I have been an inactive member of this forum for several years now trying to get my pieces together after blewing a $5.000 dollar account, real money yeah.
After that, I have been trading demo firsly because forex markets scare the s*** out of me and secondly because i dont want to go in there agin with real money; not until i have a good trading system that makes me feel confortable.
I have been trying to develop an easy system that can provide me consistent profits and i think that i have found it. I have been demo trading a $5.000 account and right now i have it in $54.000
This is not a "strategy" because it doesnt have a set of rules you have to follow, and maybe that is the main reason why I have opened this thread, because I want you guys to help me with entry ideas.
This, more than a strategy itself, is a way to define "good conditions" to trade in a predetermined directios (long or short) but I need help in actually developing the entry rules.
I blindly believe that "trend is your friend" and thats why ALL of my trades have a risk reward ratio of 2:1 (this is what really turned my trading around)
Ok, enough talking and lets go to the charts...
Look at this chart... it's the 4Hr chart and it only has 2 indicators, an Ichimoku cloud and Heiken Ashi candles
Ichimoku cloud its set to (1, 1, 20)
What I´m really looking for here in this chart is to define a LONG trading period or a SHORT trading period.
When the cloud is green and the candles are green, we are in a LONG period.
When the cloud is red and the candles are red, we are in a SHORT period.
After I have identified the LONG or SHORT trading periods, i highlight in just for visual help; like this...
This is still a 4 Hr chart and the only thing I did was highlighting in a green rectangle the period in which BOTH the cloud and the candles where in AGREEMENT t go up and in red when they where in AGREEMENT to go down.
After I define this, I go to the 5 minute chart to trade in that direction and only in that direction.
And here is where I need your help guys, this is where I want some ideas to time our entries... i really dont have any; I have tried BB, envelopes and oscilators but I'de like to have a different approach.
I only place a 2:1 risk reward ratio trade in the direction of the trend and just wait for it to reach stop loss or take profit (it usually goes for the TP).
This is how the 5 minute time frame and how it looks in LONG PERIOD
As you can see, trading longs here is profitable.
And, this is how the 5 minute time frame looks in a SHORT PERIOD
Pretty easy to be profitable only trading shorts.
Once again guys, please help me time my entries and identifying good entry points to have more winners than losers.
Since all of myt trades have a 2:1 reward, I only have to be right 38% of my trades to be profitable but with better entries I believe i can take it to a 50-50 or even better a 60% aquaracy level.
Thanks in advance for your comments.