The Koala System ( Newbie Friendly )

Trading Systems Free Forex Trading Systems
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Hi all, find below the latest The Koala System Weekly Review from my blog posted here for your convenience!

Good day forex trading koalas.

Welcome to another review of The Koala System for forex.

In the last review we observed trend like conditions that allowed the system to harvest up to 6 standard opportunities. The 200 EMA proved to be useful again as it gave warning of potential support and resistance areas.

Looking at the EUR/USD 15 minutes chart above for last week, we see 6 opportunities presented.

Did you notice a difference?

Yes. This review is based on the experimental take profit value of 30pips. After testing for a few weeks, i will like to touch a little on this. The idea of a 30 pips take profit came from my observations and also from users who commented to me that the current market situation is often tight and 50 pips may be risky at times due to the possibility of the currency pair turning direction before reaching.

Using the 30 pips take profit value, the rate of successful opportunities presenting themselves is probably higher. The red zones nonetheless remains so due to conditions violating The Koala System rules entirely.

Having said so with a 30 pips take profit, we need to have at most a 30 pips stop loss to maintain at least a ratio of 1:1 for the win lose ratio. With a tighter stop loss, we cannot afford to be too inaccurate in our entries. This is why proper planning of your trades and proper money management is important.

This week the 200 EMA served us well again, serving as a support and resistance often. Let me know if you have opinions. Remember we are learning forex together :slight_smile:

Trade Safely.

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My pending sell stop expired a couple hours ago!!
Missed the speedy boat ride downwards…sigh…

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and that upwards moments ago is crazy lol

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Hello Everyone:

As a brand new trader I find your Koala System interesting. I don’t know a moving average from a hole in the grass, so please let me know if I have this correct.

Use 3 “Simple Moving Average” indicators.

For “Periods” of 3, 6, and 9. Periods equate to fully formed candlesticks.

I use FXCM as a broker and their charting software is “Marketscope 2.0”.

I don’t see a selector for making the lines “Bold & Smooth”.

We enter a trade when the 3 lines become parallel to each other. By “slight diverge” you mean that the lines are seperated from each other by a visible space?

The trade is in the direction of the MA’s.

The initial Stop Loss (SL) is set to 50.

When the trade goes to +25 Pips, you set the SL to +5 Pips.

Your “Take Profit” (TP) is also set to 50, but you will let it run if no “Major Resistance” is near.

You determine “Support / Resistance” how?

Please be very simple in your explanations or it will go right over my head. LOL

You are doing a great job, thanks

Syne

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Hi Syne, nice of you to join us here… most of the time it is just me and fxster lol a few others drop by from time to time… WE ARE LONELY :stuck_out_tongue:

my indicators are based on MT4… what options do you have for moving average?

I usually write about the S/R over at my blog. I do my daily E/U reviews there. However folks who know me will know i prefer to teach how to fish than to fish for one. Hence you can read an article i wrote about how i identifiy support and resistance lines .

Hope it helps. Feel free to drop by often. Will do my best to assist.

455

Hello Guys:

Only two Koala left to play, eh? LOL I’ll be the third.

Thanks for answering my post, I’ll try to explain what I have been up to
since I first started trading last month.

I funded my account with 300 USD, I have been using Daily FX+ signals to

make my trades.

Had some winners and losers, and then went out on my own and traded by

the seat of my pants, pretty soon I turned my $300 into $179.

Went back to using the signals and turned things around, over the month

saw a high of $1400 in my account.

I thought that I was doing pretty good up until yesterday, I was

convinced that EUR/CAD was the trade to take because I figured that once

the BoC announced it’s interest rate hike the CAD would soar.

So took positions in USD/CAD and EUR/CAD, bet the farm on these trades

because I “knew” that I would profit greatly from them. I “bet” about

40% of my account on these trades.

Set stop losses at 150 pips away and went to bed. Got up just before the

rate increases were announced and watched.

The trades took off in the wrong direction as I watched hopelessly and

in awe of what happened. I got burned very badly because I left the

trades open until my account shrunk to below $800.

Lesson learned: Appears that the rate cut was fully expected by the

market and already reflected in the price of the pairs. Traders were

disappointed when the BoC didn’t seem to leave the door open to future

rake hikes and were rather conservative in their remarks about that.

From now on I’ll be out of the market just prior to an important event

announcement being made and waiting to see what the market makes of the

event before getting in seems the wise decision.

Oh, compounded my losses by jumping in to other trades and lost even

more money. Tried to use the Koala theory on several currency pairs,

first two were successful and the last on took back what I had made on

the first two.

Last night, being of “unsound” mind, I bought USD/JPY thinking that the

Japanese Prime Minister’s resignation would once again bring riches to

my account.

Well this trade is working well for me, up about 144 pips. I set my stop

loss (SL) at 50 pips, and will keep adjusting it. I have a US account

and it seems pretty restrictive, doesn’t allow the setting of “limit”

and “SL” orders on an entry order, and appears to not allow "trailing

stops" to be set either, so I will be transfering to a UK account soon

where things are less restrictive.

Statistically speaking I have done very well, my account is back over

$900. But I am sure I will lose everything if I keep trading the way I

am without a plan and “shooting from the hip”.

I am now looking for a system that will get me in and out of the market

and not expose me to too much risk. End of story for now, thanks for

listening and any suggestions will be greatly appreciated.

I am still not sure on how to identify an entry into a position using

your system.

Right now at 1415 hours USD/CAD seems to be signalling a “Buy” for the

USD/CAD pair, I am hesistant to get in though because it appears that I

will be coming to the “party” a little late. (15 minute chart)

The “Moving Average” indicators in my package are: MVA, EMA, KAMA, LWMA,
PPMA and TMA.

Syne

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Hello Guys:

Here is a snapshot of USD/JPY chart picture, snapshot taken on 02 Jun 2010, at 1457 PDT local.

This I assume is a valid buy signal, everything looks nicely lined up and are above the 200 MAV, indicating it is in an uptrend.

Just to see how this turns out I will buy @ 92.144 SL @ 91.890, I will track it and post the results here.

Syne

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The attachment didn’t show up so here is a link to it.

Remember I need you feedback

Thanks,

Syne

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Someone changed the link address and it is not the correct one for the file.

Here is the correct link, I hope: mediafire.com/i/?v2mem1nk2wr

Syne

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Hi syne,

Can i suggest alpari UK to u? It uses MT4 platform, and the spread is relatively cheap.
I have no idea how ibfx platform looks like.

have u tried EURUSD? Me and trading801 is trading EURUSD.
I’ve been trading about a year, had a huge losses as well, as still slowly recovering until now. The problem was my erlier trading size was $1-$10 per pip, and made huge losses.
Now im recovering with $0.1 to $0.5 per pip. It will take long time, but my intention here is tolearn and as a hobby, not tomake money YET.

EURUSD is considered a beginner pair, low spread and slow and steady pair.

In addition, my frank opinion, the koala system is secondary to me. In fact, trading801’s S&R line is my priority. It work like magic. I loves it when his chart works!!! hmm… where i heard that before??

Koala system is just to reinforce u to trade in line with the trend. dun go againstit.

No offence, just my 2 cents (and it rhymes…)

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Mayb one day when EUR starts to loss steam (and spread will increase), i will move to the next pair with smallest spread.

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Hello Fsxter:

Pleased to meet you, I’ve been getting a pretty good education since I started trading last month. I’m happy to see that you are doing well now and you have a good attitude.

I stayed away from the EUR/USD pair the past couple of days, if I had known what I was doing it would have been a great opportunity to make quite a few pips.

The Japanese at the present time have a lot of problems to overcome which may effect the value of their Yen. The Prime Minister resigning was a pretty big shock and was unexpected, North Korea raising the war talk to a higher pitch and deflation pressures in the Japanese economy.

My ideas are to combine Fundamental and Technical trading and try to make the best of both work for me. So far the USD is rising nicely against the JPY for me. I needed some encouragement after yesterday’s blunder on the CAD trades.

So far I see the Koala’s signaling a buy or sell pretty late, so I’m not sure if it is useful. It’s given several signals but they are very short term, and they come late.

If you or Mr. Koala have any ideas I am always ready to listen and discuss them. I’m retired so I am at my computer most of the day.

Talk to you later,

Syne

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Doing well??
i would say i’m still learning…
Just made 50pips loss couple of hours earlier.
But i must disclaim, it wasn’t Koala fault.
I still believe that EU will drop, so i made a sell limit at 200EMA. But instead the pair went all the way up. this shows that fundamental doesn’t really help.
U won’t know whether the fundamental effect will come in short term or long term.
But i won’t ignore funmental at all. It’s still good to know.

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heehee FXsTER I LOVE IT WHEN MY CHART WORKS eh? did u see my review yesterday? new tagline I LOVE IT WHEN MY TRENDLINE works lol

the E/U is still testing the H4. as i mentioned, i am concerned that the lowering ceiling may squeeze the price as it seems to be not making lower lows for now… and we all know what happens when something is squeezed too much…

anyway syne i envy u ! able to trade all day… fundies are not good for short term trading… if u r on fundies, be expected to hold trades for weeks / months…

at least now u know what you are doing wrong… yes the rate hike from BOC was already considered done deal by most of the traders

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Hello Guys:

Hope you both are reaping the benefits of being a FOREX trader and making steady progress.

Did well on the USD/JPY pair, held my position overnight and moved my SL to within 25 pips until I was eventually stopped out.

Guess the next important fundy issue coming up is the US non-farm payroll, should be interesting to see how the USD does against the EUR.

The EUR/USD pair has been rather quiet today probably in anticipation of the non-farm payroll figures being released. Hope to make a few pips on this one.

Been looking at the “Cowabunga” system and it seems similar to Koala in that it uses moving averages but also adds MACD, Stochastics and RSI to the mix.
It’s not very complicated but waiting for all the indicators to line up is time consuming.

I’m not very adept at reading the chart and figuring an entry point, just need more practice and patience I suppose but I don’t like looking at a chart waiting for it to signal something, tends to be very boring for me.

Good luck on your trading,

Syne

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Still red so far from Wednesday loss. Looks like it will be my one and only trade for this week.

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Hello Fxster:

Losses have a way of changing your outlook on trading, especially if a stop loss gets you out of a trade a couple of pips before the trade turns in your direction and makes a big gain. Happened to me last night on the EUR/USD.

I was expecting the EUR/USD pair to decline prior to the announcement of the “non-farm payroll” numbers. Well it did just that but not before taking out my SL and giving me a 50 pip loss. Grrrrr hate it when that happens. LOL

So I re-entered the traded thinking that I was right on the direction of the EUR and wrong on it’s execution.

So far have a 20 pip gain which makes me feel a little better.

Hope that you are able to make a nice come back Fxster, score a boatload of
pips. Help make your weekend a happy one. :slight_smile:

Talk to you later, keep pipping!

Syne

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In an effort to find an even simpler solution to the Koala System, I propose the following.

A little background first. No matter how complex a system is, even with a gazillion indicators, it all boils down to trying to enter a winning trade.

Having a system, any system at all helps you to be consistent and by doing the same thing each time should give you an edge. I think that 1 out of 3 or 4 profitable trades is possible with this “system”.

Use the 4 hour chart and identify the trend, either up or down, the currency pair with the most pronounced trend will be the one that is selected for a trade. I would suggest keeping the list of currency pairs short at no more than four.

If the trend is negative: Short.
If the trend is Positive: Long.

Set SL @ plus or minus 25 pips of entry. (Or whatever you like but give it some room so that you are not whip sawed). Adjust the SL to maintain the 25 pip mark as the position goes in your favor, never adjust it to keep you in the trade longer on a losing position.

Hold the position until you are stopped out.

I am testing it in my live account on the EUR/USD, I’m in a winning trade now and have adjusted my SL as above, so that I am in a no risk trade.

Can’t get much simpler than that.

Syne

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I just entered a trade:

USD/JPY sold @ 91.612 SL 91900

The Japanese house selected a new Prime Minister last night and the JPY is in a strong uptrend.

This appears to be an ideal trade based on the criteria I outlined in my previous post.

Adjusted my EUR/USD SL to maintain 25 pips.

Hope you guys are able to get some good trades.

Syne

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Hi syne,

Thanks for the system, but when do you enter the trade?

For e.g. EU has been on a down trend for weeks or more than few months on a 4H chart.
When shd i enter sell?