G31's 4HR FOREX TRADING

This thread is going to be a trading journal for my trading methodology that makes entries based on the close of 4 hour candles. Upon closes above resistance trendlines or below support trendlines, if the RSI also breaks 50 in the right direction, I will place a pending order above the high of the breakout candle for a long, or below the low of the breakout candle for a short.
Stop-loss is based on the high or low swing of a 5 ema.

I will be giving entry prices with stops and limits that I set, and then I will post again to either cancel any of the entries or tell when to move stops or to close trade manually.

All trades have initial stops and limits set at a 1 to 1 ratio, and the position size risks 2% of my total account size based on the size of the initial stop.

I have traded this system live for 2 weeks now and demo many weeks before.

My live results have been a 12% gain my first week, and a 3% gain my second week.

With the close of the last 4 hour candle which happened about an hour ago, there are 2 pending orders based on my system:

  1. EURUSD - SELL @ 1.5030, stop: 1.5088, limit: 1.4973

  2. USDCAD - BUY @ 1.0521, stop: 1.0452, limit: 1.0590

Hello g31forex,

Do you have charts explaining your system? How did you come up with these figures?

Thanks in advance!
Czar :slight_smile:

The trade entries are based on breaks of trnedlines with substantial retracement, and the actual pending order is placed ahead of the closed candle where the signal is generated, with the stop placed behind the recent swing of a fast ema and limit placed with a 1 to 1 R to R ratio.

I’d like to paste the charts for the cad and eur entries but when i try to insert the image it asks for image URL and i dont know what to do - the images are saved on my computer??

The attached picture of my chart shows a break below the red support line formed on the candle with the red arrow pointing down to it. The RSI breaking below the 50 level(another red arrow pointing down) confirmed the sztrength therefore i placed a sell below the low of that candle, and used a swing high of 5 ema for a stop. Since 2 candles later, the RSI passed back over the 50 level (green arrow pointing up) without the entry being triggered, I cancelled the pending order.


So the pending SELL on EURUSD @ 1.5030 has been cancelled but the pending BUY on USDCAD still remains, since the RSI has not dropped back below the 50 line.


USDCAD - BUY @ 1.0521, stop: 1.0452, limit: 1.0590 was triggered and now I move the stop to 1.0489 to cut the risk in half.

Also, I took a position at market value:

GBPUSD was SOLD @ MKT 1.6576, stop: 1.6663, limit: 1.6489


On the GBPUSD short I moved the stop to 1.6620 reducing the risk to 1% for this trade also.

Both the USDCAD and the GBPUSD positions were stopped out where the risk was reduced to 1% each, so my account lost 2% out of those 2 trades. There were 4 other trades I made before the end of the week, but I placed the orders after waking up in the middle of the night when I checked the close of a 4HR candle and decided to go back to bed before making blog/thread entries and I don’t want to post trades after the fact and make any claims.
Next week I will try to post every trade and pending order that I make - so that I can better demonstrate the effectiveness of my strategy