Self Made Trading System Review Plz

Hi,

I hope someone more experienced can guide me to constructing a decent simple trading system.

I am an intra-day trader mostly trading 15 min timeframes on the Eur/Usd only. I look at the swissy and cable for correlations only.

My main trading analysis is based on previous supply and demand zones on the 4/1/30 min timeframes I look for confluences.

I go with the trend always. I use a point based rating system which I base my risk to reward ratio on. The more evidence I have to enter a trade the more I risk but no more than 3% of total account. I look for 2 profit levels 1 at 20 points and 2nd at 40 points moving my stop to breakeven after 20 points as capital preservation is my number 1 goal even if it takes longer to become profitable.

I wait for a rally in price and wait for a double top/bottom enter on a retest of the high/low's at the necklines and look for candlestick formations. I use Fibonacci cluster zones from the W/D/4/1 and also pivot clusters I increase/lower my risk when I see weekly or monthly pivots approaching price.

I use the 5 min chart to get a more precise entry/exit/stop price and warning for the 15 min timeframe. I use the 1/4 for the current trend look at the last few candle bars.

My arsenal of tools are: harmonics ABCD, Psychological Levels RSI, MACD, MA's, Trend lines, Pin Bar Reversals, Bolly Bands, Alligator.

I also use a couple other systems within my own strategy if they confirm if I add them on if they don’t I leave them. I use the Pip Accumulator with trend probability, Siddus System, SRS Trend Rider and Ultra Trend line system as extras.

I do not clog my chart up with all these indicators and price action points but keep them separate to make it naked as possible.

Personally, I like the idea of going total naked using support and resistance only, but it makes me shiver that I haven't done my analysis properly I am comfortable on the idea that there is a confluence/cluster zones rather than only S&R zones.

The only areas that I feel I can improve on is moving to the 4 hour charts I would like to, but I can't wait that long I would rather be stopped out in 1 hour than waiting 4 hours for a winner sorry but that's me.

I am reading as much as I can about price action and watching tutorials learning new things, but I am at my wits end about to pack it all in as it’s not working for some reason yet I have a glimmer of hope as my account is not blown up yet. I do get burnt out on most days with information tried to take a back step but trading is far too attractive to stay away the computer for a few days.

If anyone can add or erase anything that you feel will help my system feel free too as I am out of ideas.

Thanks for reading.

reading what you have wrote sounds like you have already got your system

I'd erase most of that, you should be able to tell the trend from the candles. Try a pivot point ma (3 sma of typical price) around strong round number s/r. You can use a grid drawing tool to mark all the round numbers or draw your own strongest round numbers by zooming out a daily or weekly chart. The strongest signals will be doji reversals and hammers/stars. Nothing is completely guaranteed but you can increase your probability.

Pls. post charts to ease understanding.
Cheers

How long have you done this? Is it still working? If you have a losing month or two , you might consider other methods
Btw , i found it easier if you start trading H4 tf first and compare those with small timeframe..who would perform better?

Too much hocus-pocus in my opinion.

I've never seen any studies indicating that fibs, pivots and "psychological" lines actually work.

SR is a mixed bag and is purely discretionary and subjective. No two people draw them the same. The same goes for trendlines.

I believe randomly drawn lines will do the same thing as all of the above.

Candlestick patterns may work. I've seen a few reports that some patterns work but have never proven it to myself.


Here is a system that works and is profitable. It isn't mine but I have been following it for months. It's the best thing I've seen in the years I've been trading. Use the spreadsheet provided.

http://www.forexfactory.com/showthread.php?t=296776

You have too much instruments. I think most of them give you the same information. Just decide, what do you want to trade - trend, or S/R or braekouts. Then take only a 1-2 instruments and use them consistenly.

Try to post here your decusions for trade and we can help you, may be

There is way too much in there for anyone to be able to analyse it without spending a huge amount of time on it.

And there is far too much in there for it to stand much chance of being successful. You are mixing a lot of price action with a lot of indicators with a lot of timeframes, you don't stand a chance. By the time you have tested and analysed all those options and decided it does not work. you will be in your grave.

If I were you I would first decide if it is price action or indicators that you want to trade, indicators are rarely much use in a successful trading system, but can be useful to confirm or exclude an opportunity.
Then I would look at what tools you need to support your chosen style and timeframe and keep it simple.

regards

I too would cut out some of the fluffy indicators, but reading your post you seem to be grounded in the basics. Just need to keep trading.

I think pipanator has a good system for beginner, I suggest you to keep move on, ... for me discipline is number one above all. Trading system without discipline is useless.

thanks for share your system
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strategy of the day

simplicity is the best policy... but again it's just me

have you tried watching price action for at least 2 hours with no interruptions... since you're only trading EU/USD then best if you do it during london opens...

do this for at least a week...

you will feel what price will do next or where it will go...

try it, maybe it will help

i mostly disagree with everything posted here, but that is just me.
Dongsky although in my view he is a good trader, is presenting simplicity. However simplicity, as i previously stated in another thread, is nothing more than complexity internalized into a subconscious level.

THERE IS NOTHING SIMPLE ABOUT THE MARKET, and there WILL NEVER BE.

you need to study and learn what drives the markets.
the internal structure, the players, the macro economics behind it, and many many more things.

here is an analogy, when trying to forecast projections, be it of populations or finance we encounter SEEMINGLY random information. The key is this information derives from circumstances that are logical.

however logical circumstances do not always lead to a desired or expected outcome.

take a population of lions in the Savannah, this year there is less rain than usual, and the temperatures are reaching record highs (hypothetically), human populations have pushed pray animals away from usual territory, what happens to the lion's population?
your estimation is that it will decrease
by how much and when? this is very hard to pinpoint, but you can build a model that can help you forecast these events, by knowledge of statistics, lion behavior, understanding prey animal behavior and the impact on birth rates etc......

now what happens if the population of lions actually increased and it was due to the substitution of human meant as opposed to prey animals.

this was unpredictable,but there was a possibility.

just like the market seemingly random data, for which you can build a model of probabilities, which in my opinion needs to be based on statistics, logic, and knowledge.

it is possible to build a system, however you still require knowledge and dedication to know
when it works
% of time it works
and why it works

there are no short cuts.

The market, no.....but we're trading, which itself is a very simple concept.

Really, you need all that to trade?

In my opinion most of that information and knowledge often influences, confuses, and (intentionally?) misleads more than it helps, we will never be privy all the information so most times we're better off with none!

Well in trading terms complexity doesn't seem to perform any better than simplicity so we may as well go with simplicity, it's easier

Agreed, trading systems are like evolution, the species that survive long term tend to be very simple and adaptable to a lot of different solutions. Ignore all the genetic algorhythm/RSI/CSI etc nonsense and find something with less than half a dozen different parameters that is based on time tested market principles (the trend is your friends, let your profits run etc).