The White Eyebrow Trading System

For want of a better name, I've dubbed this method 'The White Eyebrow'.

It's certainly not anything new, I'm sure variations of it have been posted heaps of time before.

I have yet to trade this live but will forward test it next week as time permits. I don't know how viable it is short term or long term but looks alright with manual backtesting.

I've only looked at EUR/USD but other pairs could perhaps be used.

This method came about from looking at price patterns and PSAR. on the 15minute timeframe, while trying to keep things nice and simple.

Here are the rules:

1. Open up a 15min chart of EUR/USD.
2. Draw a vertical line at 8.00-8.15am GMT bar. (my charts are GMT+1 so I draw the line at the 9.00am bar)
3. Place PSAR with Step 0.02 and Maximum 0.2
4. Identify the POTENTIAL Trigger Bar / look for a trend change. For a new long trend and an opportunity to buy, PSAR dots have to switch from being ABOVE price to BELOW price.
5. IF the Trigger Bar has closed bullish AND the previous bars - Bar 1 and Bar 2 are also bullish, then enter on a break of the trigger bar.
6. Stop = 20 pips, Target =20 pips.
7. Trade maximum 2 times a day. If the first trade is a loss, no more trading. Only enter a second trade if the first one was profitable.
8. If the Trigger Bar has a very long range, be wary of using it

charts to follow

Long example.

Possible trend change as shown by PSAR switching from above to below. Enter on break of first bar ONLY IF the previous 2 bars were also bullish.

Example Short - TB formed when PSAR switched to being above. 2 previous bars were bearish. also had lower lows, lower highs - stronger signal.

There is the potential for slightly different entry criteria.

If Bar 2 is an outside bar, example a BUOB, but bar 1 is a bearish bar, and the TB is bullish, then a long entry is still valid.

example of a BEOB. Note - outside bars appear to be stronger if they are already coming off a previous high or low. In the example below, the bearish bar is below a previous swing high.

example of 3 winning trades. Notice the first trade has uite a long range. Still would have been profitable but discretion is reuired.

I appreciate all constructive comments! Looking forward to next week where I can test this live.

I'd be happy with 1 profitable trade a day!

another one

Took this trade on USD/CHF yesterday. Have decided to alter Target to 30pips instead of 20.

Here you entered on the TB (psar signal downward) instead of waiting until price crossed lower than the close of the TB. Right?

If I'm looking at the chart right...

hi bnbb2004, I placed a sell stop 1 pip below the low of the trigger bar. The order was executed 4 bars later.

Nice simple strat. Look forward to trying tomorrow. Thanks for sharing

There were quite a few good setups on Tuesday but I wasn't home to take them!.

Just got home and see potential trades on USD/JPY and USD/CHF IF both 15 min bars close bearish.

USD/CHF triggered!

and UJ triggered as well. 20 pip stop loss, gonna use a 30 pip take profit

potential trade on EUR/USD once this bar closes in 5 mins

I'm glad to see someone else using PSARs. I don't see much talk of them here but I used them on the 1m EURUSD chart with success for a few months and then things changed and it started to take losses. I switched to cable and it was more effective but still, my strategy was not great so I ditched the indicator and switched to something similar. I still believe in PSARS for simple trading, especially on the lower time frames.

hi Roofx, I'm very new to using PSAR but am liking them on the lower timeframes too. What did you switch to?

Took a while but that U/J trade above just hit the target!

USD/CHF finally reached target. EUR/USD triggered but was stopped out. 3 trades today: 2wins, 1 loss.