My remarkable system

Hey guys. Decided to post my holy grail system. It is built on purposes.

1) 90% profitable entries
2) Avoiding losses. As I posted yesterday a 50% loss needs 100% to be covered. Small accounts are being wiped out because of that. It doesn't have to be 50% loss 100% return. Even if you lose 1% in a day you need to get 2%. So if you lose 1% here and there and you are not good on taking profit either you have lost before even started.
3) Profitable exits.
You can't know where prices will go but entries can be easy. Exits are important for an account to grow well and fast.

I like trading the news but not as they happen I prefer the aftermath. Let's say that the euro news are very good today. The euro went up 50 pips and droped. Now it will probably have an up moment if you enter at the right place.

You have to spot a 123 setup. That means we have the price starting from point 1 and forms a top on point 2. Then it forms a bottom on point 3 which is higher than point 1. We use stochastic and MACD to confirm tops and bottoms especially with stochastics and macd is also helpful. You but when the first candle closes higher from point 3. I usually trade with 30 minute frames and I look for the candle closure on 5 min or 15 min frames (15 is more of a sure thing). With one hour time frames you can check the breakout at 30 minute frames and so on.

I buy if the MACD is bullish and RSI is 50 and bigger. To take profit I use My fibonacci expansion. On 0,618 I sell 2% of my position to cover my fees (with stock or options). On 1,000% I sell 30% of my position and I close the whole position at 1,618%.

Stop loss depends on the leverage but it is just for slippage. I actually close the position if the breakout fails and the candle of the 15 minute frame closes lower than the breakout point. When I see the first candle closing above my 0,618 I put my stop loss 1 pip above the price I bought so if I lose at least I lose with profit. When the 1,00% fibonacci is closed with a candle higher I move my stop to the 0,618 level. If macd or stochastics show a top 1 or 2 pips below my fib I close my partial position earlier and wait for the next one.

The more candles before the breakout the better the breakout. If you're not news aftermath trader you can use it as reversal pattern so if you use it to go long you have to identify a previous short. If you wanna use it to go short you can do the opposite.

If the fibonacci expansions match previous fib expansions of other moves you are already in the move so your take profit will be the 161.8 of the previous fibonacci expansion.

Since it's working nearly always. I use 40% of my balance in every trade and with high margins.

Always be aware of support and resistance levels in the bigger time frames cause you may fall in the middle of a support or resistance war. Also be aware of the fibonacci retracements in the bigger time frames.

MACD is less important in sideways moving markets. Be aware of that.

THE BIGGEST TOOL YOU NEED FOR THAT IS DISCIPLINE.

This plan is about getting into SURE trades. ANY account to go huge doesn't need risky tactics for huge profits. You will see your account grow smaller every day with those tactics until it blows up. For an account to grow big you need wins sure trades. That's why I trade so defensive.

And another advice. Market making brokers suck. Virtual dealer plug ins suck. An ECN broker is not that expensive and sometimes its cheaper. An Stp broker is also a good Idea. Market makers are stop hunting sharks. That doesn't mean ECN or STP can't be sharks. Before using a broker check this site. I actually found about it some days ago looking for a broker and I thank god for it.

Forexpeacearmy is the site.

I posted my strategy here to make some last minute tweaks. I just got 18 and I have been backtesting strategies short and long term strategies till I was 14. Thank god I was forbidden to trade so all I could do is backtesting and study. That saved me from bad strategies.

I decided to add RSI in my strategy after a saxo bank seminar which happens to have millions in lawsuits against them and I decided to use it.
RSI must be above 50 if you wanna go long. Since I don't know it's mechanics I have to ask what number must RSI be before I short. If anybody could help me with that I would be grateful.

Need a few labeled charts buddy to get my head around all that is going on here.. Thanks for posting

Danny

Hi, can you post an example,

rgds

Peter

This the same method in it's simplest format. The links will be helpful.

http://forex-strategies-revealed.com...ategy-123swing

You can tweak it as you like it. I placed many things in that system to make it bulletproof.

I use it as news trading system after the first effect of the news has passed. If you want it without news you use it mostly as a reversal pattern. If you use it to short something you have to identify a previous uptrend. I you wanna go long you have to find a previous downtrend.

90% profitable entry which is good. That way you can be more confident with your leverage. The stop loss though is tight. You can make it more loose if you want (the stop loss) but I prefer having a tight one. It has kept me out of some winners but it helps avoid losers which is why I love that system.

For a trader to succeed the vast amount of his trades must be profitable. If you win 1% to lose 1% on the next trade and that happens every time after some time you will blow your account out. You need winning trades.

I posted this trade here to get some feedback and have some of my questions answered. After I decided to add RSI and because I just use them for confirmation I can't figure out some things. My language is greek and english is a secondary labguage so that doesn't help either.

I buy with rsi above 50. If I wanna short on a breakout downwards what rsi number will confirm the downtrend?

I looked on my charts to apply your rules and it is "waouh" for the moment. I keep looking, thx for it !

Don't you mean "close higher than point 2"?

Higher if you wanna buy from point 2. That's correct. If you wanna short then it has to close below point 2. To short you have to wait for the starting line (point 1) to go to a bottom point 2 and form a top below point 1 and above point 2. When the candle closes buy. Using it with all of the principals above makes it a bad trade filter.

Still though I don't have the RSI data.

I buy with rsi above 50. If I wanna short on a breakout downwards what rsi number will confirm the downtrend?

There is a nice 1 2 3 thread here http://www.forexfactory.com/showthread.php?t=108544 even if I do say so .

With regards to RSI, 14 is a standard but 8 was used in the old fozzy thread which is useful. A tip to save on indi's, whatever rsi you pick use a ma of same size, its the same thing. Buy above ma same as buy above same setting rsi. Honest.

This is a 14 rsi 14 ema and I've highlighted some crossings. I'm sure you'll get the message.

Also by waiting for a crossing you'll miss some great set ups where for example 1hr gives a classic reversal candle for a buy but its below the ema/rsi. I use 1hr often to set up trades from 5 min.

So RSI above 50 buy, below 50 sell.

Sorry if I haven't got it right yet but english is my second language.

Your idea of using bigger time frames for spotting smaller time frame trades is great. I just wrote it down on my system notes.

If you spot a good reversal candle on the chart I've posted it would be a shame to miss a trade because price hasn't crossed rsi 50/your ema. So I wouldn't completely agree with only buy above/sell below.

I use that for avoiding losers. I have missed lots of good trades because some of my indicators didn't like them but that has kept me away from losers.

My apologies I don't want to divert your thread.

Good luck with your trades.

Thanks. The whole thing here is about avoiding losers. Most trader have a 50-50 win loss ratio. That means that 1win=1 loss. And most traders lose as much pips as they win.

Now lets say you play and you win 1%. Then you lost 1%, then won 1% then lost 1% over and over again. If you have a 1000 euro acount it will be wiped out in some weeks. Traders think they can offset their losses but 1 pip loss needs 2 pips to go back to where you was. 50 pips loss needs back 100 pips. That's how accounts are being wiped out.

So my system spots only winners. Because if I win 9 out of 10 times even if I won a measly 10 pips per trade without even leverage trade after trade after some thousand trades this account will be in the sky. And I use leverage so that's going to become even faster.

OK looking forward to some charts and trades. I still do not believe you need rsi in addition to macd but never mind.

Left and right lines show system set ups, the middle line shows rsi above 50 but macd not above 0 line. Although the histo column IS closer to the 0 line than prev column and IS above its red signal line.

Anyway whats important is not the trades missed necessarily but the trades won and pips banked.

Ooouch, I missed that previously.

Missed what?

40% of your acc on the line with every trade. Anyway enough I'm sorry I do not want to question your choices further.

In line with this gu 30 min suggesting buys only did you make any trades and if so where/why.

Syrvag you have gone very quiet here. I hope it wasn't me, I was coming from a good place. Nothing works 100% and with 40% at risk you need 2 wrong trades to close you down.

Anyway care to post some of your charts.