I have decided to remove all the links in this post and thread again. I hope this time its not moved! The original post is at:
http://www.forexfactory.com/showthread.php?t=261466
After having lost over $10,000 in the markets in the last 3 years, I had to sit down and come up with a strategy that allowed me to be profitable in the markets. Making money is all about being in sync with the markets. This system earns me 150 pips each week for the last four months. However, its no guarantee it will work for you.
A quick word before I start: Trading is an art not a science. The rules here might be very clear but you need to have an instinctive sixth sense to benefit from the markets. You will need chart time of a pair to know how it works. I am sure that will come up on my blog as well as on my trading journal here on Forex factory.
TIMEFRAME: 1 HOUR
PAIR: EURUSD
INDICATORS: Bollinger Bands (50,0.5)
Stochastic (34,5,5) (Smoothed)
Support and Resistance Lines
Position Sizing.
I use a leverage of 30:1 calculated every monday morning. I use that lot size for the whole week. Its up to you to decide your risk.
Money Management
Take-Profit - 30 pips
Stop -Loss - Last swing high/Low + 2 pips. Remember that a stop loss is not the price at which you will exit when you realize you are wrong, its the price that the market will take you out if everything goes wrong. Being a day trading strategy, the exit should be manual.
Objectives
As a trader, I believe in having objectives. I know its controversial but I will watch a 400 pip move in a day without trading after making my 100 pips for the week. Maybe one day when i am ready I will start looking for the home runs. But in my losing days, I watched a lot of profits turn into losses waiting for the home run.
My objectives therefore is simple, to make 100 pips every week.
Setting up the charts
The stochastics needs to have the 50 level line.
Use period separators too.
Mark important resistance and support levels closest to the price.
Entry
The stochastics need to cross the 50 level line. Wait for price confirmation before buying or selling. The confirmation is a close over or below the Moving Average of the BB.
Exit
1. A reversal signal, i.e., a cross of the stochastic 50 level line confirmed by a cross of the BB MA. This rule is not cast in stone and that is why I said that you will need to have a feel of the pair. Its not ambiguous for me because I know when the reversal is genuine.
2. A cross of the nearest significant S&R levels. This is one set-up that has a 97% success rate. When you enter a trade and then it reverses immediately closing below/above the immediate S&R level, the chances of hitting the TP is very high.
P.S: When I have a losing first trade in the day, say of 40 pips, then my next trade's TP is 100 pips. Remember that my objective is a total of +100 pips. No revenge trading.
3. The other exit is obviously a hit of your stops either the TP or the SL.
I urge anyone using this system to paper trade it first so as to get a feel of this system.
Great Pipping everyone
http://www.forexfactory.com/showthread.php?t=261466
After having lost over $10,000 in the markets in the last 3 years, I had to sit down and come up with a strategy that allowed me to be profitable in the markets. Making money is all about being in sync with the markets. This system earns me 150 pips each week for the last four months. However, its no guarantee it will work for you.
A quick word before I start: Trading is an art not a science. The rules here might be very clear but you need to have an instinctive sixth sense to benefit from the markets. You will need chart time of a pair to know how it works. I am sure that will come up on my blog as well as on my trading journal here on Forex factory.
TIMEFRAME: 1 HOUR
PAIR: EURUSD
INDICATORS: Bollinger Bands (50,0.5)
Stochastic (34,5,5) (Smoothed)
Support and Resistance Lines
Position Sizing.
I use a leverage of 30:1 calculated every monday morning. I use that lot size for the whole week. Its up to you to decide your risk.
Money Management
Take-Profit - 30 pips
Stop -Loss - Last swing high/Low + 2 pips. Remember that a stop loss is not the price at which you will exit when you realize you are wrong, its the price that the market will take you out if everything goes wrong. Being a day trading strategy, the exit should be manual.
Objectives
As a trader, I believe in having objectives. I know its controversial but I will watch a 400 pip move in a day without trading after making my 100 pips for the week. Maybe one day when i am ready I will start looking for the home runs. But in my losing days, I watched a lot of profits turn into losses waiting for the home run.
My objectives therefore is simple, to make 100 pips every week.
Setting up the charts
The stochastics needs to have the 50 level line.
Use period separators too.
Mark important resistance and support levels closest to the price.
Entry
The stochastics need to cross the 50 level line. Wait for price confirmation before buying or selling. The confirmation is a close over or below the Moving Average of the BB.
Exit
1. A reversal signal, i.e., a cross of the stochastic 50 level line confirmed by a cross of the BB MA. This rule is not cast in stone and that is why I said that you will need to have a feel of the pair. Its not ambiguous for me because I know when the reversal is genuine.
2. A cross of the nearest significant S&R levels. This is one set-up that has a 97% success rate. When you enter a trade and then it reverses immediately closing below/above the immediate S&R level, the chances of hitting the TP is very high.
P.S: When I have a losing first trade in the day, say of 40 pips, then my next trade's TP is 100 pips. Remember that my objective is a total of +100 pips. No revenge trading.
3. The other exit is obviously a hit of your stops either the TP or the SL.
I urge anyone using this system to paper trade it first so as to get a feel of this system.
Great Pipping everyone
Attached Image (click to enlarge)
