Easy system I trade each day

Rather easy mechanical system with decent profit ration. It uses another system from FF that i found however that thread now seems to be dead. However i believe the system has potential if used correctly and you stick to the rules with absolutely no deviation.

However you can easily set your own rules depending on your type of trading style.

At first i will be showing just recent charts and trade set ups. I will then hope to show live trades or trades before they are active later on if the need arises. There is just 2 indicators which i will post later.

I will show you how i use the indicators however you are free to use them in anyway you wish. I use them with a 20 SMA filter only.

The first char i will show is the USD/CAD from last Friday. Not only a good day for the system but it always makes it very easy to show the method.

If you use both the indicators then there really is not much you need to know. Just wait for the arrow to appear showing the direction to take the trade and then decide to take it or filter it out to your preference.

You can use no filter and take all singles or filter as you wish. As i said i filter with 20SMA.

It will work on any time frame and the SL and TP is also to your preference. I personally only take signals with a 40 or less SL.

For my TP i use a manual trailing SL which i move manually when the the price breaks a new level on my chart. I look at the levels at each 250 move. I will also post this level indicator.

System Rules:
The original system rules can be found on the link in post #4. I however use the signals somewhat differently. I will explain how i use but you are free to change this as you feel comfortable with your trading style.

Basic rules:
If you apply the indicators to your chart, then you will be notified each time with an Up or Down arrow signaling the trade opportunity. Very simple. However trades as with any system do need to be filtered. This is a trend trading system and although it will still work ok if price is ranging and the range is big enough however it works best in a trend.

My Rules:

Opening Trades:
- I trade the 15min chart and i currently watch GBPUSD, EURJPY, USDJPY, USDCAD, AUDJPY, CADJPY, AUDUSD, EURAUD.
- I trade the Asian and London sessions.
- I only trade if the signal candle closes above or below the 20 SMA. That is to say once i get a signal for long or short, i just check the chart to see where price is and then place a pending buy or sell below/above the price a little if the 20 SMA rule is met.
- I also will only take a trade if the SL is 40 pips or less. For the SL placement i just look at the previous High/Low point.
- If the NonLagDot indicator Dot changes to the opposite colour before my pending order is triggered then i cancel the order.

TP and Closing Trades:
- I use a manual trailing SL.
- With the SweetSpotsGOLD indicator placed on my chart with a "Sub Level" setting of 250.
- When price closes above or below one of the levels then i move the trailing SL up to the last level it crossed and keep doing this until price returns. If my trading day ends and the order is still open then i just change to an automatic trailing SL of about 40 pips.

I will wirte the steps with pics to make it easier to understand in another post as this one is getting long and boring now...

Indicators:
Nonlagdot Alerts:

With MA Filter (By LM)
A great new version created by L.m, Thanks L.m

Nonlagdot:

Template:

Just place Both the Nonlagdot and Nonlag alert indis in your indicator folder. You can get alerts via email or MT4 app on your smartphone too.

Additional Indicator I use for Trailing SL:

So the first example is the USD/CAD last Friday on the 15 min chart. It ended up being 2 win trades (Well actually three but ill get to that later), 1 loss and 2 invalid with a total of about 150 pip profit. And just take note that this was a good day. I am not claiming every day or every pair will win nor am i claiming each winning day will rain down copious amounts of pips.

Which thread is it you are refering to ? Any link here in the FF.com ?

This was the original thread.

http://www.forexfactory.com/showthread.php?t=571026

Nice system , waiting for ur system .

thanks

So here is a good example from CADJPY last Friday for opening or invalidating trades and using the manual trailing SL. This day showed 4 winners ending with about 180 pips.

- As you can see the first signal of the day was invalid as it was a buy below the 20SMA.
- The second was valid as it was a sell below the 20 SMA and also the SL placement (Previous High) was less then 40 pips.
- I will take all signals for the trading day that match my criteria so this day there was a further 2 signals matching the criteria.
- Manually trailing SL was moved each time the price broke though a level and closed beyond it. SL is not moved to the level it just broke, but the previous level. Similar to saying it is a manual 25 pips trailing SL.



This next image for the same day shows a magnified view of another type of invalid signal. The signal was originally valid so a pending buy order was placed however the next Dot of the nonlagdot was red so this invalidated the last order and it was canceled. One more thing that invalidates a valid signal is if the price closes on the wrong side of the SMA before the order has been triggered. So if you have a valid Buy signal above the 20 SMA and you place your pending buy but the next candle or after a couple of candles the price closes below the 20 SMA then this pending buy is canceled.

What is the value of the red MA and how do you use it?
Thanks

Hi there, sorry i probably should have removed it from my chart. It is a 50 SMA that i was using as a test to compare with the 20 SMA. At this stage though i i am just comparing the two and it has no relevance to my trading. So far though test are showing that both are good. Some signals taken with the 50SMA seem better then with the 20 SMA but some times the other way around. So test are still inconclusive. However i am not using the 50 SMA (Red Line) to decide trades at this stage.

Just something to add about the Indicators. The NonLagDot indicator does not repaint however it does not finish painting until the candle has closed. So, you would not look at the color of the NonLagDot whilst a candle is still open.

Secondly, the NonLagAlerts indicator will repaint if the indicator sees the next candle to be valid. However it is very very rare that i get an order open and then see the indicator repaint. Usually it will repaint if the pull back is continuing and so the price is going in the opposite direction from where the pending order is. This can be a good thing as it can give you a tighter SL.

Nonlag dot value - 20?
Thanks

Yes just the standard settings.

Indicator settings:

Nonlagdot:

NonLagAlerts:

SweetSpotsGOLD:

interesting system thanks for sharing mrhigurashi

No problem

Hi MrHigurashi, thank you for sharing, I have a question:
Are the signals appear mostly in quiet market like in Asian session?

Hi.

Yes, i seem to find most the set ups seem to happen within the Asian session. Signals can also appear in the London and even NY sessions too though. The moves themselves dont seem to come till the London or NY sessions though. It is something ive tried to track but it seems almost impossible as it changes each day and news releases can make this happen.

Some days the moves happen during Asian session, sometimes later, sometimes they dont come till the next day. But i find most set ups during Asian session. Depending on where you are located and your trading times, the Late NY/ Early Asian session may be best for signals.

There are also some set ups at the end of NY just before Aisan session. What i do there is i will look in the morning during the Aisian session if there is any set ups that occurred during the NY session that i could of entered or would have been triggered if i can still get into them.

Below is a good example. The Blue shaded area is the NY session. As you can see there was a sell set up. However, even though i missed it the current price still allows me to get into the trade or at least place a pending order. I find that the set ups and moves can happen anytime and this strategy works better the more trades you can catch.



Hope this makes sense.

Thank you MrHigurashi, I will try this system on demo

I don't like trading in Asian session because the market usually slow and make it difficult to reach the profit target.

Yes, well this is what i always thought too. The moves generally happen during London and later but set ups are rather random.

But like any trading method you just need to have a go and see what is comfortable and see what works with your own trading style.

I trade this strategy on the 15 min chart as i see it offers up more signals and more opportunity. However with more signals can mean more noise as well. So i would say although i prefer to trade the 15 min chart it is somewhat aggressive. If your are a more conservative trader then perhaps try the 30min charts and up. That may also be helpful for those who have limited time to trade.

May I suggest uploading your template to Post #1 and make it easier on folks to get up to speed and follow along.
Green pips to all.
Cheers!