If the pair is above the 50 Period MA and the MACD -Historyogram is above and the Average direction Movement is up I trade the pair on the long side
If the reverse occurs I’m in a short position I use to trade this for 1 lot on the majors and make $10,000 a week now that my account is above $110,000 I’m going to add a lot to it and aim for $20,000 a weak till I hit a million and then I will jump to 10 lots and contiue to grow the account.
Also and this is a big rule of mine I don’t trade sideways markets so I don’t get chopped down trying to chase a market that isn’t trending. I also have to trade crosspairs sometimes becuase if one of the marjors is sideways I want to keep my weekly goals and if you look theres always a trending market somewhere and don’t be afraid to trade on the short side those oppurtunities make fast profits and take half as long to make as the market falls faster then it rises. Try this system and only use the daily time frame I do not trade smaller time frames becuase I have a life and don’t want to on my computer all night I also use the fibonccia retracemnts to set my profit targets and my stops
I usually set my profits target at the 61.8% retracement level and my stop at the level below were I enter the position if neither target is hit by the end of the week i’m out of my position and alot of time the same trade goes on the next week till the trend changes or the pair gets above the 61.8% fibonccia retracement level then I wait for it to reverse or break to all time highs.
As long as you stick to the rules you make a nice profit every week I started this account last year with $1,500 and turn it from a micro to a strandard acount and now i’m over $100,000 in it and hopefully within the next year or two it will be well over $1,000,000 using this same rules alls I know is I don’t have many losers trading with the long term trend and using the 61.8% fib. level as my over bought signal.
Just to let you know of my current plays I have longs on the GBP/USA the EUR/USD and I am also long the AUD/USD I see bigtime upside in these trades and as long as the trend stays long on the dality charts I will be in these trades every week taking my profits every friday and reentering every monday. till the pairs go sideways and I play the short side when the pair crosses under my 50 period moving average by the way the 50 period moving average is great for these trades you don’t get wipesawed like you would on the short term moving averages. If you use to the Moving average cross system then use the 200 period along with the 50 period moving average and you’ll do just fine. Pretty soon I think I’m going to start holding these long term trend over the weekends as well to cut down on spread commisions. plus on the pairs I trade I make roll over interest unless I’m short them so it’s worth holding over the weekend to colect the interest and aviod spread commissions.
umm your making some big claims, there, hmm $1000000, really? what broker do you use? trading with 1 lot and making $10000 a week, that means you got
1000 pips week, fame on babypips
Just glanced at this strategy today. At first glance, I scoffed and thought that it was a horrible strategy. Now I’m not so sure. I plugged the indicators onto the EUR/USD and found a nice long trade back on March 16 or so of this year.
The short trades seem iffy sometimes though. Also, you should camouflage everything on the ADX except for the +DI, which correlates nicely because when it crosses over the median line it usually signals a developing trend.
The ATR seems kind of unnecessary. I’d personally delete it and focus on the other indicators, but if you’ve had success with it then by all means.
The kicker with this system is that you need to pay very close attention to the MACD and ignore the signal line. Simply watch the bars on the histogram and as soon as it switches from either - to + (or vice versa) place the trade if the price is above the 50 period MA.
Also, you don’t specify your exact configuration on the MA. Is it a simple, exponential, linear weighted, or smoothed MA? You may also want to consider tweaking the MACD settings to catch the trend earlier, too.
I agree with the fact that you are trading daily charts. They are the best in my honest opinion for catching the big moves and requiring the least maintenance.
I think this system has potential. I also think that you could catch the trends earlier with a pair of moving averages in conjunction with some of these indicators. But if it works for you then press on. You make some pretty big claims and if they are true then my hat goes off to you and I intend to follow in your footsteps with my current system which also trades the daily charts.
I agree with the 2 moving averages I implemted it today sir using the 50 and 200 period if the line crosses the 50 I’m in though becuase it has worked nicely I use the ATR to see what on averge I can expect to make on a daily bassis if the trend contuies to be strong when the ATR decrease I also find that the trend usually starts fading or reverse in total . .
I forgot I also use the Fibonicca indictor as well to see if the trend could have a very nice long trend I guage it to the 61.8 retracement level were the trend as back tested seemd to start fading out sometimes if my ATR fades at near the fib 50% level then I take the trade off there but I find that trend usually get past the Fib 50% line and go straight for the 61.8% level. Above the 61.8% Fib line that when the trends usually come into a consolidation period and roll back over unless there is strong fundamentals to keep it going towards altime highs and if that takes place the the directional movement and average true range indicator plus the 50 moving average comes to play.
I’ve really only seen one or two trends move past the 71.8% fib levels ever and I use to work as a broker for a introducing brokerage firm. I was around as a broker when (/11 happened and the USD/JPY went from low 100’s to about 137 yen to dollar we made some client rich and that’s when I knew I was gonna trade this market myself someday using those same princples the traders at the firm I worked for used. The moving average is a simple moving average I’m going for the long term trend so I don’t worry to much about what happens in the short term prices I also stay in if the direction of my moving average is still pointed higher even if the price crossed it in the other direction as long as it doesn’t hit my stop . I know alot of people that flip out when the price crosses below the moving average but if you notice it is a tempoper cross over and it crosses back above the moving average again soon that is the market makers trying to blow the short traders out of the long term trend then you’ll see the price move back above the moving average for an extend amount of time and the same thing happens in a long term down trend as well the market makers will let buyers come in for a day or so then blow the longs out of the trade and make bigtime money in the opposite direction when the long term trend contuies. When I worry is when the market starts to consolidate that lets me know the trend and biais is changing on the pair. that when I exit. and wait for the next trend or trade one of the crosspairs instead. I get alot of nice 500+ pip trends doing this some last for weeks some for months but until now I just been holding position for a week till I say how much interest you can collect off the right carry trade over the whole period of the trend . Till now I just used one lot per position which I usually have a position on every major trending pair I lucky becuase right now the only major in a consolations is the usd/chf I didn’t like the outlook on a couple this week so I’m only in the EUR/USD GBP/USD AUD/USD and the NZD/USD this week so far I have one position that made is up 20 pips thats the NZD/USD and the Eur and GBP are down 11 pips at the moment and the AUD is down only 3 pips we will have to see were they end the week last week I had an above averge week serveral of them made over 200 pips per position so it will even out if this week only lands me at $6000-$8000.
i look for 1000 pips out of 6 positions for the week thats why I check the ATR of the pair . that plus when the pair is over extended in a trend the ATR will fade too so I use it that way as well.
thanks for sharing your system with us, would you mind posting some of your charts and settings for the indicators? i have been looking for a long term system that works, and if yours is working for you maybe you can help us get to where your at.
i use the 50 period simple moving average
Average Direction Movement Index at 14,14
I use the MACD- Histogram only set at 12-26-9
I use Slow Stochastic set at 14-3-3
that my system when the trend is down on the long term trend is down on the 50 period I’m short and when the trend is up i’m long I set my profit targets at the 61.8% fib retracement level and the stop at the next lowiest fib level on my entry sometimes I get stoped out ealry like on 3 of my 6 positions this week this week I was using 10 stanard lot position sizes becuase the account was over 100K with the remaining 3 positions I close out for a $26,000 profit and now I have been scalping for the rest of the week I’m up to $136,000 in the account now. If my Eur/USD position didn’t get stopped out 2 nights ago becuase of Euro zone news making a drastic move I would have cuaght it for another $15,000 on a 10 lot stanard trade but I place mt stop to close and didn’t adjust for the Euro Zone News so that was my fualt but I more then made up for it tonight placing some 20 standard lot scalp so this week from my long trends and my scalping after I moved out of them I made a $36,000 profit using 10 lot trades for the long trend trades which didn’t let me stay in a week becuase of all the EURO ZONE NEWS but made some decent Scalping trades to make up for it using 20 lots each trade I’m gonna be scalping some more tonight and tommorrow then I’m taking off to the other coast on Friday to have some fun this weekend. I think I’m gonna go back to 1 lot trades for my long trend plays and use 20 lot trades for my scalp and swing trades I was kind of freaked out with the 10 lot trades when the moves started turn becuase a 50 pip move against is $5,000 with 110 lots lol I’m use to it when it is $500 lol but to look up and see you down 50 pips on a 10 lot trade your saying oh **** lol but once the news was discounted the trades that didn’t stop out ran nicely for some reason I set that EUR/USD and the CHF/USD trade to close and they stopped out for $-5,000 between the both of them and I got out of the AUD/USD trade with $12,000 profit and The GBP/USD with a $11,000 profit and mixed action on the Kiwi/Dollar and JPY/USD but all-in all a decent week for all the NEWS that whipsawed these trades back in forth in and out of the positive side.
Your system sounds interesting but I’m a little confused as to what points you take your fib levels from and to. I assume you use the previous trend. Grateful for clarification.
I am curious what you are looking for with the ADX. What level is it supposed to pass in order for you to enter a long trade (as long as other parameters are correct)? It looked to me in Phantom’s post that it should move above 20 but I am still unsure. Thanks.
I noticed in Phantom’s post he said to go to settings for ADX and camoflague all but the +DI. This helped for me as it was quite confusing with all those lines everywhere.
I like the sound of your trading style/method. It follows the KISS principle, “Keep It Simple Stupid”.
As a very new FOREX trader (<2 weeks) still using a demo accounts, I am looking for a “system” that is very reliable and not very time consuming. I like trading but don’t want to get burned out on it or have to be glued to a computer 24/5.5.
Usually when an originator stops answering questions on his/her system I reckon that you can assume that the system is not as good as expected. I for one won’t be testing this system unless the questions have been answered. C’mon mate, your system looks promising, so prove me wrong by responding to queries.
