So far. From my point of view, people are skeptical that the market would follow any particular rules most of the time. But it looks like it really does. You just have to know what the rules are.
We do different things depending on whether we are using the daily chart or the 5m or 1 m chart. Beginners may want to have a very small stop loss. More experienced traders they want to have one that is a minimum of 100 Pips.
Once you know the rules the rest is just making it match your own preferences.
I trade kof using the charts that I have. I just have the 9 ema on them and a triple moving average set to 25. That’s the line that turns green yellow or red depending on price direction. It’s best to trade kof when you don’t already have open trades running on another strategy.
That’s going to take a bit longer. First to start by watching his YouTube videos. Just search for king of Forex and there are many videos.
I have Incorporated the cap channel in order to try and lessen the chances of my getting caught in a big loser with it. And quite frankly, I still don’t know how it is that I have never seen the king lose a trade in years.
Also, if you search on Forex factory forums for, countertrend strategy, you will find they have listed the basic rules at the beginning of that forum thread.
Entry is based on how much room there is to make pips before price would hit any of the possible exit signals. Exit signals are the 200 EMA, the mid point line of the cap channel, or the opposite cap channel line. If price is already near one of these exit signals, there is no point in entering a trade.
So you enter a trade either when the macd crosses from below to above or from above to below the 0 line or you look for the seven EMA to cross from below the lower red 25 EMA to above it, or from above the upper red EMA to below it.
The green 7 EMA can also come down from above the upper red and bounce back up, which is another good buy signal. The opposite is true for sell signals.
Ideally, your buy signal will come when price is toward the bottom of the cap channel. And your sell signals will come when price is toward the top of the cap channel. Even better is when the 200 EMA is outside of the cap channel.
If I am trading based on the m1 or M5 or H1 or H4 chart, I do look to the D1 and w 1 charts so that if I am stuck in what looks like a loser on the short time frames I have confidence that there’s a high probability that I can wait it out and still make a good profit.
The EMA cross is a superior signal to the macd signal.
Use your discretion if you’re going to use a stop loss. If you’re using a time frame below the D1 you have to know that you will need a big stop loss in case of any high impact news. If you are trading after the New York market has been open for an hour, you could have an extremely tight stop loss. Your stop loss preference will determine if you are okay with taking a few very small losses in exchange for a big winner with very small risk. Or it will determine if you would rather just take advantage of the high probability that on the longer time frame you will win .
Another amazing week - grew my account 4% in four trading mornings. It is an incredible opportunity and I highly recommend it. It’s really getting me going with my trading and I look forward to it every day. I trade 0.05 lots during his sessions and then 0.01 lots trading by myself, so any mistakes I do on my own are counterbalanced and my account grows while I learn every day.
It’s one of the best things I’ve ever done in terms of investing in myself, learning a skill and making money all at the same time. I’m also boosting my patience, discipline, motivation and self-esteem, all of which have taken a hit in recent years due to stress/burn out at work.
I spent the fall learning MT4 after switching over from my broker’s web-based platform! Definitely worth it - MT4 is great for scalping the 1 minute charts and for the customized indicators. My broker’s platform just couldn’t open and close orders fast enough on the 1 minute charts, or move stop losses or take profits quickly enough. I like MT4 for both @AmericanTrader’s CAP Channel strategy and for KOF. I’m enjoying learning how to trade with both strategies.
