Since I am still new my system is very simple and has been effective so far.
I only concentrate on EUR/USD and GBP/USD
I use daily charts, EMA, MACD and STOC primarily to detect overbought/oversold conditions. I check the news to make sure nothing came out that would contradict my entrance (long or short)
This part I dont know if its dangerous/misleading, but if I suspect a swing, I’ll drill down to 4 hr, 2, hr, 1 hr and look at the trend lines, then I enter when happy.
I enter with a 35 pip trailing loss if all the stars align. If I am 80% certain of a trend shift I will not do a trailing stop but set a limit no more than about 75% of the previous shift.
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If there are no trend shifts I watch out for fib patterns, or try to predict breakouts from triangular trends and act on those.
In the week I’ve been demoing my platform I’m up about $3k, and thats after a disastrous start of random button clicking.
What type of money management are you using? $3000 in one week sounds like you might be unsafely overleveraging yourself, unless that’s on a $100,000 demo account.
Yeah since it’s play money I am a bit more aggressive and it is a 100k account. At one point I’d have 3 open positions, but since the profits have been substantially larger than the losses I’ve been on top. We’ll see how that is in a couple months :rolleyes:
Once I man up and front the $$$ I will have no more than one account open at a time and will obey the 1%-2% rule
You should demo trade exactly the same way as you plan to live trade. Psychology and money management are 10 times more important than your trading system, and you need to be learning to manage them during your demo trading!
There are a ton of traders that are successful on demo and then lose it all when they go live. The reason is because of exactly what you are doing. They learned their system demo trading, but not how to manage their money and emotions.
