iv been trading for a little while and iv read the forexbootcamp book, and i tried setting up my own system using the 14,3,3 stochastics, and 21,55,9 MACD. When the stochastic crosses in the same direction as the MACD histogram. can some1 give me some tips or opinions on this strategy. it usually helps more during trending markets
No offense, but that’s not really a system. A trading system needs to clearly define entries, exits, and stoplosses.
Do you know how you’re going to determine all three of those things? If not you don’t have a usable system.
well i go long when stochastic crosses in oversold AND the Macd histogram is up. the opposite is for going short. I exit either at the next stochastic cross or at 20 pips. My stops are too tight and i know it but tahts just wat it is for now. my stop is 10. i try to have a risk reward ratio of 1/2. im trying to improve my system so i can make around 100-200 pips i month. And i know that this is a small gain in compared to others but im just starting. and i usually try this on the 15 minute chart