Here is the most up to date version of this method.
It has been changed several times since the thread started so I have been asked to save you some time by continually posting the up to date method on this number one post.
Fxstu’s Swef System
1.All trades are based on the high or the low of the candle that has just closed. I use GBPUSD but any pair seems to work.
2.If the range of the trigger candle is less than 90 pips then I do not trade it.
3.I use the Daily chart. Before I start a sequence of trades I write down on a piece of paper the equity level in my account.Ideally orders are placed the minute a new candle starts. However as I am not always up at Midnight then the following morning is ok.
Longs
MACD on yesterdays candle must be above zero. Yesterdays candle must have closed above 10 EMA
Yesterday’s close - the LSMA must be green.
We place a long at the lowest price of the candle that has just closed.
Take profit 100.
I only buy if the 10 ema is above LSMA
No stop loss, but if the equity on entire account falls 500 below the equity on my piece of paper then I close all trades.
Shorts
MACD on yesterdays candle must be below zero.
Yesterday’s candle must have closed below 10 EMA.
Yesterday’s close - the LSMA must be red.
We place a short at the highest price of the candle that has just closed.
I only sell if the 10ema is below the LSMA.
If I have 5 pending trades then I cancel the oldest pending trade. So the maximum number of pending trades is 4.
If MACD is above zero then all pending sell trades are cancelled.
If MACD is below zero then all pending buys are cancelled.
IF LSMA is red then I cancel all pending buys signals – if green I cancel all sells.
Each day at 4pm London time I turn on my computer, if my equity is higher than the amount written down on my piece of paper then I close all opened positions and cancel all pending orders.
Optional Extra Rule.
It is possible to trade Swef by opening two lots every time we get a signal.
We close lot number one according to the normal rules.
We could set lot number 2 to break even ( optional )
We close lot number 2 when the LSMA turns against our lot number 2 trade.
It has been changed several times since the thread started so I have been asked to save you some time by continually posting the up to date method on this number one post.
Fxstu’s Swef System
1.All trades are based on the high or the low of the candle that has just closed. I use GBPUSD but any pair seems to work.
2.If the range of the trigger candle is less than 90 pips then I do not trade it.
3.I use the Daily chart. Before I start a sequence of trades I write down on a piece of paper the equity level in my account.Ideally orders are placed the minute a new candle starts. However as I am not always up at Midnight then the following morning is ok.
Longs
MACD on yesterdays candle must be above zero. Yesterdays candle must have closed above 10 EMA
Yesterday’s close - the LSMA must be green.
We place a long at the lowest price of the candle that has just closed.
Take profit 100.
I only buy if the 10 ema is above LSMA
No stop loss, but if the equity on entire account falls 500 below the equity on my piece of paper then I close all trades.
Shorts
MACD on yesterdays candle must be below zero.
Yesterday’s candle must have closed below 10 EMA.
Yesterday’s close - the LSMA must be red.
We place a short at the highest price of the candle that has just closed.
I only sell if the 10ema is below the LSMA.
If I have 5 pending trades then I cancel the oldest pending trade. So the maximum number of pending trades is 4.
If MACD is above zero then all pending sell trades are cancelled.
If MACD is below zero then all pending buys are cancelled.
IF LSMA is red then I cancel all pending buys signals – if green I cancel all sells.
Each day at 4pm London time I turn on my computer, if my equity is higher than the amount written down on my piece of paper then I close all opened positions and cancel all pending orders.
Optional Extra Rule.
It is possible to trade Swef by opening two lots every time we get a signal.
We close lot number one according to the normal rules.
We could set lot number 2 to break even ( optional )
We close lot number 2 when the LSMA turns against our lot number 2 trade.
