Hey guys, I’ve read a few books about Forex trading, and none of them works.
I have backtested two systems and they didn’t work.
The price in time by Gabriel Fabris.
Currency trading for dummies (a few strategies).
Strategy by Caroline Ayuk.
What i assume that if a system works.
a) Make at least 10% a year consistenly
with a proper risk management.
For example, if your biggest drawdown is 60R, risking 2% per trade is not sustainable.
Books don’t “work.”
Traders “work.”
Suggestion: have a look at the Youtube channel of “The Transparent Trader,” have a long, slow, careful look at his systems and see if any of them appeal to you.
He knows what he’s talking about, and they might.
Test carefully.
Don’t rush into anything.
2% position-sizing is huge, absolutely enormous.
Everyone I know who trades for a living uses far, far less than that. And got to a point where they could trade for a living by using far, far less than that.
No criticism, but your expectations might be unrealistic.
Hi, what do you mean by “profitable trading system”? one strategy?
EurUsd: Buy at Support, Sell at Resistance.
40 pip TP. Start with 0.01 lots until experienced.
Double lot size & reenter next S/R level if at -50pips & TP was not hit. Close both positions when the first is -15 pips and the 2nd position is at +25 pips.
If +25 pip TP was not hit, then reenter at double the next level when trade is -100 pips. Close all positions when TP of +50 pips is hit.
If +50 pip TP was not hit, double again at -200 pips… you’re bad at S/R… Close all positions at Breakeven.
What sort of timeframe are we talking about, here, please?
I learned a swing trading strategy from Marc Rivalland’s book. It wasn’t revolutionary and something similar had worked for other people before his book was published and it still works now - I can’t for the life of me see how it could not work…
Any time frame. All time frame same same. Just trade small. Increase size with experience.
It may matter if you’re specifying a 40-pip TP. 
The Price In Time Strategy isn’t bad if you want to commit to trading the London open everyday. That doesn’t work well for my Eastern Standard Time zone but that strategy can work. In fact any strategy can work.
Food for thought:
I know some of us have different thoughts about back testing. But I don’t see much point to it. The only real test is to test what you did over the last x period of time.
There are many proven strategies that have been tested successfully millions of times.
New traders use them and fail at them all the time.
So if you prefer scalping on small time frames, pick any time tested strategy and master it. If you prefer to swing trade, pick any time tested swing trade strategy and master it.
1 million times out of 1 million and one, it’s the trader and not the strategy that stands in the way of profitability.
I am no one special. I’m not any smarter than anyone else here. I spent the first three years losing over half of my initial account. But I have reached the point where when I trade I never expect to lose. Yes, I know it will happen. But it hasn’t happened yet this year and only a handful of times all last year. One of the losses last year was because I failed to move my stop loss prior to the market closing late Friday afternoon. The others I allowed to close at a loss while my other trades were in sufficient profit so that by closing everything I still increased my account size.
Personally, I think I spent 3 years trying to make things more difficult than they needed to be. I suggest that instead of using a back testing program, just look at a chart and see where you would have entered and closed based on your strategy. Then, you need to filter out anytime when there was high impact news that caused a spike to get you stopped out. If your strategy uses a small stop loss that is susceptible to high impact news, trade when there’s no high impact news.
“Wanting to open a trade when the arrow is lit” This request is a common request among losers.
You cannot win without knowing how to trade Forex.
The book “The Caravan Merchant of Babylon” is more useful than the templates.
