I used to be a long term trader using the 4h charts and such, however sometimes the retracements could be 50-80+ pips. I just think it wiser to take profits when you have them and wait to enter the trades near the ends of retracements (of course nobody knows the EXCACT end of a retracement).
My favourite time period for Simple 7 is 15m, I can and have used 1h. 15m works great because you can see directional changes in the market alot faster than 1h, 1d charts (less lost to retracements or even market reversals). Less than 15m can be misleading about the actual trend of the market and very often does not lead to 10-20 pips ema crosses.
I believe the Simple 7 strategy is great for entering trades. As for exiting you have to use your own trading abilities. If you look in the last week of my trades posted, one of the trades was for about 46 pips, that was one where I manually moved the SL a few times and then set a trailing stop loss for the close.
I can tell you the simple 7 strategy has a very high rate of success leading you into a profitable trade, if you are able to exit in profit is up to you. During my time as a trader I have learned many ways to manage trades and use several methods depending on the circumstances to manage trades. When I am not able to watch the trade, I set for example 10-20 pips TP and 10-20 pips SL and go to work for the day.
I hope this helps, many pips to you traders, be blessed!
I did like using the 15m chart. It was easy to keep an eye on 15m charts while trying to lean more about forex.
I thought maybe to close the trade when the candle’s come back over the 7, but when I back tested that day, it would have lost more trades. That’s why I just set 10 TP and 20 SL. Doesn’t seem like good risk management though, 1 bad trade can wipe out 2 good trades.
I’m thinking maybe the best way to watch for retracements with this method are just basic candle patterns?
I do keep a trade journal to try and keep track of what I did wrong. Going to give it another go Monday
I would rather not put this kind of stuff in the thread, but try using the 20 period RSI level 50 as a exit. After 10-12 pips profit simply set your SL to breakeven and move SL into profit as the price action allows. After 10 pips into profit close half the position and let the other ride based on your 1h chart anaysis… Many ways to exit a profitable trade…
You don’t have to put this in the thread. I’ve only been trading for a week, so my word doesn’t carry any weight. I’m still learning. I guess I could have said that in my first post.
Wigglez, I designed the Simple 7 for beginners, I got so very tired of hearing how they were trading against the overall trend and loseing pips. This strategy will set you in a winning trade by far most of the time. If I have to get more specific on how to manage the trades to help you be profitable, I guess I will do that then, and be happy to do it. It has been mentioned before how this thread has sat on the net for years with little attention, so let me fullfill it’s purpose now that a few people are paying attention to it. I am happy to spend a little time if people are trying to understand what I am saying. I really want you all to make steady pips every week. Family calls even now, see you at open… wiggles, open can have TERRIBLE wipsaws, be not too antious to open trades within the first hour of the Sunday open or within one hour of the Friday close…
66 pips counted on this account, 52 pips on a AUD/NZD trade on another account and 13 pips using my cellphone account on the EUR/USD. The first trade was a test trade, nothing to do with any strategy and lost 18 pips.
This last week was a great example for me when the E/U decided it had had enough of selling and was convergent awhile and even had the buyers moving the market upwards some. Because I work on the 15m charts, my risk of loss was my standard 20 pip stop loss even if a serious market reversal was apearing.
I also entered a AUD/NZD trade and had no reason to exit it until the end of the week so I made about 52 pips on it alone.(About a two day trade.)
Just in case you want to know, this last week was another profitable week, using the Simple 7 strategy as part of my trading. Very busy weekend, will not be able to tradethe open today (Sunday). My account is up 78% Since 5-7-2012
Im going to try this out right now and report back, looks very promising but i feel it may be a bit to good to be true in the long term. Appreciate you posting this though mate
Please take note of my approach to Simple 7, I am not focused on long term positions. I prefer using the 15m charts, some of those trades can last awhile but I am not a fan of overnight positions. Try using 5m or 15m charts using a 20-30 pip stop loss and locking in 10 pips after you get 15 or 20 pips profit. Then see how far the trade can go… something like that.
akatom2u thank you for sharing your trading strategy. I started using this method today with the opening of the London session. I made +11pips in GBP/USD. I sold 1.5572 and took profit at 1.5561. Ill continue using this strategy and report back.
Awsome news otasos! Please read the thread and study what I have been saying. When you believe you are opening trades at the correct time, you can talk to me and I can help you with other aspects of trading if you like. Many many pips to you and others that try my strategy… Be blessed.
7 and 50 on 5min are basically half an hour and four hour. So why not go with 6 and 48 (exactly 30min and 240min) ? Is there a quirk with 7/50 that makes them work better? Also do you have a favourite currency pair for this? Cross/non cross? Have been looking for a 5min scalping strategy so will give it a go. thanks
I was working on a method based on the 7 ema for scalping and developed a more robust method better suited for entries. Perhaps Simple 7 would be better suited for the 6 and 48 ema… I will look into it. Thanks for the heads up, I used simmilar appraoches before for finding coorelation among timeframes. As for the name, Simple 6 would be fine also!
Hello! Im quite new on fx trading and I haven’t found any real favourite strategy yet. At the moment I’m trying out a strategy involving only RSI and the stochastic. It seems to work pretty good, but I’m curious testing the Simple 7 as well I’ve read all the posts in this tread but then my goldfish-memory striked again Can’t someone just summarise where to take profits, set stop losses, what time frame to use, and so on?
It would help a lot to have it all on the same place!
// Lidasjr
Edit: I also wonder which currency pairs are most suitable for this strategy?
in GBP/USD. I sold 1.5572 and took profit at 1.5561. Ill continue using this strategy and report back.
I’ve read all the posts in this tread but then my goldfish-memory striked again