Here is my system and rules. It works when I follow it. Any feedback good or bad will be most gladly accepted.
Trading System And Rules...
-- Only follow longer time frame trends on short time frames using 15 min charts.
-- Only trade the direction of the trend.
-- A valid entry will be when price is trading above/below the 5 and 10 moving averages
with a previous bullish/bearish cross and the ma's are pointed in trend direction.
-- An entry is not valid if the trend looks to be reversing by the rsi or macd showing
extreme readings.
-- If a trend is up, RSI will have to be above 50. If the trend is down, RSI will have
to be below 50.
-- If the charts looked fluttered, then no entries are valid.
-- Entries caused by recent news are not valid.
-- All entries will be stopped when 1% of account size is lost. The 1% can't exceed 20 pips and entries
need 20 pips breathing room. So all stops will be 20 pips with lot sizes adjusted to meet the 1% requirement.
-- All valid entries will be traded.
-- Three consecutive bad trades will terminate the day. The market is not in favor of
the system that day.
-- Profits will ride until a take profit point has been reached either by system reversal or
price has moved way past its range.
-- The system will not be traded on the Asian session.
-- No valid entries and sitting in cash while going to Babypips to goof off is a valid alternative entry.
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