The theory behind this winning strategy is based off setting a standardized trade size, a marginal stop loss and picking a reasonable target. Each month the goal is to double my account balance by trading the same trade size each trade until the account balance has doubled. Under no circumstances raise or lower trade size until the account balance has doubled or until the trade size cannot be fulfilled. At that point, if not in profit, fund account back to original account balance and start over.
In order to piggyback off EUR/USD I follow a basic set of rules.
- Only sell resistance on 1hr/4hr levels [SHORT ENTRY]
- Only buy support on 1hr/4hr support levels [LONG ENTRY]
- Always set a reasonable stop loss, try to keep risk 1:3 or better (a stop 15-30 pips away from a resistance or support level is generally safe from my observations)
- Do not always hold until Take Profit
what I mean by this is if you get spooked (scared) get out, close your position.
Take Profit early at times. If you feel a red flag or a reversal imminent do not be afraid to Take Profit at any time!
- If Spooked wait a safe amount of time (a few hours to a few days) until the market has moved enough to set up for the next trade. This depends on your trading psychology and mental fortitude. If you are calm and in control feel free to place a trade at the next available opportunity.
- Do not hold until SL, be reasonable, but ready to close prior to stop loss. Do not get spooked.
IF your stop loss is hit that is okay, that is what a stop loss is set up for. The goal is to determine you are wrong prior to hitting your stop loss, get out and suffer minimal losses… then wait until next set up is ready.
- If Spooked wait a reasonable amount of time until you are calm and in control again prior to placing next trade.
- Stop Losses are never changed. Place a good stop loss at order entry and do not change it.
Even if in profit do not move stop loss to break even. Do not touch it.
- Exit at Take Profit if possible, or a little early. If Spooked (scared) take your profit!
- You can move your Take profit but never move the stop. As soon as a stop is moved the market is notified and the broker can spike volume and stop you out.
- If you are stopped out or take a loss and mentally are emotionally effected by it, STOP trading. Take a break. A few hours to a few days, each person is different.
- If you take a loss period, take a minimum 2-4 hr break before re-entry.
- Do not read news, add indicators to charts, watch the economic calendar, or listen to Powell. None of that matters and effects this strategy. Simply sell at resistance and buy support on primarily the 1hr and 4hr intervals. Set a stop 15-30 pips outside of entry, set a target at next support or resistance level and get out.
- If you take a big profit/hit a home run, take a short break before re-entry. Let the gains solidify, do not be afraid to take a day or two break until you get comfortable winning excessively.
- IF Spooked, do not be afraid to re-enter, just make sure trade is still 1:1 Risk reward minimum.
You do not always have to get out at a support or resistance level. You can always take profit early or if spooked, Just try to wait to get in at support or resistance levels on 1hr/4hr.
- Do not change trade size until account balance has doubled. At that point, double original trade size.
I started with a FTMO 50k demo account on MT4 on 5/11/2021 following these rules and have since turned that into 105k+ in 15 days. I’ll post info on that tomorrow.
Last night I started an Oanda demo account with 5k. The goal with this 5k account is to replicate the 50k account just scaled down. If I am able to continue to replicate success and at least have doubled my 5k demo to 10k by 8/11/2021, I will fund an Oanda Live account with 5k and follow this exact strategy.
This is my third trade on my 5k account and is my current position at the time of this post. (at the time my account is at $5562 after two profitable trades on day one)
I shorted EU at 1.2188 and my TP is 1.2165. I set a stop loss at 1.222.
My next trade…
I think 1.216 is a great support buy so I have a limit order at 1.216 for 130000 units on oanda to buy EUR/USD off my 5k account (same trade size I will use until i hit 10k). I have my stop loss set not too far away at 1.2142, and my target is the next support level at 1.226.This puts my risk around 1:5.
Stay tuned, tomorrow I’ll post today’s results and where we expect to enter next.