The Complete Cat and Mouse System with Money Management

Trading Systems Free Forex Trading Systems
1

This is the system I trade, I only trade about an hour and a half on average every day. I trade only the London Session and the NY session, I never trade after 13:30!

I called it cat and mouse because it’s like sitting for ages waiting for that mouse to jump and then you pounce on it, and get your pips, and like the cat that gets to play with the mouse, you get to play with your money!

I put up 4 pairs on my screen in this order - GBPUSD EURUSD EURGBP and USDCHF, It’s a bit like a 2 up 2 down thing!:wink:

I have 1 big fat 5 minute candle on each one, scaled to where my chart is labelled every ten pips at about half my screen, I only trade the GBPUSD I then sit and I wait, and I wait and then maybe wait some more, sometimes I’m done in 10 mins

To trade, the market conditions have to be ‘perfect’ the whole idea of the system is that you don’t trade until you know more or less for sure that you will win, it’s like if the market is going like 051, 059, 053, 048, 051, 048, 056 it’s no good, but if it’s going 051 052 054 055 057 it will continue to do so.

For a Sell
When the market starts moving and the USDCHF is going up pretty smooth and fast, the EURGBP is stable and pushing up the EURUSD is going south, the GBPUSD is also moving down you put a sell on, then when the move stops you click buy to close the order, and then that’s it.

I trade around 6 - 10 hours a week, A typical week would be +3 +6 +8 +2 maybe, or even +2 +1 +3 +1 +7, very very very occasionally a +1 -3 +5 +3 +4 +3, trade that on high leverage and compound the profits, you don’t have to get stressed, you don’t have to analyse and it makes one heck of a good return. It has been known to get 18 PIPS or so now and again, I just take the rest of the week off.

Screenshot - This is how I set up my trading station and have a buy and sell window open by the side.

And the money Management - See how effective getting a few pips are long term - That’s the BIG PICTURE!

It’s a little trickier than it first seems, but once you get the hang of it, you don’t have to do any hard thinking, you don’t have to spend much time trading, you hardly ever get a loosing trade, basically you just practice it until you hardly get any and then go live.

THE MOST IMPORTANT THING - PATIENCE.
Good Luck with it.

2

Thank you for sharing your system.

You must have a broker who gives you a large leverage and a very small spread for GU.

I certainly learn a few things from your system, that is 2 pairs going up and 2 pairs going down.

Cheers,
Learn2b

3

Hi, yes it’s 2 up 2 down alright! :slight_smile:

It’s correlation.

The Leverage is 50:1, that’s what the calculation in the spreadsheet is.

Broker is Oanda, spread is 1.8 PIPS

4

Hi, that’s a quick post.

You did not share how you exit a bad trade!

Cheers,
Learn2b

5

Soon as the market thinks of changing direction, you come out, it does take some practice, but you will get into the habit of noticing the right market conditions that will nearly always but always cover your spread.

As much as I hate the word Autopilot, because of the connotations it has with Forex, but this is what your aiming for, you see something happen you act on it, it stops happening you exit the trade, it’s a case of just training your brain to do that on your behalf in a way, so you don’t have to think!

6

I’ll do a weekly log, so you know what kind of thing to expect, i’ts a bit tedious doing it daily with this method.

So Monday Afternoon, that’s when I start at 12:00, I had 2 pips during that session, then nothing Tuesday and yesterday, then a 0.2 and a 0.5 this morning and then another 0.2 and then 10+ this lunchtime.

Makes nearly 4% for the week, so - small, BABY pips you might say :smiley: but decent percentage.

7

BABY pips you might say but decent percentage.

:smiley:
You do not need hundreds of pips to be very successful. You need a system that works and the patience and discipline to stick with it and not get greedy.
Thanks for sharing a nice outside the box method.

8

You are talking a lot of sense, i think this is a different approach that others could benefit from.

In effect with this extremely simple technique you are doing the opposite of the norm (probably why people can’t/wont get to grips with it) - instead of risking £3/pip and aiming for 30 pips you risk £30/pip and aim for 3 pips, so simple but also if done correctly, so effective especially when you then compound.

It goes to confirm what you were saying on the ‘pip counting obsession’ thread, if you need a van load of pips every week to stroke your fragile ego then this is not for you!

9

What an intristing system, completely different. I read it in another post where you have posted your system on.

Scince you have opened a thread I think I would like to demo it and ask a few questions if you dont mind.

10

Go ahead, but don’t bother on Monday because of the holidays, the thing with this is, that you can learn any kind of trading you want, and then have a go at this for an hour on the session opens.

And yes, please ask anything, I’ll explain anything I can with regards to it.

12

Do you have a stoploss? Or can you just decide when the trade is against you and exit? How big are you avg losses and wins? And how often do you lose?

13

I set stop loss at 2, so it’s 2 + the spread is the maximum you loose, but you must exit as soon as the price is retracing, the name of the game is nearly never to make losses, but around 9 out 10 should see you in good profit.

14

If i may ask how long have you been trading this way?

15

Hence for anyone considering this type of approach your trading costs (spread and commissions) are critical. Oanda are probably the only broker you could use as others will give you effective costs of 3 or 4 pips. Oanda in the past have suspended the accounts of those they consider to be scalpers as they were not able to lay off the trade in the interbank market effectively. This may of course have changed with improving technology but worth checking with them that they would accept this as a long term trading strategy

16

nice system…
will try it out on demo…

17

There’s a long boring, uninformative answer to this, so I’ll give you the short one, just over a year.

18

IKON royal was another broker I used to scalp short trades but I did have my own custom Metatrader interface for the buy and sell, and I think they were better than Oanda, but they closed all UK accounts.

I’m not sure if I buy into this brokers not liking scalpers now, I expect that there are dodgy brokers out there that will close accounts and execute at any prices they like, but OandA are definitely not dodgy.

NOTE: If you are getting big slippage trying to use this system - you are doing it wrong, and I can’t vouch for using it at times other than the 2 major session openers, If you are time restricted, and can’t do these sessions, try from 3:PM to 4:30pm, but I can’t vouch for it.

When you get the hang of it you will be able to look at the price action and determine if that behaviour is tradeable, quite often you will see quite an obvious character change in the price action between 1 and 2 (UK time), when you can say, that’s it there want be any more trades.

19

What do you mean by this. You are looking at 4 different charts with 4 different outputs. Define “stops.”

Also, I didn’t understand what you mean by +2, +3, etc…

20

I’m sorry but can you clarify the question?

21

Do you only short?