I want to share my system that is VERY profitable when used correctly. I am a trader of 10 years and I find the most common reason traders fail is:
- Poor Money Management
- Counter Trend Trading
For this reason, I have developed a system. First of all, the risk shall be 1 to 2 reward. Typically I keep my grid bars on the chart and my risk becomes 2 grid bars from my entry and my reward is 4 grid bars from my entry. As far as entry is concerned, if you see a currency pair in a strong bullish trend you buy and if it is dropping off a cliff you would sell. Normally, in a newbies mind they think they can catch the bottom of a trend and THAT DOES NOT WORK. So instead of trying to catch a bottom by buying, you would sell where you think the bottom is. Yes, its backwards thinking but it works very well. One work of caution is trade this during the London session!! You should not be trading this near the close, as that is often when trades reverse!!! Its best to enter trades between 4 am and 10 AM EST. If you have questions let me know. I have enclosed a chart with an example. You can only be right 1/3 of the time and breakeven. Good Luck!
Note: I do not recommend trading this under the 15 minute time frame!! Your spread will kill you if your targets are only 15 or 20 pips so PLEASE use 15m and above ONLY. I generally use 15,30,60.