Hey guys, me again lol.
Wanted to start another thread with my trading strategy. I don’t really have friends that trade and here is about the only place I get to chat with like minded folks about trading. My wife just turns her head sideways once I start talking about charts and her eyes gloss over. lol. I enjoy getting other’s opinions and bouncing ideas off each other. Never know what you’ll learn plus keeps my mind off my charts as trades are running.
It is price action based mostly from this thread on babypips.
I backtested for about 6 months before I started trading live with this strategy as well.
Read through the first 3000 or so pages and built it from there, I have a few different changes I do.
I trade based off support and resistance zones(usually placed around round numbers), use inside bar, engulfing(outside bar really), pin bar, and 3 bar reversal. Along with seeing the chart and what the whole picture says, just don’t trade based on a candlestick pattern but use them as a confirmation. Also have a few rules I go by.
Trade off 4HR charts.
Look for reversals and trend continuation(after breaking through a zone and retesting).
I cancel if I place an order and the order isn’t active for 5 candles after(which is 20hours). Or if the following candle retraces past the high/ low of previous candle.
Support and Resistance: Usually place them around a round number. No one ever says “hey, you think AUDCAD will get to 0.93156?”. No, usually in conversation traders talk in round numbers such as 0.93000. Doesn’t mean it always happens like that but the important zones are usually around round numbers.
Entry is placed at the high/low of entry candle, with the stop being placed at the other. So if it’s a bullish candle and our position is long the order is placed at the high and the stop loss is placed at the low.
I set two profit targets, my full take profit(FTP) is at the other zone, support or resistance, I also set one usually half way or where I think there may be trouble, I call that one take profit 1(TP1). Once at TP1 I close half my position and move my SL to BE.
Candles/ patterns I look for, for entry.
*Inside Bar : the more inside bars inside the mother bar the better. But I will play just a two bar inside bar. I play the break of the mother bar but depending on if I’m sitting on support or resistance. If I’m sitting on support I look to play the break of the top of the mother bar with my stop at the bottom of the mother bar. I cancel the trade if it heads the other direction or if by 5 bars it hasn’t triggered my trade.
*Pin Bar : Trade them at the top against resistance or the bottom sitting on support.
Example of how I manage a trade.
*Engulfing : Trade them at the top against resistance or the bottom sitting on support.
*3 Bar Reversal : Used as a reversal as well. For example as a bullish reversal, first bar is bearish, the second bar close is lower than the first bars close. Third bars close is higher than the first bars open.(You’ll see an example on my charts below)
*5 Bar Pattern :
I’ll start posting charts as I go through the weeks. I’ll have a few I’ll post from this week. Feel free to ask any questions or comment. Also recently became a funded trader through FTMO, so excited about that as well.
Weekly Results: W-L Pips
Week of 7/11/21 9-4 375.4
Week of 7/18/21 5-2 240.9
Totals 14-6 616.30 pips