your strategy is....?

[madpetz]

hello guys


can i have a few examples please of the different strategies you forex vets have been utilising in your trading, i know i will develop my own but it would be interesting to see the kinds of ideas you have, I.E the number charts you have on screen at one time,( a 5 minute and an hourly/daily?) how many of you use fibbo, stochaic, boll etc, i have looked at using bollinger,14 point RSI, and MACD as indicators on my screen, and maybe making more use of TA and backtesting with smattering of FA thrown in. What are your favoured strategies that have worked for you?

many thanks in advance..

J

[kirk202]

Look for a currency pair that has been trading around the .0000, Like the EUR/USD trading around the 139.00.

1. SMA of 200

2. Draw three horizontal trend lines at: 139.00, 139.15, and one at 138.85.

3. Look at the hour chart to get the direction of the trend, so if its trading above the 200 SMA go long.

4. Use the 15 min chart to enter the position.

5. When it has traded below, or is trading below the 138.85 line place a buy stop for two contracts at 138.85 and protective stops at 138.70. On one contract place a take profit stop at 139.00 and another at 139.15 for the second contract.

Of course for the downtrend just reverse the trade.

In this example I like to see it already have traded thru the 139.15 line or be in a really strong uptrend.

I know this seems really simple but its working well for me, maybe it will work for you. Good Luck!

[tonymand]

Originally Posted by kirk202

Look for a currency pair that has been trading around the .0000, Like the EUR/USD trading around the 139.00.

1. SMA of 200

2. Draw three horizontal trend lines at: 139.00, 139.15, and one at 138.85.

3. Look at the hour chart to get the direction of the trend, so if its trading above the 200 SMA go long.

4. Use the 15 min chart to enter the position.

5. When it has traded below, or is trading below the 138.85 line place a buy stop for two contracts at 138.85 and protective stops at 138.70. On one contract place a take profit stop at 139.00 and another at 139.15 for the second contract.

Of course for the downtrend just reverse the trade.

In this example I like to see it already have traded thru the 139.15 line or be in a really strong uptrend.

I know this seems really simple but its working well for me, maybe it will work for you. Good Luck!

This was written up by James and I agree works well when there is momentum though I have not seen it used in EU before. There are plenty of strategies here on the site including EMA step, the 2 approaches by James, Cowabunga to name just a few. You might also read Kathy Liens' Day Trading the Currency Market. There is no shortage of methods

[bazooko]

This is a simple one that I have been demo trading for about 4 months now and have not had a losing month. So it has passed the 3 month test I think it is time to take it live.

I use the NZD/USD pair because it doesn't move too much in a day. You don't want too much movement because then you have to open up your risk incase of a wierd day or two.

I look at the day chart. When I see a day that is up I take note of the 4 hour and see how it finished the day. On the 2nd day or 3rd day of the up trend I will get in.

Sometimes I will look at the MACD but I find it reacts too slow.

Here is my risk reward format:
1) Only risk 5% of balance. ei. I have a balance of $1000 * .05 (5%)= $50

2) My risk on this trade is $50, My s/l is 100 pips. NZD/USD doesn't move more than 100 pips in a day vary often. So if you want to use another pair you have to adjust the s/l. EUR/JPY can move 200-300 a day so you would want a s/l of atleast 300 or 350pips.

3) risk/pips= lots size. ei. My risk is $50/ 100 pips s/l = .5 lots on a mini account. So I will buy .5 mini lots with a 100 pip s/l if I go down 100 pips I will only lose $50.

4) When I am 100 pips in the profit I will buy .5 more lots. At every 100 pips I will buy another .5 lots. With a 100pip s/l. Note all buys will have the same s/l.

example NZD/USD
.4300 buy .5 lots s/l .4200 risk $50
.4400 buy .5 lots s/l .4300 (for both buys) risk $50
.4500 buy .5 lots s/l .4400 (for all trades) risk $0
.4600 buy .5 lots s/l .4500 (for all trades) profit $100

from here it just keeps going up. Notice that you dont break even until you are up 300pips, but after that you are all profit. At 700 pips you will double your account. But I have not hit this level yet.

The next step is to learn how to read your candlesticks and get out at the right time.

[madpetz]

yep they sound good to me, a lot of sound knowledge baz i like the way you use that strategy ill look at it myself although i will need to adjust it for GBP/USD

cheers tony and baz

[tymen1]

I do not use any indicators. Just use candlesticks together with Bolinger bands.

I consider this to be far superior to using indicators.

[vladv]

Originally Posted by tymen1

I do not use any indicators. Just use candlesticks together with Bolinger bands.

I consider this to be far superior to using indicators.

Why do you do not use ANY indicators?

[vladv]

Originally Posted by tymen1

I do not use any indicators. Just use candlesticks together with Bolinger bands.

I consider this to be far superior to using indicators.

Why do not use some indicators?

[madpetz]

thats interesting, how much success have you had guys in terms of pips/P&L
do you do do intraday/scalping or monthly?

[szbu]

Originally Posted by bazooko

Here is my risk reward format:
1) Only risk 5% of balance. ei. I have a balance of $1000 * .05 (5%)= $50

2) My risk on this trade is $50, My s/l is 100 pips. NZD/USD doesn't move more than 100 pips in a day vary often. So if you want to use another pair you have to adjust the s/l. EUR/JPY can move 200-300 a day so you would want a s/l of atleast 300 or 350pips.

3) risk/pips= lots size. ei. My risk is $50/ 100 pips s/l = .5 lots on a mini account. So I will buy .5 mini lots with a 100 pip s/l if I go down 100 pips I will only lose $50.

4) When I am 100 pips in the profit I will buy .5 more lots. At every 100 pips I will buy another .5 lots. With a 100pip s/l. Note all buys will have the same s/l.

example NZD/USD
.4300 buy .5 lots s/l .4200 risk $50
.4400 buy .5 lots s/l .4300 (for both buys) risk $50
.4500 buy .5 lots s/l .4400 (for all trades) risk $0
.4600 buy .5 lots s/l .4500 (for all trades) profit $100
.

A newbie question, what's the leverage of this? since it is a mini, you use 1,000 to buy a .5 lots =5,000, is a 1:5 leverage?