Good Day Everybody
I am a new trader and poster on the forum. I have just finished the school of pipsology which I thought was great and amazingly structured. I have since then attempted to develop a strategy to suit my style. I want to execute day trades on the com dollar pairs as well as commodoties if a certain set of conditions (4) have been met. My strategy is as follows;
Price reversal confirmation
Currencies: usd/cad , aud/usd , nzd/usd
Commodities: Gold, Oil
Risk Capital: 1-2%
Risk reward ratio: 1:3
Read All Daily news reports; do not trade on days of large news events
Apply following indicators on 4 hour and 15 min chart
Evaluate 4 hour trend for current trend
Use 15 minute chart to determine entry and exits points
1.Apply 5 EMA to chart
Apply 10 EMA to chart
- When 5 EMA crosses below 10 EMA then Sell.
- When 5 EMA crosses above 10 EMA then Buy.
2.Apply RSI (9) to confirm Trend
-Sell signal when <50.
-Buy signal when >50.
3.Apply Stochastic (10,3,3) for Overbought vs Oversold.
- Sell signal when overbought.
- Buy signal when oversold.
4. Apply ADX: Average directional index
20-25: Current price action is running out of steam = Trend Reversal Confirmation
What do you think of the strategy? I would greatly appreciate your input and feedback.