Hello traders and gamblers,
my name is Government(that is verbatim translation from my language to English) and welcome to my Global Macro FX and Long-Term Trading Strategy.
Looking over the threads on FF i noticed that most of the systems are mechanical i.e. if x line cross y line, xyz indicator is 10 then go short and so on. All of them are more or less short term in nature, from couple of hours to days at most. Since i don't like sitting in front of monitor for hours every day, looking at 15min chart trying to find 20 pips trade, i found out that long term strategies are far better suited for me. So let's look at the details.
The Strategy
First part of the name implies that we will use global macro strategy and second that we will hold our positions for a long period of time. Let's explain both. Global macro measn that we will be using eceonic indicators and fundamental analysis for our trade ideas. This means that we will take into account unemployment, gdp, debt to gdp and so. Since most brokers have CFD available we will trade FX, equity indices and metals. Because fundamental events take time to develop, we will hold our positions from at least couple of days to months and maybe a year. All this doesn't mean that we wont use technical indicators, i think that they are great at predicting larger trends and good for picking entry and stop loss positions.
Fundamental Indicators
Those indicators are usual economic indicators such as unemployment rate, GDP, housing and of course king of the all interest rates.
Technical Indicators
Support and resistance, RSI, Fibonacci levels, SAR, MACD, ATR and other indicators.
Entry and Exit rules
We will be entering when we have good fundamental reason to do so, but we will use technical indicator to to pick a entry pint and to see where price is going. Exit is when price reaches stop loss or when we think that our scenario has played out and that it is ok to close a position.
Important: we will enter trades with at least 1:1 risk reward ratio. Anything less then that doesn't make sense. Why would you risk 100$ to only get 50$?
Profit target
We will be targeting 20%(a bit more then 2000 pips) non leveraged return a year, since FX is in it's nature leveraged business you could use any leverage you want, but i think 5 to1 leverage per trade is max you should use.
Note
I am beginner FX trader so this is a test run of my strategy. In September i will open real account with as much as money possible (i am high school student) so don't expect some miracles. Thank you and good trading.
my name is Government(that is verbatim translation from my language to English) and welcome to my Global Macro FX and Long-Term Trading Strategy.
Looking over the threads on FF i noticed that most of the systems are mechanical i.e. if x line cross y line, xyz indicator is 10 then go short and so on. All of them are more or less short term in nature, from couple of hours to days at most. Since i don't like sitting in front of monitor for hours every day, looking at 15min chart trying to find 20 pips trade, i found out that long term strategies are far better suited for me. So let's look at the details.
The Strategy
First part of the name implies that we will use global macro strategy and second that we will hold our positions for a long period of time. Let's explain both. Global macro measn that we will be using eceonic indicators and fundamental analysis for our trade ideas. This means that we will take into account unemployment, gdp, debt to gdp and so. Since most brokers have CFD available we will trade FX, equity indices and metals. Because fundamental events take time to develop, we will hold our positions from at least couple of days to months and maybe a year. All this doesn't mean that we wont use technical indicators, i think that they are great at predicting larger trends and good for picking entry and stop loss positions.
Fundamental Indicators
Those indicators are usual economic indicators such as unemployment rate, GDP, housing and of course king of the all interest rates.
Technical Indicators
Support and resistance, RSI, Fibonacci levels, SAR, MACD, ATR and other indicators.
Entry and Exit rules
We will be entering when we have good fundamental reason to do so, but we will use technical indicator to to pick a entry pint and to see where price is going. Exit is when price reaches stop loss or when we think that our scenario has played out and that it is ok to close a position.
Important: we will enter trades with at least 1:1 risk reward ratio. Anything less then that doesn't make sense. Why would you risk 100$ to only get 50$?
Profit target
We will be targeting 20%(a bit more then 2000 pips) non leveraged return a year, since FX is in it's nature leveraged business you could use any leverage you want, but i think 5 to1 leverage per trade is max you should use.
Note
I am beginner FX trader so this is a test run of my strategy. In September i will open real account with as much as money possible (i am high school student) so don't expect some miracles. Thank you and good trading.
