How to choose a system to satisfy me

I am a really fresh beginer in forex trading. I recently finished the pipsology courses. I have to say those courses was really helpful and comprehensive. However, This loads of info make me so confused to how to choose a compatible system for myself. After finishing the courses, I jumped in charts but loads of indicators, chart patterns and lots of other signals made me crazy. I dont know how to mix these options together. I found that I cant wait for a trade to run for days and I think lower time frames are better for me. But as I know, scalping is not a good style for newbies. Additionally, I like to be as a full time trader which seems promising during the courses but after jumping in charts made me a little disappointed. I need u pros guide me the correct way. I dont know how to start and have progression in this way. I will be appreciated if u experienced traders tell me wat to do as a newbie who wants to find a way for his proper system. System on the basis on indicators are better or price actions or I dont know hybrid of them.
Thank u all

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Hi :slight_smile: did you check daily charts? Regards Greg

Hi professor😊
I think it is so slow and I cant wait for it to execute my trade. I used 1hr and according to the system I used, I stuck in it for longer than one day for numbers of trades which was so long too. I am not sure that what is the optimum holding time for each trade in a one hour time frame. I prefer to have more trade per day to give me around 50 to 100 pips or maybe more😊. For instance, I used rsi and stochastic at the same time but I didnt know which one is better for preventing of overbought/sold condition. And as I understand, the ema crossover is not a reliable method for entering due to its lag. I need some guidelines to know that the price action is more reliable or indicators. I found so many systems in the net and in babypips but I dont know which one is better and actually trying all of them takes a long time. If people here has some suggestion, I am really open because at the time, I am really confused due to loads of the info but now knowing how to implement them. I actually need to bright the road by some advice.

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Read turtle trader history :slight_smile:

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What is it?could u send the link?

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Mohammad, Rome wasn’t built in a day. Becoming a successful trader takes time, sometime years, and while I can understand your impatience, my advice is to slow down, chill, and then:

Record all your trades. Learn from your losing trades what went wrong. Start to build a winning system that fits into your lifestyle and works for you.This will be YOUR system - YOUR edge.

To be realistic, in today’s Covid climate, and the uncertainty in the USA election and economic outlook, the world is suffering a highly changing environment with increased volatility that can whiplash anyone out of a trade, almost at will.

IMO, it is therefore better to trade the higher and slower time frames - I’ve now moved from 1Hr to 4 Hr for intraday trend trading. I also consider that trading with low capital increases the risk of being blown out - unless, of course, you develop the patience to trade mictro lots.

Why many established traders fail, is because they cannot adapt their system to a changing environment successfully. Ironically, a newbie has a psycological advantage in that his or hers ‘embryo’ strategy, which should include how the markets work and fundamental analysis, can be designed to be profitable.

My motto is to do more of what works and less of what doesn’t.

Best of luck.

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Thank u for your complete answer steve. Is it a good idea to review others’ systems and apply them to my charts to find a compatible system?

I think you should choose a broker who provide good trading conditions like spread, commission and then you can open demo and try the indicators and make a strategy or yourself accordingly.

@mohammad3799

Why do we you feel you can’t let a trade run for days?

In the old days investors would hold portfolios for years, now it appears five days is too long for many.

Im not ashamed to say I don’t like day trading, and always advise using daily charts for holding periods of say a week.

It means I can go on with my life without excessive chart watching - and really adds to the quality of life.

While day traders are targeting small R multiples, applying price action trading techniques to daily charts can not only yield great risk reward, but also done with alot less stress or time.

Im still trying to fathom why many newbies try the hardest route first.

There are so many potential problems with trading that you may find that having to hold for days is actually one of the lesser problems you will encounter - and you can actually learn to enjoy it

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Hi John,
I am sure that day trading is less difficult than shorter time frames trading styles, but as I learnt from the courses, everyone has to find a system that compatible with his/her personality. I think I am more aggressive than waiting a trade for days. And u are really right, by spending a week I understand scalping is a style that is not respectful to many indicators. I think the best way for me is to start with longer time frames like 4h or even daily and test all indicators and price action methods one by one and after analyzing them, choose the ones that I am more compatible with. Then, try to hybrid them to find a functional one. I have some questions before I start this procedure. Firstly, different environment, for instance ranging or trending, has its own trading system? I mean that my system for a ranging system has to be different from my system for trending peice chart? Secondly, which pairs are better for testing a strategy? I auppose majors are the best but I think according to currencies correlation, is it functional to just test strategies that are just based on usd? And finally, I have a big problem with multiple timeframe technique, whether I have to use it in all systems that I want to devise or not? And according to this technique, I know that after maintaining the higher timeframe trend, u have to return to lower time fram and choose a signal agree with the higher timeframe trend. But I have a problem here, I think it is better to explain it by an example. Consider my main entry time frame is 1hr and I go to 4hr timeframe to find the trend. If the major trend at the higher time frame is for example uptrend but at the moment the price has a little pullback downward. And I found a signal in lower time frame that agrees with my system, Whether I have to enter the trade or wait for a signal that allignes with the major trend which is upward. I wish I could convey my meaning. And excuse me for my long story.
Thanks,

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@mohammad3799
Wow. That’s a lot of writing! Haha

I’ve done the same thing. You’re trying to figure out how to improve.

Checking a slower time frame helps to determine if what you see on the faster chart is just a minor pullback, or trend reversal.

If the D1 is bullish, but the H2 is bearish, then you have to decide what your strategy is going to be.

If you short that pair, it will be a quick trade—just a few hours.

However, depending on your strategy, it could be a good entry for a long trade. But if you don’t have a strategy along with an exit, you’ll get eaten alive every time.

It all depends on what you want to do.

That’s my opinion.

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Hi John. Could you expand on what these price action techniques would include when trading the daily chart? And what to look out for when entering a trade?

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@steve369

Well as you are aware I trade inside bars, but other strategies referred to on my blog are Harami Pin Bars, Smash Bars, my pullback strategy and the inside bar pivot strategy.

Of course they will not yield perfect results at all times, and some markets are better than others.

But I’ve found that many intra day traders go for smaller profit targets - which is understandable because there is usually a pull back of sorts either the same day, or the very next day.

However I’ve personally found that holding trades over night and for a few days can yield solid results with less work - which for me is what it’s all about.

For anyone who has bitcoin on there trading platform I’ve been saying for a while now that this is where the really large money is being made.

That’s regardless of whether it goes up long term or not. The range expansion of price on even intra day breakouts is huge compared to forex, indexes or commodities.

And it’s large range expansion where we make excessive %r

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@mohammad3799

There is a lot to get through there - I would advise you to check out my blog, because it answers some of those questions and there are a number of strategies that I detail - although I personally would not trade them on anything less than an 8 hour chart.

I will say one thing though, I’ve never traded using multiple timeframes. Certainly off a daily chart why would I?

I can understand why day traders do it, however be aware of the fact much of the recommended analysis out there is not there to improve your hit rate - it is merely a crutch for traders who are scared to trade and haven’t mastered their psychology.

Even on 5 minute charts you don’t need to check other timeframes, a few moving averages, or trendlines on the timeframe should suffice.

And all this nonsense about indicators - well it’s just nonsense IMO

Trading is a tough business enough without making systems more complex than need be.

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Thank u john for your reply. I am hoing to check out your profile and try to apply your functional advice in building my own strategy. I am going to use all the indicators and chart and candle stick patterns one by one to filter the ones that are more suitable for me.
Thank u again

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I like this answer. I have been live trading for a couple weeks and recording my trades in a spreadsheet. It is enlightening, educational and helping me develop personal strategies in an intelligent way. My trade game is improving quickly due to this!

You’ll have to waste a few years until you figure it out. In the beginning, of-course day trading will seem like fun and interesting, but you have to figure yourself out on this forex path.

I started out all wanting to day trade, like…I AM NOT EVEN LOOKING ABOVE 4H. But now, I don’t look bellow 1D :sweat_smile:

Why is that? Cause at this moment in time this is what works for me. I like a slower pace, no pressure, HQ setups etc.
Day trading can be more rewarding, for example in day trading you can even get 1:10 R:R moves, but you’ll need 6/7 loosing trades to get that one big winner, and that’s not a price I am willing to pay, cause at the end of the day the profits are bigger the way I am doing it.

Once you figure out your pace, you’ll find the style that fits you best.

p.s: Look, i would love to trade the LOB (London Open Breakout since you’re a newb) but the fact that after the breakout happens i only have 30 min at max to make a decision to enter or not…that’s just crazy. I’ve demo traded that stuff, and the profits are huge, I mean…when the volume is good, Jesus you could end making your whole month’s salary in just 2 hours.
But the stress, having to check up on economic calendar, pressure…it’s just not worth it.

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Hi there,

Independently of what trading system you use, it’s great to have some sense of market direction for the upcoming week. There is tons of weekly forecast out there that can help you out but I would like to recommend you this guys EWPRO. They come up every week with some great analysis of the forex markets and their videos are very educational.

Also they run a course with a system they use and you can see a preview of what they use on this video.

I hope this helps.

There are several fairly common set-and-forget London ORBO systems. One I particularly like for its simplicity works by pre-set order and profits from false break-outs -

  • mark the high and low of the Asian session’s range
  • if e.g. the low is broken by GBP/USD after the London open, set a buy order at the mid-point between the two Asian session range boundaries
  • set a stop just below the low
  • set a TP if required at entry +1.3r

Admittedly, you need to screen-watch until price breaks out but after that you set your order and go away. There are multiple variations on just this one variation.

I think Best way to learn is using forex simulators and practice on History charts and what ever you are learning using in Simulator as i am doing the same.

And then you can jump on demo account and do the same thing what you learned in simulators and apply in demo.

Then jump into Live account with less capital.
Then increase your capital accordingly.
I am using soft4fx simulator. You can give it a try.