Trade what you see; simple trading strategy that works

Trading Systems
1

I have develop a strategy for a long term profit. It is not useful for scalping, but to place trades and hold for weeks for a healthy benefit.

Now i must say that i m not 100% about this because i m testing it now and results so far are satisfactory. Let’s jump in. You will need following indicators to proceed:

a. 2 SMAs. One short term and one long term. I use 7 days and 30 days on daily chart; but you can choose your own if you like

b. Candlestick indicator to suggest which pattern it is likely to take

c. And most importantly, A heatmap to give an overall view of market.

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Everyday, at the opening of NY markets; look at the heatmap signal. When it suggests a currency; look at all the pairs in that currency. But in order for that pair to qualify for the trade; it has to be moving in the trend direction; candlestick must gives the signal of pattern too. As you can see in the pic above; heatmap is signalling strength in CHF and weakness in NZD; price is moving in the direction of SMAs and candlestick is signalling S_E which is bearish engulfing pattern.

Now lets move to fundamentals. Who am i kidding; i have no idea how the fundamental works. Check forexfactory main page to see which one is important and which is not and what impact that news will have or ask any economics expert.

Lastly, your risk management. Never put more than 2% of your total on any one trade; that is a golden rule guys. I survived very long in this business following that simple fact. Here is the simple formula i use: Look at the price; for example, NZD/CHF is currently at .668; now 2% of .668 is .013; since we are selling this pair so we add .013 to .668 and get .681; that is our stop loss. Now calculate your lots using any lot calculator online. Now you are good to go.

Please do tell me what do u think

2

Thanks
Will test it out next week and let you know how i get on
Regards

3

Nice strategy. I will check it.

4

There is one obvious drawback of this strategy; not many trades comes along very often. Which can be every frustrating if you do not have patience. Like today; markets are clearly correcting itself from last week NZD mayhem and there is nothing in it for trade. I can see partial trade of AUD/USD and USD/CAD but nothing much is there.

5

A little change is in order. Earlier in my strategy; i have mentioned a plan to place stop loss. As it turns out it is a very bad idea to place stop loss in that way. There is a better and more appropriate way of placing S/L; it can be done by using support /resistance and ATR.

If we are short on trade that we will take the resistance and deduct atr from it; and if we are long then we will take support and add atr to it. What this essentially does is that it gives you a S/L based on volatility and it is perhaps the best way to place S/L.

Please do criticize this strategy so i can know if what i m saying is actually true or false.