HELLO TRADERS–CAPTGRUMPY HERE with a very simple ,very easy to use Fx trading plan ,using only one element (WMA12) plus a chart line that will produce lots of winning trades.You don’t have to be a rocket scientist to work this plan–it’s so simple that even a brand new newbie can do it…Along with the W12 is chart line–it doesn’t matter which one–either the candle sticks or the heikin-ashi candles -they are there because there has to be a chart line–they have practically nothing to do with spotting or trading trade points(.Is that a real break-or what! The candles supply some color a give a feeling of action.This is a swing trading system for longer time frames like 1 day charts that only have to be checked once a day,at dayend/beginning,which on my charts is 0000 hours (oanda charts),so you
don’t have to be at the computer all day.That would be great for traders who
are working full time.OK so let’s get on with it!!Any combination of the following currencies can be used–AUD,CAD,CHF,EUR,GBP,NZD,USD–
–choose several pairs to your quote list----to start bring up the GBP-CAD
1 day chart --select the candlesticks as the chart line-give the up and down
candles contrasting colors–add the WMA12 (W12) and give it a contrasting
color and set the ‘style’ at thick–zoom in on the chart to maximum resolution
then back off 5 or 6 clicks–the small icons rt.lower corner control resoluion.
The candles are now solid blocks – Enlarge the chart to full screen size for
greater detail viewing–The chart is now ready for some trading action.
So the solid bi-colored blocks dominate the chart with the WM12 (W12_)running along with then showing the up and down trends>t is when
the W12 makes a definate chjange in direction that trade are made.At a W12
direction change a trade is opened (Entry point)–W12 is followed until the
next W12 D/C where the open trade is closed (exit point)–now that the W12 has changed direction a new trade is opened in the new W12 direction–again
the W12 is followed to the next W12 D/C – trades are done–keep repeating
this procedure as the chart moves across the screen–There will be some really nice long runs,and also some very short runs–all runs as indicated by the W12 D/C must be done to stay on the W12 trend,even if this results in a
small loss loss.–To make a trade click on the W12 at the point where it changes direction–the price will be the current price -when this is done just
after 0000 hours the current price will be at ,or very close to,the opening
price for that block. PTP’s (potential trade points) . As you can see the
candlesticks (blocks) play no part in the spotting the PTP’s or in the trading of them—Well that’s about it–short ,simple,easy to use ad will produce lots of
good winning trades
I’ll leave the use of stop loss and take profit up to you–I would remind you
to set the S/L far enough out that your trade won’t be stopped out too soon.I think it should be at least 100 pips–As for the take profit -that can be set at any price you want or you could let the trade ride until closed at the next
W12 D/C-- if the trade is closed at a S/L you’ll likely have to wait for the next
W12 D/C to open a new trade–If you see, at chart check time (0000 hrs),
that the chart has been closed by the T/P --if the W12 is still on a good trend
a new trade could be opened at the beginning of the next block after the closure .Now I;m sure I don’t have to tell you that a lot of practice should be
done back testing several charts to get the hang of the procedure,then some forward testing and active practice trading and finally if this plan works for
you perhaps investing some real money would be the, next step–just make
sure it works before investing any of your own money!
Just a reminder that only one pair is traded as it goes across the chart-keep
accurate records–each pair traded should have it’s own account or a portion of the main account set aside just for the one trade–this way you’ll know exactly how this pair is doing.
There are always questions on the forum about how much money is needed to start trading–there are equally as many answers,but the primary factor is
how much can you afford to lose if things go wrong–the more you have the
faster the account grows providing you have enough good winning trades–but also of course the faster you can lose bi
g time if you don’t have a good Fx
trading plan-My own feeling is the minimum ideal amount would be $2500–
$5000 would be even better–very small accounts means very small trades
and a long time to build the account up. It is also recommended that no more
than 1-2% be invested for each trade–I prefer 5% for one trade only so that
would mean you’d trade about 3000 to 5000 units(margin under 125) so that limits you to only a few pairs with a margin that low…just my thoughts on this subject–I hope you find this simple plan will be of some benefit to you
Good trading to you-----captgrumpy
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Thank you for sharing the system
HI dumb question is W12, like week 12? i following wha your saying but i dont get what you mean by W12?
If you read the Captain’s post above, you’ll see that it’s a 12-period weighted moving average. 
hi robotrades W12 is a–short cut for WMA12 (weighted moving average.It shows
the chart trend–a trade is opened when the WMA12 makes a definate direction change–then followed until it changes direction again when trade is closed then’immediately a new trade is open .Like I said there will be some pretty good
runs ,but also some very short runs–This plan is for swing trades-you may have a trade open for several days , even weeks–thanks for responding !!
Ah I see because I looked for it on my indicators on my trading platform and It only came linear weighted moving average (LWMA) and I added it to the chart see what it was. And on my platform it’s just a SMA but very close to the candles but hard to explain but I think you’ll get what I mean. I also set it to a period of 12 and I see what you mean in the pairs I traded I could of had open a lot more trades.
I’m also going to play around with it on demo because I think I may be able to use it to see when a trend could be forming or changing, etc. See if it acts as a good early indicator maybe.
But thanks guys told ya it was a dumb question
So, if I understand this correctly, every 12 movements “up/down or sideways” (or so) take your profits and start the process again? Just keep moving your stop loss to the next begin point?
Last question, what is the reference to 0000 time? Is that the reset of the new trade (if any)?
00.00 hours is the beginning of the 2400 hour day–that would be 12,00 a.m.
on regular time
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Hi moneytrader 2018 captgrumpy here! It seems obvious by your comments
that somewhere along the line you misunderstood the instructions about this
rather simple trading plan using just the one element ,plus the chart line that you have to have.So lets see if I can make the plan clearer----
First of all the chart has to be set up as laid out in the plan so you end up with
two elements on the chart–the Weighted Moving Average (WMA12)which I
shortened to just (W12),and the chart line(- candlesticks-)-While the candlesticks look nice as they run up and down across the chart,but for this plan ignore them–the only thing you are concerned with is the WMA12–this
line shows the chart trend as it moves up and down–it is when the WMA12
makes a definate change in direction that trades are made by clicking on the
spot where the WMA12 made the change–the trade is opened at the current price at time of the trade–now you simply follow the WNA12 line (W12) until
it chanmges direction again–close the open trade—and immediately open a
new trade in the new W12 direction–again follow the W12 to the next direction change–close the open trade–open a new trade–keep on repeating
this procedure as the chart moves across the screen.This is a trend following,swing trade system --you can’t get anything much simpler–I don’t usually use a stop loss although most would rest easier with one–because this is a swing trade a bigger stop loss, like at least 100 pips,would likely be OK–
as for a take profit–you don’ need one just let the run go until the trade is closed at the next WMA12-- This plan may not make you a fortune,but it can
supply some nice steady income without any hassle what ever!This afternoon I went back on the USD-CAD 1 day chart to see what results this
method would produce–so bring up the USD-CAD 1 day chart and follow along as I show how I used this one element plan(be sure chart us set up as directed!)
Go back to 20 Dec 2017–here there is a definate WMA12 direction change at the top of a run—a good spot to start trading —open a sell trade at the change point–For this demo the price shown will be the closing price listed–on real trades the price would be
the current price)–trades as follows;
20 Dec sell 12874 @ 23.45 hours to 24.00 hrs–( Just
before midnight,which is the end of day
on my chart (oanda Fx Trade program)
now follow the WMA12 to the next W12 D/C
(direction change)–close the open sell trade as follows
2 Feb 23.45 hrs close 12427—now open a new buy
trade–(same price-only takes a min.or so to make
trades so price would not change)
pips gain +447
2 Feb 23.45 hrs Buy 12427 follow W12 up to
21 Mar 23.45 hrs close 12892 open new trade
pips gain +465
21 Mar 3.45 hrs sell 12892 follow W12 down to
20 Apr 23.45 hrs close 12766 open new trade
pips gain +126
________________________________________________20 Apr 23.45 hrs Buy 12766 follow the W12 to
9 May 23.45 hrs close 12833 open new trade
pips gain +67
________________________________________________ 9 May 23.45 hrs sell 12833 follow the W12to
22 5 May 23.45 hrs close 12857 open new trade
pips gain +17
22 May 23.45 hrs buy 12857 follow the W12 to
30 May 23.45 hrs close 12873 open new trade
pips gain +615
Total trades–7 --0 losses --Total pip gain–1737
End of demo–I hope this has shown how trades are made–
sometimes the WMA12 D/C is not clear so trades are made
when you are sure the WMA12 has changed direction—I
suggest you back test this system on several charts to get the hang of it then do some forward testing before investing
any money-- Does that help clarify how trades are done?..
_
May work well in smooth long trends such as in the above example, but there are often periods where the market is not trending. In the period of 5/6 weeks immediately prior to the example above we seem to have a run of 6 consecutive losses?
