NOTE: THREAD IS NOW BEING USED TO DEVELOP TRADING SYSTEM.
After trying many different systems from the FF Forum(all of them great system), Iv come to realize that these do not necessarily fit my trading style. As a result I figure the system that would best fit my trading style is the one I create for my self. So here it is. I do not have a name yet or anything like that as this is still in "beta". And instead of littering the systems forum with what could be another bunk one, i figured I would keep it in my personal journal until I have something worth presenting to the people. Feel free the comment on the system but realize this is a massive work in progress so trolls stay away.
How i created this system is I have basically compiled a lot of things I found from other systems on the forum that "fit my style".
Risk: 1-2.5%
Time Frames:
Entry is on the 4 Hour
Trend is determined by the Daily
Indicators:
5 Simple Moving Average applied to the open. All 3 Moving Averages are used to visually see what the market is doing, Entry signals, Exit Signals & Support/Resistance.
5 Simple Moving Average applied to the close.
20 Simple Moving Average applied to the close.
RSI(10) with the 25 45 55 75 levels marked. RSI is used to determine when to trade/exit signals.
Double CCI or Two CCI's(Trend CCI: 170, Entry: CCI 34) CCI is used to determine the Trend of the Market and is also used for Entry Signals.
DOUBLE CCI DOWNLOAD LINK:
When To Trade:
We Will Not Place ANY Trades if the RSI is ABOVE 75, BETWEEN 55 & 45, or BELOW 25.
RSI>75=Market is Over Bought
RSI 45-55=Market is Choppy
RSI<25=Market is Under Bought
All trades must be in sync with the Daily Trend!
Example for Buy: Daily RSI is over 55, Entry & Trend CCI are Above 0(opposites for shorts).
Entries:
There are 2 different entries. A Strong Entry Signal, and a Continuation Entry Signal.
Strong Entry Signal
A Strong entry signal is when all of the indicators align on the close of the same candle.
See Picture Below.
Continuation Entry Signal
This is an entry of the continuing trend. This entry can be triggered by the Trend CCI or the price crossing the moving averages. It is usually triggered by the price crossing the Moving Averages because both CCIs are staying below/above 0 in a strong trend, or it is triggered by the Trend CCI around reversals(when the Entry CCI is ahead of the trend).
See Picture Below.
Stops & Exits:
Stop Loss
You will place your stop loss either at the last swing high or low, or around the 20 Ma if its a good distance. NOTE your stop losses should rarely ever get hit. You should receive a signal to get out of the trade way before your stop loss would be hit unless there is a HUGE market spike(which will happen in some cases).
This is to protect capital. Even though I am risking 2.5% if the stop loss were to get hit, I rarely will take a loss that big because I will have received an exit signal before hand.
Exit Signals
There are two exit signals. A Conservative Signal, and A High Risk Signal(This is used if you think the price draw back is just a "Breather".
Conservative Exit Signal
This is used to conserve the pips you gain and is recommend for the low risk trader.
This exit is generated using the 5 Simple Moving Averages.
See Picture Below.
High Risk Exit Signal
This is used if you think the price draw back is just a breather and the trend is going to continue. Notice the difference if you were to use this exit signal instead of the Moving Average one on the same EURAUD Chart(Only 1 trade instead of 2).
This exit is generated using the RSI.
See Picture Below.
After trying many different systems from the FF Forum(all of them great system), Iv come to realize that these do not necessarily fit my trading style. As a result I figure the system that would best fit my trading style is the one I create for my self. So here it is. I do not have a name yet or anything like that as this is still in "beta". And instead of littering the systems forum with what could be another bunk one, i figured I would keep it in my personal journal until I have something worth presenting to the people. Feel free the comment on the system but realize this is a massive work in progress so trolls stay away.
How i created this system is I have basically compiled a lot of things I found from other systems on the forum that "fit my style".
Risk: 1-2.5%
Time Frames:
Entry is on the 4 Hour
Trend is determined by the Daily
Indicators:
5 Simple Moving Average applied to the open. All 3 Moving Averages are used to visually see what the market is doing, Entry signals, Exit Signals & Support/Resistance.
5 Simple Moving Average applied to the close.
20 Simple Moving Average applied to the close.
RSI(10) with the 25 45 55 75 levels marked. RSI is used to determine when to trade/exit signals.
Double CCI or Two CCI's(Trend CCI: 170, Entry: CCI 34) CCI is used to determine the Trend of the Market and is also used for Entry Signals.
DOUBLE CCI DOWNLOAD LINK:
When To Trade:
We Will Not Place ANY Trades if the RSI is ABOVE 75, BETWEEN 55 & 45, or BELOW 25.
RSI>75=Market is Over Bought
RSI 45-55=Market is Choppy
RSI<25=Market is Under Bought
All trades must be in sync with the Daily Trend!
Example for Buy: Daily RSI is over 55, Entry & Trend CCI are Above 0(opposites for shorts).
Entries:
There are 2 different entries. A Strong Entry Signal, and a Continuation Entry Signal.
Strong Entry Signal
A Strong entry signal is when all of the indicators align on the close of the same candle.
See Picture Below.
Continuation Entry Signal
This is an entry of the continuing trend. This entry can be triggered by the Trend CCI or the price crossing the moving averages. It is usually triggered by the price crossing the Moving Averages because both CCIs are staying below/above 0 in a strong trend, or it is triggered by the Trend CCI around reversals(when the Entry CCI is ahead of the trend).
See Picture Below.
Stops & Exits:
Stop Loss
You will place your stop loss either at the last swing high or low, or around the 20 Ma if its a good distance. NOTE your stop losses should rarely ever get hit. You should receive a signal to get out of the trade way before your stop loss would be hit unless there is a HUGE market spike(which will happen in some cases).
This is to protect capital. Even though I am risking 2.5% if the stop loss were to get hit, I rarely will take a loss that big because I will have received an exit signal before hand.
Exit Signals
There are two exit signals. A Conservative Signal, and A High Risk Signal(This is used if you think the price draw back is just a "Breather".
Conservative Exit Signal
This is used to conserve the pips you gain and is recommend for the low risk trader.
This exit is generated using the 5 Simple Moving Averages.
See Picture Below.
High Risk Exit Signal
This is used if you think the price draw back is just a breather and the trend is going to continue. Notice the difference if you were to use this exit signal instead of the Moving Average one on the same EURAUD Chart(Only 1 trade instead of 2).
This exit is generated using the RSI.
See Picture Below.
He who knows when he can fight and when he cannot, will be victorious.
