Starting a Journey of a new method

Hello Everyone,

I am not new to this forum though it is my first Thread . I will post here my method and also daily update If I trade. It won’t last long I thing, I wish to enter the bigger Babypips world.

I am telling my method step by step.All trades will be done in Demo mode and will trade really hard.

If I see my winrate is 70% and upper,I will use this method to my Live account. espesially Goldenmember,Jwlee and Meihua inspired me to open a thread, I was disturbing them and I am sorry for disturbing, I just wanna to learn.

Now,

Pair: EURUSD

Timeframe: 15 minutes, It is a kind of remixed method so also the timeframe.

Session: London and NY most of the time.

Lots: 1 lots.

Takeprofit: 20 pips and if goes further then 50 pips, highest 150 pips.

Stoploss: 1:2 ratio. 10 pips stoploss for 20 pips takeprofit,but it must be more that is the takeprofit now is…

Indicators and Scripts:

MA,Information,Buy and sell order, 2MA crossover

(Good Means They are my friend and making good signal for what way I wanna go,if green I will buy,if red I will sell; IF they all say the same thing only.)

Method:


  1. I will see H4,H1,M30,M15,M5 for drawing Support and resistence.

  2. Will take MA10,20,50,80

  3. Then will wait for MA10 crossing M20 and also for a nice 2ma crossover signal, Then will see support and resistence line and then information indicator for MACD,STR,EMA boxes says good for M15.

  4. I will place a order with buy/sell script using my pre-instructed takeprofit and stop loss.

  5. Then wait and see 10 minutes and hurrah. If it goes more than I increase the take profit and more hurrah.

  6. When it take profit close and the signal start going reverse then I will open another trade if number 1,2,3 is equal to yes,or just watch.

Why MA10 for 15 minute chart? And what the support and resistance will do?

It is safe to put SUPPORT AND RESISTANCE cause If I know some pattern It will help me a lot for taking disitions .Ma10 is the closest Moving avarage to signal bar,and it is well far from signal also.

Dont worry perfect, your not bothering. Great to see you started a thread here. Should be a great journey, I would make a few suggestions though.

  1. stick to higher timeframes 15 min at the lowest I would say. Most people recommend 1H or higher. Especially for beginners
  2. 2:1 reward to risk ratio is fine, But use techincally based stops. Having a fixed stop loss is asking for trouble, just the ‘noise’ of the market will stop you out. Place your stops above significant high/lows of candles or support/resistance. It will make them ‘safer’ as there is a line of defense before your stop is hit.
  3. Personally having 4 MAs that are only 10 periods apart and trading the cross over doesnt add much edge. You should use 1 short term (10-20 period) 1 mid length (~50) and one longer term (100+). This will allow you to see divergence in the short term trends and its overall relationship to the mean (longer term trend). 10 periods apart doesn’t really do that.
  4. Actually i like your time stop that’s something you don’t see very often. You have acknowledged something most people forget. the market can hurt you 2 ways, Price & Time. Good to see you took that into consideration.

Overall Its great you have a documented system, but i never really found the MA crossover a profitable system long term. But who am I to speak, i am a self admitted losing trader. I would say that if you used these indicators in CONFLUENCE, with price action/candlesticks and support/resistance. For a 3 pronged attack you will have much better success. But waiting for indicator to turn green to buy and red to sell is IMHO a recipe for disaster.

Anyway good luck with your journey, i do not mean to bash you in anyway or crush your spirit in the first post. As what happened in my thread. Please keep trading and learning. But just tuck these thoughts in the back of your mind and as you learn and modify your system maybe these small nuggets will become more useful. Or you can just throw them in the garbage. As with all trading think independently, and make your own choice. Cheers and good pippin!

Thanks for advice. I will retwist my method, why you were so angry? I was just making fun with you.
I am serious when somebody give me advices.

I have a question:

If you are setting a minimum profit target of 20pips and using an EA to execute the take profit order then how will you ever make more than 20pips? If the auto execute closed the trade at +20 then it will be impossible to make more, but suppose you are doing this manually how do you determine when to take 20, 50 or 150 pips?

What if the price goes +20pips do you hold til +50 or take the profit? What if it then reaches +23, then goes back to +20 do you close the position? If no, what then if the price pulls back to only +10pips or goes into a loss? If yes then you might miss out on a +50pip move.

I don’t see that as a workable strategy for taking profit. Do you however mean a trailing stop loss?

That picture cannot be 3 trades in 3 hours on a 15 minutes chart. I can’t really make out the time scale, but is that a 1minute chart?

This is not a bump to this post, rather its a followup post. I just found this email account and logged in back, sorry for disruption. I am trying to clean up the mess I did while learning things, hence this post. Perhaps I should be ending/closing this thread or edit the 1st post with clean data.

It took me 5-6 months to gather courage to chat with others about forex, and then more to start a thread, many years have passed since then. I still remember what stupid and disrespecting things I said to honorable elders in the chatbox.

Now I wonder, what did I learn all these years?
[ul]
[li]You cannot just be an experienced trader by trading for 1-2-5-10 years. Timing is not relative when you learn something. You can be experienced well within 6 months, or you can still stay a newbie like me after 5-6 years.
[/li][li]I used SR back then, and I still use SR.
[/li][li]I tried to trade Trend, I still trade trend most of the time.
[/li][li]My English was very bad, still I’m bad in English :cool: .
[/li][li]I tried to confirm my trade using various indicators, and now I use one or two indicators mostly for divergence and simpler purposes, and sometimes I don’t need those indicators at all.
[/li][li]Just like any other newbies, I tried to act all cool by saying I’ll update this thread daily. Arrogance is bad for learning mind.
[/li][li]And many more things…
[/li][/ul]

This method above, it looked pretty simple that time, at least simpler than having hundred indicators.

If I were to trade this method above,

[ul]
[li]I’d do something like drawing some SR/TL and trade after confirmation with indicators like MACD, STR (what’s that?), EMA box?
[/li][li]If the 10MA was close to the price, I wouldn’t enter the trade. Probably that’s what I meant by MA10 being closest and far enough from setup candle.
[/li][li]Then after market going into my direction for a while, I’d set a trailing SL perhaps.
[/li][/ul]

Probably like this image below.


Anyway, I started the journey long ago, and still have many things to learn. Thanks MeiHua, jwlee7ucla and Others for those advices and other things. Thanks for not discouraging me.

Best of Luck.

Using MA’s on choppy market is very very difficult. One can get numerous false signals on such a day.

5 years ago, I started this thread in wrong sub-forum, although I made mistakes, I knew what I had to do. I used PA and confirmed with various factors. But that is the past. I do not recommend this strat to anyone, I was just showing how I started my journey.

Regarding MA, I stated that If the 10MA was close to the price, I wouldn’t enter the trade. That explains your statement regarding MA on choppy market.

My bump was/is about to let you guys know if I learned anything or not. :slight_smile:

Thanks for the reply.

Demo account helps us to find new trading plans and strategies to improve our trading skills so keep practicing in demo account helps us to improve profit margin from risky Forex market.

best of luck on your forex journey, will drop by to look at how things are going :slight_smile: best of luck bud…