Potentially good system for laid back trading

Beginner Questions
1

Here is a promising system I discovered that allows you to check the markets but once/day and still make $.

Use a 1 day chart, with bollinger bands, and Fast Stochastic.

Whenever a currency is over stoch 80 and crosses %K crosses under %D, and the currency is near the top of its bollinger range, then short.

If fast stoch is under 30 and crosses upwards, and the currency is close to the bottom of its bollinger range, go long.

One more important thing to consider. ONLY get into a currency if that currency has crossed over/under fast stoch that day. If it happened 1-2 days ago the trend is already old and your upside is limited.

Set 100 pip stops from your entry. This allows you to keep each loss at 3% or less and still take advantage of moderate margin rate of approximately 3-3.2.

My goal for this system is an average 10 pip profit/trade. If this can be accomplished, and one makes 5 trades/week,(a ridiculously conservative number considering 6 currencies qualify today alone) one would make 200 pips/month, or 2400/year assuming you didn’t funnel all profits back into the system.

This amounts to 72% annual profits, assuming the system works over the long term.

I will keep you all updated at each trade I make with this system and hopefully this will prove a money machine for those of us who don’t have all day to state at 30 min or 1 hour charts.

Here are todays trades:

Currency Quantity Trade Entry Price Stop Loss
AUD/JPY 1875 Short 94.89 95.89
EUR/CHF 1875 Short 1.6194 1.6294
EUR/JPY 1730 Short 156.674 157.674
USD/CAD 1730 Long 1.1591 1.1691
CAD/JPY 1730 Short 101.64 102.64
CHF/JPY 1730 Short 96.76 97.76

Please let me know of what you think of the logic of the system. Good Luck to all traders.

2

So, correct me if I am wrong. You are setting a 100 pips stop loss for a trade to make 10 pips?:eek:

3

If you are risking 100 pips for a 10 pip gain that means that 1 loss will wipe out 10 wins. If you win 73% of the time then if sounds like your loosing money faster than you can print it.

4

A 30-50 pip stop loss with a 100 pip take profit (goal) sounds more sensible to me. You’ll lose money with it the other way around.

5

I apologize for not being more clear, I meant an average of 10 net pip profit.

This means that, on average, on every single trade I make 10 pips.

So for example, if I make 5 trades in a week, as long as I am up 50 pips at the end I am happy. At the end of each year, after making at least 240 trades, I want to be up 2400 pips, or 72%.

This means making, on average 110 pips on each profitable trade.

6

I’m sorry xmsr33 but I smile everytime I see the title of this post.

I look like I suffer from Parkinson’s since starting to trade live i.e. permanent shakes!!!

I did not think that there was such a thing as ‘laid back trading’!!!

Just a joke and could not help myself to post this.

Regards,

Dale.

7

AUS/USD short at .80445, Stop loss at .81445,

EUR/GBP could turn upwards tomorrow, fast stoch currently beneath 4.

Good luck to all.

8

What’s the winning/losing percentage of your method? thanks have a good one eh!