards,
anton

Excellent, well thought out post

Thanks TK5. Subscribed to this thread as well.

Your method really is simple and works.

I have been struggeling but this trading method has helped me. For now i am only aiming for 1% per day in my trading. Like you say if you cant do 4-5 trades a day you a pussy. Well thats ok. i am trading on my real account only and have made quite a few mistakes. Was building my account until 3 days ago lost 80% of my profits. I was not waiting for the correct signal and trying to over trade.

This is my 5pip (1%) trade for the day. Only safe trades and thats it.

Thanks again for your help.

1% a day should yield me quote a nice lump some at the end of the year. Slow and steady wins the race
GBPUSD.gif

Can you post a copy of your trading screen, so we can see what it should look like? Thanks

been busy these days.
meanwhile you can check this post here.,to have an idea.
http://www.forexfactory.com/showthre...77#post7828077

btw..henry's this trade is very good example. he did things correctly even profitwise.

I uploaded this small chart from a trade (wrongly entered) by a buddy to show entry and non-entry points..& reasons.

this picture says all I assume.


http://img.ie/images/hzr3d.png

I have being wondering about those wrong entry point also.
Can you kindly clarify, the reasons not to enter such trades.
As clear i saw a good setup there also
Thanks in advance

Here is one of mine in AJ,, had no idea of the future outcome of the candle as you can see, nor did/do I care, I was after 5pip. The trade itself was a bit risky (maybe not the best example here, sorry tk) as the rsi was nearing the 70. Price above the 200, the candle printed a low of .80 on my platform and at the time of trade the 5ema and candle bottom were touching, I took the trade and with spread (2.5) I got in at .83, got to 5 pip and I took profit,,, and as you can see about 10sec later someone wanted a boatload of AJ, but that's trading who knew it would blast off. I see many trades taken in the middle of the candles on this thread and the other thread, I don't know if that's an illusion or what, and if its working for you keep at it, me personally I want to take trades as close to the 5ema as possible and not be out in the middle of the woods (middle of a candle), you spend less time in the red, and a faster take profit in my opinion. Practice what tk has offered here (yes its not fool proof, nothing is in the market) practice lowest entry, practice it till you don't hesitate and reasonably trust the method, again its not without a fail here and there.

the ones marked X are pullbacks...no need to enter them. to be safer you shouldn't trade against trend. (unless you are really pro)

regarding the actual trade that was entered..he could keep it although one bullish candle came and he closed in panic..but i wouldnt because i know it's temprorary (cause sentiment is down). as you see LATER price indeed continued southward