Hello, this is the first time I have shared my system on a forum. Please feel free to have a look. I am about to make a bold claim here, this system does and will work if used properly. Please feel free to get in touch if you need any assistance. It is important that everyone has a good working knowledge of money management and has at least completed the baby pips school. The system is only a part of making money and keeping it.
Please download the .zip file which contains the custom indicator and the template files.
If you need instructions on how and where to save your indicator and template files then search you tube for "Urban Forex Metatrader 4 Tutorials : Adding Indicators and Templates "
If your chart looks like mine then it has all worked well. In the following posts I will do my best to give a crystal clear explanation of exactly how we trade the system and the entry and exit rules.
REMEMBER - this is a very simple system and does not take a huge amount of work to start spotting decent trades.
IF YOU REQUIRE ANY FURTHER ASSISTANCE PLEASE FEEL FREE TO ADD ME ON SKYPE AS - fxsystem32
Firstly please take a minute to inspect your charts to ensure they look like my screen shot. Now have a look and see how the indicators react to desirable movements in the markets. On every trade we are looking for several things to happen.
As you can see above I have highlighted a single trade at random, you should be able to see all indicators giving a clear sell signal at the time the grey arrow appears. We can tell this is a signal for a short position in several ways.
RULE 1: The 100MA (blue) is heading in the direction of the indication.
RULE 2: The indicators in the indicator window are all showing an overbought position, they are ALL squeezed to above the 80 line on the vertical scale, in fact they are squeezed so tightly they all appear to be one line.
RULE 3: Never enter a trade until the current candle has closed. So in this instance the grey arrow indicates a short position opening up, this means we will wait for that candle to close and we will only enter when the price drops below the low of the candle to trigger the signal.
The beauty of a system that is this visual is that you can instantly decide if the chart you are looking at has any potential for profit via these indications. It is very important to remember that any system will pick up every trade that may yield profit, it was my aim to find maybe 1-2 trades per week per chart via this principal and to be sure that if everything lines up correctly then I have a mighty fine chance of taking a few pips out. The exit signal can be determined when an opposing arrow appears but this does not mean that you should ever reverse a trade unless it fulfils the requirements of rule 1,2&3.
Please research money management skills if needed, close parts of each trade at certain points and constantly adjust the stops to ensure that I attain a 0% risk position as soon as possible without suffocating the trade and then I bring the stop loss in to profit gradually, closing portions of the trade as I go. Other money management techniques work just as well too, this is just my preferred option.
If anyone has any questions or would like some live demo time just let me know.
It is more important to know when not to trade, i judge this in 3 ways. Firstly if the 50MA is flat or opposing the indication then personally i leave it. If the bollinger bands in the indicator window look really messy then generally speaking the market will be in consolidation and not worth the risk. Finally you will need to take the major levels of support and resistance on longer timeframes in to account. I.E never a good idea to trade around big numbers, proven levels of daily support and resistance and of course news.
I will be happy to follow the thread. This startegy seems interesting after checking some of the movements on the charts, and seeing how the indicators react all together.
I believe it has the potential for a wonderful system.
As to how the charts look alike we may have a problem, a couple of the indicators in your chart aren’t in the file i downloaded, and also the template didn’t load any SARs.:33:
Sorry, for a post in such short notice from my previous one, but i wanted to point out which indicators where missing and what indicators weren’t supposed to be there, taking into account the images you posted.
The first one i don’t see is the 50MA.(do you mean the blue 100MA in your rules?)
Second i don’t see the arrows with SAR.
Third there are 2 indicators windows, the stoch[(7,3,3),(14,3,3),(21,3,3),(28,3,3)], and the stoch(28,3,5), RSI 4, Bollinger Bands(10) with 10MA. While in your charts there is only the stoch(28,3,5), Bollinger Bands(10) with 10MA without any RSI.
I just want to classify if this is the right template.
Apologies for the lack of SARS, i will find out which file is missing and post it up shortly. Pleased to see some people willing to follow, this system has made several people some very good profits over years rather than weeks.
(i have previously worked for charterhouse capital and the 3i group)
No need for apologies, just keep up the good work, and congratulation for such a wonderful looking system.
It looks like this one is going to form really nice.:35:
i trade the 1hr charts exactly the same as i do the 4hr charts. i.e i am currently in a long position on the 4hr gbp/usd and taking a quick scalp short on the 1hour. Planing to take profit and move stops to b/e when we see contact with the 100MA.
This way i can be long with about 230 pips from the 4hr and a quick short to top up with 40-50 pips this morning. I would however advise newer traders to stick with one timeframe and one trade at any time. Remember we aren’t looking to get in on every trade, just the A* signals that are given.
Sadly this system has custom indicators that are programmed to work with MT4, it is easy enough to use MT4 to plot trades and simply replicate the trade on your chosen platform/broker.
A small disclaimer - this is only how I trade and I am no way in the business of influencing others with their money management rules.
Firstly I will NEVER expose more than 3% of my total trading account at ANY one time. This is very important no matter how sure you may be that a trade will go your way. This means that a bad day can never be worse than a good day is good.
For the sake of argument I will be using 1.0 lots to explain how I trade on the 1hr time frames. This is where the “Plan the trade and trade the plan” comes in. I will pick 3 targets, based on previous levels of support/resistance and trend lines.
Trade 1 - opened with 1.0 lots with a variable stop loss normally between 35 and 60 pips.
At Target 1 - I will close out 50% or 0.5 of the trade and move stop loss to break even if possible.
At Target 2 - I will close another 50% or 0.25 of the remaining lot leaving 0.25 still open and move stop to Target 1.
At Target 3 - I will close out the majority of the remaining lot leaving 0.05 open and move stop to Target 2.
With the remaing 0.05 lot I will pick a long term target maybe 300 pips or so, knowing the stop loss is in profit if it does retrace.
This is how I manage most of my trades and its a good model for keeping the risk to a minimum and locking in the profits on a regular basis.
