Jolly Ranger Trading System by littlebopip

Hey guys! I decided to give Robopip’s Best Forex Trading another shot so I hope you like this system I have. But first, a quick introduction. I did a little bit of reading for the past couple of days to help me figure out which set of indicators work well for range plays and there were some interesting studies that showed oscillators such as RSI and stochastic work better in ranging markets. So all I needed was an indicator that would signal if the market is ranging or not, and I remembered the ADX does this. Lastly, I picked a pair that usually ranges and from observation, it looks like USD/CAD would make a nice fit.

Here are the system rules:

Pair and time frame: USD/CAD Daily

Indicators: ADX (10), Stochastic (14, 3, 3)

Long entry: ADX must be less than 25 to signal that price is ranging while stochastic must make an upward crossover while in the oversold region. For this system, I used the 25 level to mark the oversold region. Buy at the open of the candle after the signal candle.

Short entry: ADX must be less than 25 to signal that price is ranging while stochastic must make a downward crossover while in the overbought region. I used the 75 level to mark the overbought region. Short at the open of the candle after the signal candle.

Stops: For long trades, set the stop 20 pips below the low of the signal candle. For short trades, set the stop 20 pips above the high of the signal candle.

Targets: First profit target is 100 pips. Close half the position once the first target is hit and switch to a 100-pip trailing stop.

Other exit signals: Close and cover the open position once the opposite signal pops up. For instance, if you are currently in a long trade and a short signal occurs, close the long trade at the open of the next candle and enter a short trade.

Note that if the similar signal occurs, just retain your current position. No need to add another position. In other words, if you are currently in a long trade and another long signal occurs, stick to the trade details of the current long trade.

Here’s a screenshot with some valid setups:


I risk 1% per trade but you can opt to modify this depending on your risk tolerance. For those trades shown above, the P/L would be:

Short trade #1: 1.22% (pt1) + 1.22% (trailing stop) = 2.44%
Long trade #1: -1.00% (stopped out)
Long trade #2: 0.39% (pt1) + 0.78% (pt2) = 1.17%

That’s all I got for now. If you have any questions about this system or any suggestions on how I can improve it, let me know!