This will be a daily system for EUR/USD I plan to test on a demo account before deciding to go live. Here are the details:
Goal: Annual return of a minimum of 50%
Indicators:
200 Simple moving average
R/R ratio:
1:1 100 pip take profit and stop loss
Pair:
Eur/USD
Broker: IBFX (starting with $5,000)
Money Management: Each contract will be equal to .1 lot. To begin open 1 contract based on below signal for long or short. If a win is obtained, continue trading 1 contract. If a loss is obtained then increase by 1 contract for the next trade. Continue to do this for each consecutive loss. Once a win is generated after a loss, then reverse the contract size by 1 until back to the original 1 contract thus eliminating all the losing trades.
Opening a trade:
Long - at the open of a new candle if the previous candle closes above the 200 SMA
Short - at the open of a new candle if the previous candle closes below the 200 SMA
Set take profit and stop loss to 100 pips. The spread should be included in the stop loss and excluded in take profit. If position doesn’t close out by the next day then leave it open until either the take profit or stop loss is hit.
how’s this working for ya? i’m a big fan for simple system like this. Am sure going to check for your update from time to time
oh i’m just wondering though. Since it’s 200 SMA, there’s gonna be alot of price that falls into the category of your entry signal, won’t it? That would make any entry random right? : S
I am using the 200 SMA as my trend tool. Any previous candle that closes above it will constitute a long for the new daily candle and opposite for a short. Losses will be dealt with through money management. Thanks for stopping by.
