[keitsuke]

My system is very simple. Below are some parameters first:

Time frame:
H4, H1, and M5.

Indicators:
H4 – SMA, stochastic, trend lines.
H1 – Bollinger bands, stochastic.
M5 – Starc bands.
And the most important indicator of all – Candlesticks!

Maximum leverage:
10:1

Maximum risk exposure:
2% of equity

H4 is used to gauge the general trend. H1 is used to identify reversal patterns as well as retracement of continuation patterns. And M5 is used for entry.

My system is not really a system; it’s a trading style, for now. As I gradually gain more experience in trading, I will change my trading style where appropriate, but for now I’m laying down the foundations.

I read from a particular technical analysis book while I was studying forex the following quote. It goes along the lines of;

“The market will continue to move in one direction (up, down, sideways) unless an external force (such as economic news, fed speeches, significant world events) forces it to change direction.”

It may seem blatantly obvious what the quote is suggesting, however, I can guarantee a lot of new traders out there, knowing the above holds true, will try to contravene the statement by bottom/top picking. I know I certainly have, and it had cost me dearly in some trades, which is why it forms the foundation of my trading style.

Here’s my trading style in a nutshell;

1. Trend analysis using H4 – this determines the direction of my trade, as well as my T/P level.
2. Candlestick patterns using H1 – this determines whether there is a trade setup based on reversal patterns.
3. Bollinger bands and fib retracement levels – used to determine the level of risk of a particular trade setup in 2. Fib also used as S/L and T/P targets.
4. Entry using starc bands on M5.
5. S/L and T/P are used upon entry. S/L does not change, but T/P may change depending on how the trade pans out.

So here goes.
I welcome any questions or feedback from fellow traders, whether positive or negative.


Keitsuke