I have been trading FX for a couple of years with mixed success.
I am coming to the belief that trade FX in TFs less than the Daily is a fool's game.
Therefore in the spirit of KISS my plan is to select a simple trend following system comprising of ADX and SMAs (possibly in the form of a SMA channel).
My plan is:
-- Determine trend based on Daily chart
-- Verify trend is in line with Weekly trend
-- Entry by setting limit orders on Monday mornings based on H1 charts
-- Set wide SL based on 2XATR or 50SMA which is further away
-- Position size for SL not more than 2% of capital
-- Once in profit by 2X ATR set to trailing stop
-- Let profits run without profit target
-- Only 2 entry orders at one time
-- Add new entry orders only when preceding trades are in profit with trailing stops
-- Close trades on Fridays (before NY 12pm) [unless there is major event prior like NFP or FOMC]
-- Repeat on Mondays
Surely if you enter based on the 1 hour chart you are trading the 1 hour chart. To trade the daily would mean taking set ups on the daily. I take trades on the 4 hour and the daily using 60 sma and fractals and using atr for targets.