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Which Trading System Or Strategy Is The Most Profitable?

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  • First Post: Sep 16, 2013 7:43am Sep 16, 2013 7:43am
Dear All,

I know some of us would have been around for a while; which strategy is the best and most profitable on Forex Factory from your experience?

Kindly share with us.
Only one, the strategy you develop yourself.
Me too have the same question: Which Trading System discussed under FF you use you follow the most?

I am glad to find FF and join the group. I am able to browse tons of Trading Systems over here. However how shall I choose which to follow? Where shall I start from?

Thanks for anyone which can guide me?
It will be the one that you develop yourself & can understand how it work. If your develop it yourself, surely you will understand how it works &
why it does not work at times. It is possible that someone will share their system or method & you can get your mind around it enough to make it
work for you, but think outside the box & develop your own method to the madness & you should feel that you have accomplished something on you own.

Just my view & nothing more.
_____________________________
There are 3 kinds of systems, technical, price actions, and discretionary. And i have gone through all three of them in that order.
In my opinion, pure technical systems are the most dummy proof,what we do is to follow the buy and sell signals, and you are going to have 2-3 indicators plus several moving averages on your charts. As my trading mature,I discover price action systems, in which we still gonna use charts as the primary trading tools, but just different in approach. we label out chart patterns, price channels, support/resistance instead of technical indicators. This approach requires a lot more discretion from the trader to make trading decisions.
Last but not least, the final approach is what a lot of career pros use. some called it fundamental+technical, some gave a name for it, calling it order flow trading. Not many resources on this forum for this kinds of trading systems. But there are several sites provide these educations, for example forexlive.com, orderflowtrading.com, and orderflowforex.com.
This is by far the most profitable to me, but still don't expect free lunch. Not saying you need to be an astro. physics to get it. Just need to time and patience to learn. PS, most of successful traders work a lot more than the regular 40 hours/week.
All in all, people pick up things and change strategies as they grow. system is only half of the game.
Quoting Angrychinese
There are 3 kinds of systems, technical, price actions, and discretionary. And i have gone through all three of them in that order. In my opinion, pure technical systems are the most dummy proof,what we do is to follow the buy and sell signals, and you are going to have 2-3 indicators plus several moving averages on your charts. As my trading mature,I discover price action systems, in which we still gonna use charts as the primary trading tools, but just different in approach. we label out chart patterns, price channels, support/resistance instead...

You have said it all
Thank you for all fast reply from acetrader, angrychinese (what actually make you angry? )

I understand my own system will be the ideal one, but before I "able" to develope system/strategy of my own, where do I need to start from?

When I browse to Trading System Subforum, there are many good system from what I see, Trading Made Simple, EASY, Jame16group etc.....but which one I shall start from? Consider me as newbie please....
Quoting Angrychinese
There are 3 kinds of systems, technical, price actions, and discretionary. And i have gone through all three of them in that order. In my opinion, pure technical systems are the most dummy proof,what we do is to follow the buy and sell signals, and you are going to have 2-3 indicators plus several moving averages on your charts. As my trading mature,I discover price action systems, in which we still gonna use charts as the primary trading tools, but just different in approach. we label out chart patterns, price channels, support/resistance instead...
Interesting take on trading. Well thought out.
Quoting nsn14
Thank you for all fast reply from acetrader, angrychinese (what actually make you angry? ) I understand my own system will be the ideal one, but before I "able" to develope system/strategy of my own, where do I need to start from? When I browse to Trading System Subforum, there are many good system from what I see, Trading Made Simple, EASY, Jame16group etc.....but which one I shall start from? Consider me as newbie please....
Just look at the charts, use the indicators you understand, or don't use any at all.
Just price action and support/resistance and maybe pivot points.
Buy when you think price will go up and sell when you think price will go down.
If you are wrong, learn of it and try to find out why you where wrong.
Trade real accounts, no demo.
When i started trading, i also tried some systems i could find online but no long time success.
I removed all my indicators and now i trade only price action and support/resistance, with success!
It will take some time to learn, but when you get it, you truly understand the markets, and that is what we want, right?
And off course watch out for news releases, use stop loss and have a good solid money management!!
Quoting Dkam
Only one, the strategy you develop yourself.
and/or the one you take the time to study and optimize yourself. As long as it makes consistent profit, who developed strategy doesn't matter at all.
"To hold, you must first open your hand. Let go." - Lao Tzu
What Angry said. If you truely want to make it in the markets, you'll need to learn more about "Order Flow" trading (as it's called) and Global Macro. Basically, it all comes down to knowing "what moves the markets" and taking advantage of this information. Unfortunatley, technicals nor fundaments move the markets which is why tech/fundie traders are always late to game. Those of us who understand the market and who understand what moves the markets are always a step ahead of the heard. Global markets (i.e. currencies) are truely a "thinking man's game".
Quoting Dkam
Only one, the strategy you develop yourself.
Unless it's the one someone else developed.
Open to new approaches.
Quoting nsn14
Thank you for all fast reply from acetrader, angrychinese (what actually make you angry? ) I understand my own system will be the ideal one, but before I "able" to develope system/strategy of my own, where do I need to start from? When I browse to Trading System Subforum, there are many good system from what I see, Trading Made Simple, EASY, Jame16group etc.....but which one I shall start from? Consider me as newbie please....
Here are my suggestions as to where to begin:

1. First understand the nature of the animal (market) you are dealing with. Fighting a fire-breathing dragon is not the same as hunting a fox. The forex market trades huge sums of money (in the trillions $) every day. It is dominated by relatively few large traders and us small guys are just cannon-fodder, our trades don't even make a blip on the trading screens.

2. Something like 95% (I believe it is even more) of small traders lose money so whatever trading system you will use must not do what 95% of other systems do. The overwhelming majority of systems are fixated on price behaviour and/or intraday trading. To be fair, they probably all work some of the time but not well enough to prevent a 95% bankruptcy rate over a reasonable period. Such systems neglect to consider what the major players are doing and their trades are driven by responding to subjective price patterns caused by the natural "noise" of the market or to short-term trends which often fail soon after they become evident. In other words, there is no real force behind these "noise"-based moves.

3. As explained above, the forex markets belong to the big boys. If you were a big boy e.g. a fund manager, how would you make money with your $2 billion fund? You need to buy thousands of contracts, would you try to buy them 5 or 6 at a time on 15 minute time intervals? Of course not! You would acquire your positions over weeks and months and then take the market for a ride for maybe 6 months or more. The point is that the big money (smart money) takes its time to make their huge profits. Even daily charts are just "noise" to these guys so I suggest that you consider using weekly charts. This means that you will take small positions with largish stop losses, say 200 pips or so, you can do your own research in this regard.

4. How to find out what the big players are doing? Study the weekly CFTC Commitments of Traders report which gives the futures positions of the big boys and how many contracts were added or closed out each week. This will help you trade with the price makers. Go Google.

5. There is very little of value in technical analysis. Moving averages are too late and indicators are misleading and dangerous. Chart patterns fail too often. Stop with the price behaviour fixation! Ignore it all except for one thing: Drawing straight trend lines and once you enter a trade make sure you use the steepest trend line you can draw as your exit i.e. when price crosses that trend line you exit the trade.

The combination of trading with the big boys and using simple trend lines on weekly data allows you to live a less stressful life, check the markets for only 30 minutes per week, and you will probably make more money than 95% of small traders . Our lifetime is finite why not spend it doing things you like instead of being stressed 8 hours a day trying to day trade? Your health can suffer leading to blood pressure and heart problems. If you are successful in your first few trades then instead of taking bigger and bigger positions in one instrument you should consider diversifying into other currencies and commodities.

6. Be patient. Let the market do the work for you.

Good luck to you
Quoting Jhig
What Angry said. If you truely want to make it in the markets, you'll need to learn more about "Order Flow" trading (as it's called) and Global Macro. Basically, it all comes down to knowing "what moves the markets" and taking advantage of this information. Unfortunatley, technicals nor fundaments move the markets which is why tech/fundie traders are always late to game. Those of us who understand the market and who understand what moves the markets are always a step ahead of the heard. Global markets (i.e. currencies) are truely a "thinking...
100% agree with needing to understand "what moves the markets" but also need to know "who moves the markets" and then follow them
Quoting Ttop
{quote} Here are my suggestions as to where to begin: 1. First understand the nature of the animal (market) you are dealing with. Fighting a fire-breathing dragon is not the same as hunting a fox. The forex market trades huge sums of money (in the trillions $) every day. It is dominated by relatively few large traders and us small guys are just cannon-fodder, our trades don't even make a blip on the trading screens. 2. Something like 95% (I believe it is even more) of small traders lose money so whatever trading system you will use must not do what...
Hey, great post. Its an interesting way to think. I took your advice and went on the CFTC website. I am new to forex (been trading and reading about it since april) and never knew much about the CFTC. I found future position of different commodities but could not find Fx. Any help? Thanks!
Quoting Ttop
{quote} 100% agree with needing to understand "what moves the markets" but also need to know "who moves the markets" and then follow them
In five easy steps, you've basically described my trading style.

Weekly/Monthly timeframe, CFTC Weekly COT Reports, Daily CME Group Volatility and Open Interest Reports, Strong Trendlines, and daily Global Macro news and data releases.

But all of this is useless without a solid grasp of "what moves the market and who moves the markets". Couple in some ideas of liquidity and sentiment will always help you stay on side with the big boys. Trade with them, not against them, is what I've always believed and continue to practice.
Quoting FxJersey
{quote} Hey, great post. Its an interesting way to think. I took your advice and went on the CFTC website. I am new to forex (been trading and reading about it since april) and never knew much about the CFTC. I found future position of different commodities but could not find Fx. Any help? Thanks!
On CFTC web site, click on "Chicago Mercantile Exchange" for forex futures info
Buy the rumor, sell the fact.
Quoting Jhig
What Angry said. If you truely want to make it in the markets, you'll need to learn more about "Order Flow" trading (as it's called) and Global Macro. Basically, it all comes down to knowing "what moves the markets" and taking advantage of this information. Unfortunatley, technicals nor fundaments move the markets which is why tech/fundie traders are always late to game. Those of us who understand the market and who understand what moves the markets are always a step ahead of the heard. Global markets (i.e. currencies) are truely a "thinking...
'Knowing' is a possible way to consistent profits. Another way is to accept (even embrace) one's own ignorance about the market's intentions. The way of knowledge can be very dangerous, because what most achieve is not knowledge, but merely an affliction called illusion of knowledge.
"To hold, you must first open your hand. Let go." - Lao Tzu
Quoting Ttop
{quote} Here are my suggestions as to where to begin: 1. First understand the nature of the animal (market) you are dealing with. Fighting a fire-breathing dragon is not the same as hunting a fox. The forex market trades huge sums of money (in the trillions $) every day. It is dominated by relatively few large traders and us small guys are just cannon-fodder, our trades don't even make a blip on the trading screens. 2. Something like 95% (I believe it is even more) of small traders lose money so whatever trading system you will use must not do what...
Hi Ttop,
Your comment above set to open eye for me!! Guide me to see the real reasons why most traders failed!
As a newbie, I search indicator and system around and download many indicators for my mt4 chart.
I try each indicator and sometime make me confuse which one to follow?!

Can you further explain your points below? Please correct my understanding if I m wrong.

1. In your opinion, intraday trading is dangerous.

2. Can you explain this statement further? "Such systems neglect to consider what the major players are doing and their trades are driven by responding to subjective price patterns caused by the natural "noise" of the market or to short-term trends which often fail soon after they become evident."

3. From what I understand above, you trade only one in a month?

4..Please explain further your statement : "By weekly chart....This means that you will take small positions with largish stop losses, say 200 pips or so..."

5. I wish to understand what Big Guys are doing: I went to CFTC and I can only get CME under Current Legacy Reports? Am I go to the right place there?

6. " Ignore it all except for one thing: Drawing straight trend lines and once you enter a trade make sure you use the steepest trend line you can draw as your exit i.e. when price crosses that trend line you exit the trade."---can you show example ? what is your method in drawing trend-lines? I often having problem with exit...

7. "The combination of trading with the big boys and using simple trend lines on weekly data allows you to live a less stressful life, check the markets for only 30 minutes per week" -- can you please explain further what do you "check" the market during this 30 minutes?

8. I heard about Orderflow, sentiment, liquidity...can someone explain these terms?

Thank you!!
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