Price Action for Profit - 4h

Trading Systems Free Forex Trading Systems
1

Hi traders,

I took some time away from Forex after blowing my first account, put simply this was to do with overtrading and jumping around looking for the correct strategy. I now realise this is almost a right of passage for new traders so I am lucky it was only £250.

I have reassessed and am coming back to the charts with a fresh set of eyes/thoughts. My goal used to be 1% per day. I now think that whilst this is possible, to make it possible is probably too risky. My new goal is make profit month on month, whilst sticking to a system like superglue (just on a demo to begin with).

System:
All Major pairs, potentially some crossovers.

  • On a 1W and 1D chart, plot key support/resistance lines.
  • Plot trend lines on 1D chart
  • Wait for price to near a key area (either of the lines plotted)
  • If Stochastic shows a bounce from that level (overbought or oversold then start looking for PA confirmation)
  • Wait for price action signal at those areas - I am only using pin bars and engulfing candles for this at the moment
  • SL - A few pips below recent low (taking 2xATR into consideration here as a guideline)
  • TP - At a level that it is bound to go to if the trend is confirmed (in a trend, the recent swing high for instance)
    Only taking the trade is we have >2R R:R, and only risking 1% of my account on each trade,

Staring account £10,000 - Date 01/03/2021

The main aim of this is patience, I should be able to catch all but 2 of the candle opening every day and will only trade on a candle open on the 4h.

Any advice please let me know, I will post all trades here, as well as their result.

2

Welcome back with the right mindset now in place. With a price action strategy, while key support and resistance levels are a signal, they’re just a guide to possible reversion.

The key price driver is supply and demand, and high volume. Which means in today’s Covid environment, market sentiment reacts quite quickly, but short term, to what’s fundamentally happening to the major currencies. Bear that in mind.

I also consider a £10k demo account to be OTT, when your experience has been with a £250 amount, because I suggest that the overtrading and lousy risk management that caused your loss, would continue - as there is no account control in place, apart from your desire to act competently now.

Your goal to make profits every month is not practical, as you will suffer losses, which means the above paragraph concerns will be tested.

You could ask the broker to limit the demo account to £1,000 with a 1:100 leverage, and then trade the micro lots like it is a live account in action. That’s how I began to test and tweak my strategy while trading sensibly throughout. It took me 33 weeks to become a consistent breakeven trader.

Best of luck on your journey, great perseverance brings success…

1 Like
3

Welcome back and good to see you’re back with a better strategy in hand. Just a curious question, did you try this strategy on the demo account? It’s always better to test things before going live. Isn’t it?

4

Your strategy looks quite alright to me, I would just suggest using a lower trading amount though.