A framework for trading

Hey guys long time trader here who got started in forex with the help of this website many moons ago.

I have learnt a lot since with both the free education this website provides and by trawling through the internet finding some excellent courses as well as some shockers spending a fair bit of money along the way.

I have developed an understanding of forex that is unique and logic based. I do not have a set strategy but instead take trades on an informed analysis of the current market state across EUR, CAD, GBP, USD, NZD,CHF,JPY,AUD.

I would like to share with you my framework for trading which is by no means set in stone. I am open to suggestions to improve, and hopefully you can use my ideas to help improve your own strategies as you see fit.

The best way to do this will be to post trades and explain my reasoning along the way.

Cheers. :slight_smile: :slight_smile:

Hello forexslams,

and welcome back!

We look forward to your posts!

Hey guys,

Buying and selling retracements is my thing.

Here is an example of a trade i am currently following.

NZDCHF has been retracing downwards for about a week.
I am now looking to catch the next move up.

I am always looking to take the big candles in forex.
If a trade is successful for me, the market will blast quickly towards my target.

These sudden moves can be anticipated for an excellent risk reward ratio usually 2/1-5/1 range.

If my analysis resonates with someone else attempting to long NZDCHF, or any other trade I post
it may be of great benefit for ideas to be shared :slight_smile:

Another pair I am following is AUD. In particular AUDJPY.

Here is how I view AUDJPY for a potential long.

My analysis is purely price action based, but this is not to say I do not respect the news.

Important AUD news is coming up at 12.30am gmt. If this pair makes a higher low just before the
news it could be worth going long to take a big move.

If anyone shares sentiments that AUD is ready for a move up please do share and we could discuss this
potentially big move. :slight_smile:

As predicted AUDJPY made a higher low before blasting upwards with the help of the news.

If you caught this and you are wondering to hold on or not I would recommend leaving it on with stops at break even.

This is more of a gut feel and taking profit would also be a perfectly sensible move. :slight_smile:

However, there is always the chance that this could turn round, so if you take profits now there is nothing too wrong with
4/1 at least off this trade right?

Oh yeah, I would scrap NZDCHF as well it looks too risky now.

New trade looking to long AUDCHF.

Looks like the retracement from the news is coming to an end.
There is a chance to take this for a long.

I always trade 2 time frames. On my previous trades I was trading daily/4hr time frames.

Here I am trading the 4hr/1hr time frame. So if the move is successful it will be smaller but
nevertheless a good risk reward ratio.

Would be interested if anyone shares sentiments or even if they don’t! :slight_smile:

If your currently in this trade and you entered close to where I posted the final circle I would move
stops to break even and let this run. :slight_smile: :slight_smile:

I would close AUDCHF now as it has reached its target as seen below.


This trade worked out for at least 2/1 or better depending on your entry.

I will go through my trades and review them in more detail over the weekend. :slight_smile:

Sorry slightly confused the above post by attaching the AUDJPY image when I should have just
added the screen shot of the AUDCHF reaching its target. Could not remove it properly my bad.

How my analysis could benefit your system

As you can already see from my first few posts, my strategy is to catch the big moves.
Of course I have wins and losses like every trader and they dont all go as well as I have started out here!

I would view my analysis as a worthy addition to many strategies. Here are a few examples.

Pure fundamentals trader. As demonstrated last week in the example above price action analysis will often fit in and respect a given
news event. This is a topic I am most willing to explore, as I do not full understand whats causing this.

Small risk reward traders- Traders looking to make quick small amounts will want to avoid potentially large moves. Those traders who do not use stop losses will also want to best avoid a potential strong move against them. If your system is about
trading for small risk reward ratios eg. 1.10 then these big moves against you could be make or break.

Set take profit traders- Traders who share my sentiments for a trade and have set targets could earn a greater amount by
letting your trades run longer. You could be in the right direction, but lose potential profits by not realizing from my analysis that the market was slamming!

Optimising my trades for maximum profit

Another and probably the most important factor is how to take the most out of a trade.

If I worked with someone whose strategy allowed me to improve the percentage of certainty about
when I could run a trade past its recent targets that would add huge value.

As you can see in the example above AUDCHF smashed through its recent highs on the daily.
I closed my trade at recent highs for a 3/1 profit as posted earlier in the thread. When in hindsight I should have let it run.

I hope to find a trader whose strategy would align with my own dynamic analysis to take full advantage
of this style of trading. :slight_smile: :slight_smile:

Hey guys anyone share sentiments on a GBPAUD long?

I see CAD getting weaker across the board.

Looks like were getting read for slam candles on GBPCAD.

Anyone share sentiments for a long on GBPCAD?

Hey guys I would avoid this trade now.

This is because CAD has made its move across all the cross pairs and weakened with slam candles as predicted. GBP was the exception which itself weakened blocking this trade from a successful outcome.

EURCAD was the trade to be on I should have known it!

Here you can see CAD crashing across the board.

I see a move coming up on NZDCHF for NZD weakness.

I would now scrap this trade for a tiny loss due to changing market dynamics!

Everything has to be set up perfectly for me to be in on a trade.

If you have sentiments for NZDCHF i would enjoy a discussion and sharing of ideas :slight_smile:

Looks like GBPCAD is finally playing out for the slam.

I see a big move playing out on the monthly timeframe on EURNZD for NZD weakness.

This is a NZD move across the board.

Here is the monthly time frame.

Here is my analysis on the weekly time frame.

Would be interesting if anyone has a fundamentals outlook on this pair, or AUDNZD which i can see making
a similar move.