Multiple & Modified Trading System

Hi,

I've started this thread to share my trading systems and experiences with you, who are visiting or subscribing my thread to follow further. The main purpose of my thread is more than helping others than improving myself and keeping some of my trading records. So that, I can review in future. But, anyone who are interested about this thread are most welcome and I'll try my level best to answer if anyone needs to know something about my posting.

First of all, I must mention that, I'm not that much experience enough in this trading and still trying hard to learn and establish myself in this market as a skilled trader.

I do my trades on technical analysis and completely ignore any kind of fundamental analysis as it seems very complicated to me And I do learn various techniques from various expert traders forum posting including FF, which I use to implement in my trading with few modifications to suit my personality and psychology. So, if anyone find my techniques familiar, he can thin that, I've copied and learn from his posting. Pretty sure, it could be! But definitely, I'll try to provide the link from where I've taken my the basic idea of my trading techniques.

Today, I've just started the thread and I'll start posting in coming days.

Thanks to you all and wish you success in Fx trading.

This is the most basic strategy in Fx trading. After learning and using many techniques and indicators, I came to a final decision that the most simple strategy and much less indicator can give me the expected success.

I use this strategy for long term trades e.g. daily and weekly charts. It can also be used on H4 time frame, but what i found that, using this strategy in shorter time frame will increase the risk of SL hit. So, I use this only in daily and weekly chart and till now I got much positive result.

Here I'm going to describe this simple strategy:

Chart Setup

1. 50 SMA (Close Price);
2. 10 SMA (Close Price);
3. 20 SMA (Close Price);

Few rules are there, which must be follow while trading:

Rule-1:-
Price Action - For long trading, bullish engulfing and for short trade, bearish engulfing. It can also be known as Sgnal Candle.

Rule-2:-
Trend 1 - If the price action is above 50 sma, then the trend is overall bullish and below 50 sma is overall bearish.

Trend 2 - If the 10 sma is above both 20 and 50 sma, then the trend is perfectly bullishand if the 10 sma is below both 20 and 50 sma, the trend is perfectly bearish;

Trend 3 - If the 10 sma is above 20 sma but below 50 sma, then the trend is temporary bullish and if the 10 sma is below 20 sma but above the 50 sma then the trend is temporary bearish.

Understanding this trend is very important to set the target profit. To become safe side, it is advised to open trade when market is in perfect bullish or bearish trend.

Rule-3:-
Trade Entry - Enter the trade immediately after the signal candle complete and next candle starts. Bullish engulfing candle is for long trades and bearish engulfing candle for short trades;

Rule-4:-
Stop Loss - Stop Loss must be place at 1 or 2 pip high above the signal candle or previous candle of the signal candle (whichever is higher) for Short trade.

For Long trade, Stop Loss must be place at 1 or 2 pip below the signal candle or previous candle of the signal candle (whichever is lower).

Rule-5:-
Trade Management and Position Size
It is wise to set Stop Loss/ Target Profit in 1:1 ratio and 2% risk of the account balance.

However I use to set my TP as below settings:

--> Perfectly Trend favor condition: 1:2
--> Overall Trend favor condition: 1:1
--> Temporary Trend favor condition: 2:1

It is completely depend on a traders account balance and risk taking decision. But, important to mention that, if trend is in favorable condition, then chance of winning a trade almost 100%

Alternate Signal Candle
It is hard to find proper engulfing candle or signal candle frequently. So, a alternate type candle can be considered as signal candle and it is also as much successful as the proper signal candle.

For Short trade, the signal candle must close in the bottom 25%of its range and its high or the previous candles high must be the highest high of the last 5 candles.

And for Long trade, the signal candle must close in the top25%of its range and its low or its previous candle low must be the lowest low of the last 5 candles.

Please note that, if considered multiple currency pair for trading then it is possible to find proper signal candle on H4, daily and weekly charts. I've used this system in EUR/USD, USD/CHF, GBP/USD, USD/CAD, NZD/USD, USD/JPY, CAD/JPY, CHF/JPY, GBP/JPY and EUR/GBP currency pair and get 100% success till now.

Important Note: Don't use this system on AUD/USD currency pair and any commodities trading. It might now work.

I've searched and found a suitable strategy for AUD/USD pair. Once I get success, I'll post that particular system in this thread

Thanks giving: I've got the above trading idea from one of FF member (60 minuteman) posting and modified as per my own personal suit. Thanks to 60 minuteman. Anyone interested can also visit his posting on below link:
http://www.forexfactory.com/showthre...45838&page=132

It is a sample of temporary trend favor condition in NZD/USD currency pair. I've opened a trade today with 2:1 risk taking factor. I'll update, once it hit the SL or TP....

It is a sample of perfect trend favor condition in USD/CAD currency pair. I've opened a trade today with 2:1 risk taking factor initially, but I've a plan to make it 1:1. The main reason of 2:1 is the price action is currently chopping up/down of 50sma. I'll update specially about this trade because it may require to take few decisions on its way to SL or TP.

If you ignore fundamentals you will never become truly successful trader.
Fundamentalist comes 1st technicals are residue left over foot prints of what already has transpired.Think what moves the market!
News,Major events,Major S/R break etc.
I will never trade without checking out the news!Never! While your SMA can say buy but not knowing Aussie is about to cut interest rates could cost you a lot.Simple fact like that could pripare you for Short position not long.
Examples are many.I learned a hard way after losing so many trades being on the wrong side of news.
Good luck another thing don't relax on education.Think of it as important as breading.

No, I actually don't dare to ignore fundamentals, but mainly focus on my charts. Frankly speaking, I'm very much weak in fundamental analysis and already mentioned in my first post of my little experience . In fact, at the very beginning of my trading, I use to depend on news, but my account burnt several times . Then I started focusing only on charts.

But, I tried follow other experienced traders comments on FF and other forums and try to understand and learn their analysis.

I would very much appreciate you if you share your fundamental analysis with me and how if effect on price action.

Thanks to you a lot for advise and concern.