forextrading's Blog

The basis of this system is very simple and has proven to be profitable, though I am adjusting the money management/profit targets.

Overview

This is a pure "set and forget" system where trades are placed at the same time everyday. The option is also there for those inclined to monitor their positions to adjust stop levels as profit targets are reached. Please note that there is currently an Expert Advisor being created that will automate the trading of this strategy, thus keeping to the set and forget objective. Please click on the paperclip at the top right hand side of the screen to find the current versions.

By setting multiple profit targets we are exercising money management, while aiming for 95 pips profit from a 50 pips move in price. We will simply be placing orders 5 pips above the previous days HIGH and 5 pips below the previous days LOW.(Actually, it's more like the previous 17 hrs at 5 pm EST.). Use a 30 pips stop loss for all orders. Orders are placed on Monday, Tuesday, Wednesday, Thursday and Friday.

Execution

1.) At 5pm EST open the 1hr chart (2hrs b4 start of the Asian session) of USDJPY. For those whose brokers spreads are still wide at 5pm EST on Sunday (which is 7am my time on a Monday here in Brisbane), in order to avoid the wide spreads you may need to wait until they reduce to normal before placing the orders for the day. I typically have to wait until around 8pm EST.

2.) Use the high and low of the previous 17hrs. For Mondays orders go back as far as 00:00 EST on Friday for high and low.

3.) Open a total of 6 PENDING orders (for each pair) including 3 BUY STOPS and 3 SELL STOPS that expire within 24hrs (I use 18hrs) as follows:

Buy/Long Orders:
1 - Entry = HIGH+5pips, Take Profit=15pips, S/L=30pips
2 - Entry = HIGH+5pips, Take Profit=30pips, S/L=30pips
3 - Entry = HIGH+5pips, Take Profit=50pips, S/L=30pips

Sell/Short Orders:
1 - Entry = LOW-5pips, Take Profit=15pips, S/L=30pips
2 - Entry = LOW-5pips, Take Profit=30pips, S/L=30pips
3 - Entry = LOW-5pips, Take Profit=50pips, S/L=30pips

That's it!

Once you have placed your orders you are free to go and do something else with your day as this strategy does not require you to be monitoring the trades. Though, as already mentioned, to maximise results you may choose to adjust stop levels when profit targets are reached.

There can be 4 possible outcomes after either the long or short trades are triggered:
1.) All 3 profit targets are reached for a total of +95pips.
2.) The first 2 profit targets are reached (+45pips) and the remaining lot is stopped out (-30pips) leaving a total of +15pips.
3.) The first profit target is reached (+15pips) and the two remaining lots are stopped out for a total of -45pips.
4.) All 3 lots are stopped out for a total of -90pips.
Additional to this is the variable outcomes of when both the long and short trades are triggered.
Also note that for those so inclined to monitor the trades, stop levels may be adjusted on remaining lot/s to protect already achieved profits. Trailing stops may also be used at your discretion.

Please note that as a general rule of thumb you should not risk any more than 3% of your trading account on any one trade. Therefore, with the DAILY95PIPS strategy the order size will need to be divided between the long and short orders. The total potential loss on the long orders (90pips) will therefore add up to 3% of your trading account. Alternatively, you could risk 3% of your trading capital on EACH order, totalling 9% of your trading capital being risked for the long trades. The same applies to the short orders.

By: mikelath

 

This is a simple system that good to try.

Setting :

Simple Moving Average (SMA) 100
Damiani Volatmeter 10,60,1.4 (download Damiani volatmeter here)
MACD - 15,26,9
4 hour chart
Pairs EURCHF (it has a medium level volatility and it does not get trapped between news, though it reacts mildly but it could be worth checking the other pairs)


System Rules

Long:
Take a long trade when price closes above 100 SMA and MACD histogram goes above 0 line.

Short:
Take a short trade when price closes below the 100 SMA and MACD goes below 0 line.

Re-entry:
When the price, once has given a long or short signal, retraces back to the 100 SMA, re-enter the direction you went the first time. It is recommended to do it the first 2 times the price hits the 100 SMA and keep a watch thereafter.

Retrace entry:
When a bar is over 100 pips, wait for a retracement to occur towards the 100 SMA line and then enter. This will save you from unnecessary draw down.

Exit rule

Scaling:
Take 3 positions per trade. Set first TP to 40, 2nd TP to 70 and let the third position run with Stoploss at breakeven.

Stop loss:
1. Previous high/ low or what you call as support and resistance.
2. AutoPivot Indicator. Use only the weekly option in it and place stop accordingly.

Filter

This is a trend following system, and has it's bad days. To avoid getting trapped in a range, use the Volatmeter indicator. It is, so far the best indicator to helps detect a ranging a trending market. In volatmeter indicator watch when the white line crosses above the green, It mean the market beginning a range or already entered into it. When the green line crosses above the white line, market getting into a trend, this is what we looking for to take short position or long position.

As an example; once trade hits the first target, moved the second position to breakeven and leave the third as it is. When the 2nd position is hit, move the 3rd to breakeven, giving the trade enough room to breathe. Then look for the price to come back, to add to the position, if it is open. At times, when price comes back to the 100 SMA, get stopped out at breakeven, it has given 100 pips on 2 positions.

 

The author of this forex system said this forex strategy has given him consistently profit from forex trading. It was interested because the forex system could potentially result 100 - 800 pips per trade on daily chart. Let us see his system;

Setup:
* Open up a daily chart on EUR/JPY.
* Apply Bill Willam’s Accelerator Oscillator (AC).
* Apply Stochastic with setting 5,3,3 on top of AC. Use the template if don’t know how to.
* Try and use demo MT4 from ODL securities. Every broker has different time when they start a new daily candle.
* ODL seems to have the time that works best. I only use their demo account for charts and place my trades on totally different broker.

Short Entry: RED AC below 0 and Stot below 0
Long Entry: Green AC above 0 and Stot above 0
Exit: OppsiteBuy/Sell signal or as per Money Management.
Filter: Apply 200SMA. If price is below 200SMA then only take short trades. If Price is above 200 SMA then only take long trades.

Money Management:
* Trade with 5 Lots with Stop Loss 100 pips away
* Take Profit on 1st Lot at 50 pips. Move Stop Loss to Break Even (BE).
* Take Profit on 2nd Lot at 100 pips.
* Take Profit on 3rd Lot at 150 pips.
* Take Profit on 4th Lot at 200 pips.
* Let the 5th Lot run until you see an opposite entry signal.

The Risk/Reward ratio turns out to be 1:1 or better depending on your 5th Lot. Since we trade on daily and would only take trades with high probability of success, 1:1 would work just fine.

If you choose to do back-testing then take special care for signals from late November to end of Dec. Low volume during this time of the year creates wild swings.

Spend 2 mins every day to analyze 8-10 of your favorite pairs. Demo it for 2-3 weeks and post the screen shots of your trades for everyone to see and learn.

OzFx

 

This forex system was posted by Pablosky at forexfactory.com forum. He said he has created and tested many systems and finally there is one it seems to generate regular profits for him. He only tested it on GBP/JPY and fund that H4 is the best timeframe to spot firm. He said that We have known that trends in GBP/JPY are strong and prolonged, but it's not easy to recognize its beginnings and the right time to exit. He was sure this system should work with other pairs with the right adjustments if needed, as each pair has its own personality.

Target points and Stop Losses for this system are “dynamic”, as he called them, because they change according to the indicators used. You will understand what he means once you read the logics. At first it may look a bit complex, but soon you will realize it's easy to follow and understand. Of course, charts with examples will finally give you the full picture.

This forex system uses visible indicators: ATR Channels and StepChoppyBars v1.1, which needs to work properly StepMA v7 and StepRSI v5.2 indicators.
StepChoppyBars is a great indicator created by Igorad from Forex-TSD.com forum. Legend for StepChoppyBars indicator is the following:

Blue :
Strong UpTrend.
DodgerBlue :
Retrace UpTrend
LightBlue :
Choppy UpTrend
Aqua : B
e ready to change UpTrend
Red :
Strong DownTrend
Tomato :
Retrace DownTrend
Orange :
Choppy DownTrend
Yellow :
Be ready to change DownTrend

Download Pablosky forex system MT4 indikators Here

Buy & Close-Buy Logics
Buy three equal positions when a candle closes between Lime ATR Centre Line and Aqua ATR Line, Step Choppy Bars candle is blue and previous Step Choppy Bar candle is Blue or Yellow. SL for the three opened positions is a candle closing below Yellow ATR line.

Target point for the first position is a candle closing above Aqua ATR line. Once this TP is reached, the Stop loss of the two remaining open positions will be moved to breakeven. TP for the second position is a candle closing above DodgerBlue ATR line. Once this TP is reached, the SL of the remaining open position will be a candle close below Aqua ATR line. If trend continues and price “touches” Blue ATR line, SL of this last position will be now a candle closing below DodgerBlue ATR line. This last position will remain opened till SL is triggered or a candle is painted Aqua.

Note: In the case a candle is painted Red, Tomato, Orange or Yellow during any time of the process, all positions should be closed.

Sell & Close-Sell Logics
Sell three equal positions when a candle closes between ATR Lime centre line and ATR Yellow line, Step Choppy Bars candle is red and previous Step Choppy Bar candle is Red or Aqua. Initial SL for the three opened positions is a candle closing above Aqua ATR line.
TP for the first position is a candle closing below Yellow ATR line. Once this TP is reached, the SL of the two remaining open positions will be moved to breakeven. TP for the second position is when a candle closing below Orange ATR line. Once this TP is reached, the SL of the remaining open position will be a candle closing above Yellow ATR line. If trend continues and price “touches” Red ATR line, SL of the last opened position will be now a candle closing above Orange ATR line. This last position will remain opened till SL is triggered or a candle is painted Yellow.

Note: In the case a candle is painted Blue, DodgerBlue, LightBlue or Aqua during any time of the process, all positions should be closed.

Note: If we see a sell opportunity but the candle is closing between Yellow and Orange lines (instead between Lime and Yellow lines), very close to yellow line, you may:
- Open three positions, apply the TPs and SLs for the 2nd and 3rd positions as usual and use the same TPs and SLs than the 2nd position for the 1st position.
- Open two positions, ignoring the 1st one and applying TPs and SLs for the 2nd and 3rd positions as usual. The same logic applies to a buy opportunity, but doesn't happen frequently.

When taking a position, always wait for the candle to close. A possible variation would be opening only one position and moving the SLs accordingly.

Pablosky said that, what he like about this system is that it generally gives accurate signals and if not, will tell you to exit early avoiding big losses. Also, it's very likely that for not so prolonged trends at least the first TP will be reached, so you will generally exit happy with profits. The system requires attention but not so much, it's enough to take a look at the chart every 4 hours to see how the candle is closing.