Hi everyone, a lot of people had asked me previously on what trading strategy I combined with the Galaxy Trades Forex Army System to get some pretty good and consistent profits, I figured I’ll share here on a simple strategy I use. It is meant to be VERY SIMPLE and VERY EFFECTIVE. Let’s not overcomplicate it. (:
It has a :
[ul]
[li]Risk to reward ratio : 1 to 1
[/li][li]Average holding time for trades : ranges from 1 to 8 hours
[/li][li]Average winning trade : 12 pips per trade
[/li][li]Average losing trade : 8.9 pips per trade
[/li][li]Winning percentage : 81.25%
[/li][li]Average monthly returns : Can range from 30% to 90% per month depending on your risk management
[/li][/ul]
I strictly stick to 3 indicators :
[ol]
[li]Dynamic Fibonacci Retracements
[/li][li]Bollinger Bands
[/li][li]Simple Moving Average (once in awhile)
[/li][/ol]
Very important rules :
[ol]
[li]I personally use a low leverage (1:50), as much as possible, I recommend others to use the same
[/li][li]Keep track of your trades, I have an excel journal which monitors the currency pairs I trade, the strategies I use and at which time I trade, from there, I constantly optimize my trading strategy (I have a version I created which I’ll upload here soon)
[/li][li]If you haven’t read up on basic trading psychology, I recommend you do as if you can’t master your emotions, having the best strategy in the world won’t get you profitable. I personally recommend Mindful Trading by Rande. I’ve read it and it’s really good.
[/li][li]Only risk 1% per trade. What does this mean? It means if you have a $5,000 account, 1% is $50. If your stop loss is hit, you should only lose $50 MAX.
[/li][/ol]
Platform I use :
[ul]
[li]I use the FxPM platform, I recommend others to try to find a dynamic fibonacci indicator for MT4 and as much as possible, not to use this platform unless you’re willing to spare USD$100+/month on it.
[/li][li]As a final confirmation step, I do combine it with the Galaxy Trades Forex Army system that forecasts trends and only when the 1-hour or 4-hour time frame shows a 75% bullish (if I’m going long) or 75% bearish (if I’m going short) forecast, do I enter the trade. I’m not here to promote the system so you can do some google searches to find it if necessary.
[/li][/ul]
Some good trades:
Well, FXDD has a nonsensical way of monitoring trades since I use their currenex platform and viking platforms to trade with FxPM (don’t worry! you can achieve the exact same thing with MT4), so here’s some proof of the trades from their trade journal, all of this is unaltered and taken straight from their platform, I only added in the +/- pips by the side for easier understanding :
Total +ve pips : 321
Total no. of winning trades : 26
Average winning trade : 12 pips / trade
Total -ve pips : 59
Total no. of losing trades : 6
Average losing trade : 9.8 pips / trade
Winning percentage : 26/32 = 81.25%
— So now let’s get down to business on how I use this strategy —
Step 1 :
Load a dynamic fibonacci indicator on your platform (A dynamic fibonacci indicator auto traces different retracement levels for you. There are a few out there which you can get your hands on, if not, you can always draw them yourself). Time frames to focus on : 1H, 4H. Use candlesticks.
Step 2 :
Load the standard bollinger bands into your chart, the parameters is (14, 2)
Step 3 :
Add a Simple Moving Average indicator (200) based on currency LOW, this is an optional measure but when our analysis is around this level, the success rate is almost 100%.
Step 4 :
Follow the steps below in the pictures, this is an example of a “short” trade.
Step 5 :
I personally strongly recommend to confirm the trade with the Galaxy Trades Forex Army as you’ll be able to see what hundreds of other traders are predicting at that exact moment on how bullish/bearish the trade is. If sentiment is 50/50, I would risk half of my initial amount (so if I was going to risk 1%, I would reduce to 0.5%), if sentiment is above 75% bullish (for long trades) or 75% bearish (for short trades) I would trade 1.5x my trade (so if I was going to risk 1%, I would increase to 1.5%).
Step 6 :
I would usually look at 4H chart to set TP level at next fibonacci retracement level and SL level at next fibonacci retracement level too. So in this short trade example, I would set SL at 1.3752 and TP and 1.3637. Usually the Galaxy Trades site would have some sort of average TP and SL level to be recommended, you can use that to confirm your TP/SL level too.
I will try to add in more examples over time (: For now, this is the strategy I use to bag mad pips every day. It can be traded on any currency pair at any time of the day. I hope this helps fellow traders get a lot more profitable like I have!
I’ll be glad to answer any questions, suggestions and criticisms of this system as I believe this is not necessary the best trading strategy out there. It is good, but it can be a lot better if everyone puts their minds together and work together to achieve this.
Cheers,
Desmond
Commander of the Galaxy Trades Forex Army
Hope you’ve been doing awesome buddy!
