Quote:
Originally Posted by mytwopips
Here is my system and rules. It works when I follow it. Any feedback good or bad will be most gladly accepted.
Trading System And Rules...
-- Only follow longer time frame trends on short time frames using 15 min charts.
-- Only trade the direction of the trend.
-- A valid entry will be when price is trading above/below the 5 and 10 moving averages
with a previous bullish/bearish cross and the ma's are pointed in trend direction.
-- An entry is not valid if the trend looks to be reversing by the rsi or macd showing
extreme readings.
-- If a trend is up, RSI will have to be above 50. If the trend is down, RSI will have
to be below 50.
-- If the charts looked fluttered, then no entries are valid.
-- Entries caused by recent news are not valid.
-- All entries will be stopped when 1% of account size is lost. The 1% can't exceed 20 pips and entries
need 20 pips breathing room. So all stops will be 20 pips with lot sizes adjusted to meet the 1% requirement.
-- All valid entries will be traded.
-- Three consecutive bad trades will terminate the day. The market is not in favor of
the system that day.
-- Profits will ride until a take profit point has been reached either by system reversal or
price has moved way past its range.
-- The system will not be traded on the Asian session.
-- No valid entries and sitting in cash while going to Babypips to goof off is a valid alternative entry.
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Rules to Trade By
I like what you have developed for yourself. Here are some thoughts on the matter I hope it helps
Hey we all have to admit we have done that a time or two… or three! I too have learned the hard way. Writing down the rules is a great way to stay focused. I found that writing everything down in a check list format like a pilot uses before every flight brings dividends of wealth to my accounts. A pilot will still go through the preflight check list before every flight. Even though he has flown hundreds of times before, to make sure he is on track and that the flight will run smooth. This does a couple of things. One, you remove error from your trades. Or at least minimize…human error is always a factor. Two, it helps to reduce the emotional strain that comes with the territory. I have put great detail into my pre trade instructions. Example: If the MAO closes after a fresh cross and the hot lines have a fresh cross wait for the candle to close to confirm the entry. Only place the trade once you see the open of the fresh candle agree with confirmation signal. Patience!
I try to live and die by my rules I always say RULES TO LIVE OR DIE BY! RULES TO LIVE AND FLY BY!
Glad it was a demo account!! -this is the place to make those mistakes. I have actually been having some good days; I try a 'scalp' on todays 8:30 Jobs report an hit 176-pips--- damn, it was only on the demo; I actually open another demo profile on Monday, with the intent to "trade my plan" since I feel comfortable with MT4 platform now---and I've increased it by 418-pips after todays 'scalp'... I'm look'in to go Live.... soon.....maybe....
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