Genuine 5m 4R/R system

Ok guys lets get stuck into this.
I call this THE POINT TO POINT SYSTEM, for obvious reasons as you will see.
I will start by going over the basic rules that make this system, thats the easy bit.
The hard bit is learning what for many, who are used to trading with indicators, will have to learn how to trade properly and not just blindly act when a lagging indicator tells you to.
I"ll cover each section individually.

PAIRS;
we trade mainly on the yen pairs, but can be traded on any pair that has a small spread.
both my wife and i trade this system together with 4 computers monitoring 2 pairs each, you can do it on one computer it just means changing screens a lot which i find very annoying.
The spread is very important because we are using such a tight stop anything more than a 1.5pip spread will cause you to get stopped out too often, fortunately my broker offers spreads anywhere between 0 and 1.5pips on all the majors.

MONEY MANAGMENT;
Very important not only for your survival but peace of mind, never risk more than 2% on any trade, for example if you had a $1000 account with a 5pip s/l you would only ever be risking $20 per trade, and we are working on a 1 to 4 Risk /Reward ratio so a win will generate $80. We do not reduce the trade risk after a loss we keep it at 2% percent of your original balance as loosing runs dont generally last very long, the longest i have had was 6 from memory and even with that it only takes 2 winning trades to get back in the black .
Some may think that chasing a 1 to 4 R/R is very ambitious and very often just miss out on getting there and may be tempted to go with a 1 to 2 or 1 to 3 R/R, but if you fall into this trap you will never realize this systems full potential. And i will show you a way later where it is possible to even exceed 1 to 4.
Cont.

I'LL do is this in mutiple posts as my computer has a bad habit of deleting my typing.

One of the reasons why we can aim and often get the 4 R/R is by being very specific of what and when we trade.
We only trade when the market is trending with good volume. Do not trade flat market it is just an exercise in frustration with lots of losses

TIME FRAMES

This system will work on any time frame, but we have chosen the 5m because this gives a reasonable amount of entries per week and the 5m is reasonably stable when traded in the right conditons. If you chose to trade it on a larger time frame you will need to alter your trade parameters, for example if traded on 15m your stop will become 15pips and T/P of 60pips and you will probably be waiting a long time to find decent entries.

ENTRIES

getting your entry right is critical to this system and may take some practise,once i start posting some charts it will become clearer.
When we see a trade set up forming we set a BUY STOP at the highest point plus your spread and your 5pip S/L at the same time and wait for the price to trigger your order ,once it starts moving in your direction you Put your 20 pip T/P on . At this stage do not walk away from your trade ,you need to manage it. I have found it best not to move your S/L to breakeven untill it is 75% to your T/P, you need to give it room to move . Many times you maybe tempted to go to breakeven at 30 or 50 % only to find the market retraces back to your entry and stops you out and then continues straight back up to yourT/P. Having said that sometimes when the market is just not looking good at all i will just pull out or move my S/L up but dont get into the habit of doing this as you will become a very nervous trader.
With some of these entries ,because we try and time them just as they are about to take off ,sometimes they really take off and dont even give you time to put your T/P on ,in this case if the price goes straight past your 20pips, quickly move your S/L up to the 20 pip mark a lock that profit in ,and sometimes you will get lucky and just go for a lovely profit ride.

NEWS

Usually not a good idea to get into a trade near major news, but if you are and you are in profit tighten up your stop to Breakeven and if the news goes in your favor it will skyrocket you to the finish line.
Cont;

The aim of the rules in this system is to try and put as many things in your favour as possible and give us the best possible chance of a successful trade, but there are other things to take into account as well ,as this is basically a support and resistence method , we need to look at the chart we are trading in many different ways to get a broad picture of what is going on and not just blindly take a trade because because the entry looks good, things i do is maybe to squash chart up a little to get a better perspective of whats going on and also look at the 15m and 1 h chart to see if there is actually room for this trade to move to your T/P if there is major resistance or maybe a round number just half way into your trade you need to manage that or even worse if there is 0nly 5pips before these obstacles you may reconsider even taking the trade as it might bounce straight back to your S/L very quickly.

I have probably covered the basics ,if i have missed anything obvious please let me know and i will clarify it for you.
Next step is to show you some charts and put this whole thing together so it makes some sense.
But before i finish my rambling i need to put this DISCLAIMER in.
I am not getting any financial reward for posting this system ,it works for me ,it may or may not for you , if it doesnt suit your trading style just move on to the next one but i will not be held responsible for any losses you may encounter using this system. if i or any of the subscribers to this forum are nice enough to advise the other suscribers of an upcoming trade setup and you enter and it fails ,just suck it up ,you take responsibility for your own trades and your own trading decisions, if we all work together as a team we will all benefit and get access to a lot more trades than any of us could individually.

Ok lets see how we go with posting charts this may take some time ,so just talk amonsgt yourselves while i work out how to do it.
Any questions so Far?

no questions, waiting for your charts. tx

Just ignore that post above it was just a test chart, seems it wont let me post charts ,any ideas how to do this

You have the option to attach files at the bottom of the "reply" field.

Yes, either upload a screenshot or make a "Print screen" of the chart and edit with some explanations in for example paint or something.
Then attach and put it in the post!

Test chart
http://www.forexfactory.com/attachme...1&d=1401542046

Subscribed,

I only trade the 5 minute time frame and I am interested in potentially adding another trade set-up!

Thanks....

ok that seems to be working ,but my brain is going to jelly with this flu i seem to have caught today, will post proper charts tomorrow,

I think you need to specify what broker you are using as this M5 will be very broker dependant like you say in terms of spread wise but also spread floating, fixed, news gap spread etc. 5 pips is no wiggle room for anything at all. But very pro on the 1:4 Risk:reward like it! just need a 70% win rate and will be all good~!!!

70% ???

Rtm if you win 2 out of 10 trades or 20% with 1:4 risk/reward you break even.

Winning 3 out of 10 trades or 30% is a 50% return on investment which is very high.

I'm in.

I'm in,
love the 5m,
hope you're feeling better.
anticipating the lesson.

Get better, can't wait for more information. . .
I have ten different jpy pairs and obviously some spreads are tighter than others, depending on the pair.
What surprised me is the fact on how much liquidity there is on some of these pairs.

subscribed.

Do you think I can not do math?

Sorry, you're right! Let's win 70%.

i am in...looking forward.thanks