System144 - By Peter Leyshan
Forex Currency Trading System
System144 - By Peter Leyshan
This is a Short-Term Trading System 1-3 days.
Only two indicators are used: Williams%R (Period 14), and Awesome Oscillator.
The system is designed for AUDUSD and USDJPY currency pairs only.
Selling:
Look at the daily chart. When the williams%R goes into overbought (0-20), or has just left being overbought (just below 20), we are looking to go short.
Next look at the daily chart again. The Awesome Oscillator needs to turn red. If it is red, we sell when the price moves below the low of the previous day.
Stop-Loss is set at 40 pips for the AUDUSD or 64 pips for the USDJPY.
Take-Profit is set at 50 pips for the AUDUSD or 80 pips for the USDJPY.
If the Stop-Loss, or the Take-Profit prices haven't been hit after 3 days, we close the trade manually for a smaller profit or loss (the market is going no-where).
Buying is the exact opposite.
Buying:
Look at the daily chart. When the williams%R goes into oversold (80-100), or has just left being oversold (just above 80), we are looking to go long.
Next look at the daily chart again. The Awesome Oscillator needs to turn green. If it is green, we buy when the price moves above the high of the previous day.
Stop-Loss is set at 40 pips for the AUDUSD or 64 pips for the USDJPY.
Take-Profit is set at 50 pips for the AUDUSD or 80 pips for the USDJPY.
If the Stop-Loss, or the Take-Profit prices haven't been hit after 3 days, we close the trade manually for a smaller profit or loss (the market is going no-where).
Money Management:
Never risk more than 2% of your trading account.
Risk/Reward Ratio = 1:1.25
Where does the system get it's name from?
Originally, the system asked for a Take-Profit target of 144 pips (this is a magic number 12*12). But later this was seen as greedy, and it can take several days for this target to be reached, which means rollover/carryover costs start to add up.
Last edited by tangara; 03-15-2007 at 10:18 PM.
Reason: Weekly chart has been replaced by the Awesome Oscillator for optimization. Risk/Reward updated.
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