Hello there, i have been in and out of the forums for some years now, and i have finally decided to share my system. This is something i have spent many years tweaking and playing around with to get to this stage. Any input would be very welcome.
Myself and a small group of other traders have been using my system to make good consistant profits for some time. I believe it is very simple to follow and if used correctly with give anybody valid trading signals. It is mostly based on a custom RSI and i have a set of custom stochs to validate any signals.
If you load the attached template file your charts should look something like this.
In the picture below we can see what i would call a ‘perfect’ trade. We can see the RSI (bottom indicator window) is showing an RSI Cross. This is where the blue line is above the red and the black. As soon as the blue breaks out of the channel the red line makes we have a valid entry.
We can also see at that exact same time the stoch’s have all bunched and are starting to rise in one neat line. It is important for a buy signal that both the RSI and Stoch’s are oversold or at the bottom of the indicator window.
Ok, well you can use whichever form of MM you see fit but i will tell you how i do it.
30 pips is my magic number, stop loss is 30, and mostly my target per trade is 30 so i use a 1:1 risk reward. Often when a trade reaches 30 points i will move stops to breakeven, take up to 80% of the profit and then allow the remaining 20% of the trade to run. (i will close out the remainder of the trade at 100 points without fail.
I NEVER risk more than 3% of my account per trade.
I trade the morning UK session, so 8am -11am UK time, if i have no trades by 11am i finish for the day. If i reach my 30 pip target before 11am i finish for the day. Remember it can be quite easy to make your target every single day but it is even easier and quicker to give it back. Walking away is the most important part of my day!
On average my indicators with give 2-3 perfect signals per major pair per week. It is important we only pick these ‘perfect’ signals.
Lastly it is important when we do take trades from the indicators we measure the previous market move, if the market in question is flat then i would avoid any signals on that pair, if however you have a valid signal and the last market move was over 100 pips then wait for your entry on a smaller timeframe and trade it.
Hope that helped, i may post some trades/signals in this thread over the coming weeks if anybody is interested.
Thanks for sharing your system. I have a few questions about it. For long, is your signal the cross of the lower red band then the cros of the black line and for short is the signal the cross of the upper red band and then the cross of the black line?
Also, you said that: “It is important for a buy signal that both the RSI and Stoch’s are oversold or at the bottom of the indicator window”. According to that, are my two entries shown in the pic valid ones? I doubt it.
The “SELL” warning in the pic is a heads up signal before the cross, right?
Hi guys, firstly may i apologise for the late reply. I will do my best in future to monitor this thread and answer any questions asap.
Firstly let me just explain the buy and sell text you can see in my screen shots i added simply to demonstrate good signals.
With regards to the performance, i have been trading this exact system for the best part of 4 years. This is a simplified version of an older system i desinged but it works equally as well. My mission many years ago was not to make hundreds of pips per day/week, but to be consistant in both profit and loss.
It does not matter if i make 30 pips a day or 300, as long as i can do it consistantly then the system works. This goes with the losses too. As mentioned before it is very easy to give back the results of several days profitable trading in an hour.
So my average is around 127 pips per week. Sometimes it can be much more some weeks i only take 1 signal for 30 pips. Quality over quantity every time.
You can add this template to ANY currency pair and i am sure you will find it is equally as effective on all, although my personal records show the performance is not as good on the GBP/JPY.
I work it on the 1hour, if i find a valid singal i will check the 4hr to see if it is showing signs of confirming the 1hr signal. I will then go down to the 5min and 15 min to fine tune an entry. I do this to keep my stops as tight as possible, normally 30 pips. You will find that you can trade just from the 1hour chart, although stops may need to be increased…
Just got the template and I’m going to look at it and see how it goes. Looks promising, so you look for a signal on the 1h, look at the 4h to confirm trend, and then enter off of a 15 or 5m chart.
When looking to fine tune your entry you still use the template correct?
Yep - i use the template for all of my trading on every timeframe, it is possible to use it on smaller timeframes and take smaller profits, you can adjust it to suit your trading, this is just how i do it.
I just demo’d it on a smaller time frame actually did two trades, one for 30 pips and one for 15. I like your system and I’ll spend some more time with it and report my results
Remember to adapt this system to suit yourself like reaper, i am giving you the way i do it, but i know these indicators are really flexible and will produce results on all timeframes. In the past week i have taken 12 trades and won 10 of them, the 2 loosers were no bigger than 10 pips.
You said that you trade from 8am to 11am UK time. Do you wait for signal directly at this hours or maybe when signal occur at night time you switch to 15\5 time frame and looks for trade opportunity in direction of the signal ?
My trading times are based a) on the fact i live in the UK. b) obviously the UK session is the most active.
But you can adapt any part of this system to suit yourselves. I like to keep to my 8-11am hours to cut down on the amount of time i spend at the screen and keep my better half happy.
If anybody is using this system in a different way to me i would be keen to hear your thoughts and results from doing so. In the same way if anybody is having trouble grasping the system i am here to help.
Dont worry, so far on this thread i have received 2 infractions, this is due to overactive moderators with nothing better to do. I PM’d “pipsygirl” regarding this issue and the reply was in broken English. I don’t think whoever was moderating can read or write english very well.
I will attach another copy of the template to this post, hope it works ok.
