After faffing about for 6 or so weeks trying every combination of indicators and spending countless hours online researching every system that has been devised by mankind for trading Forex I have seen the light.
For the last day or so I have formulated a plan of action.
My cunning plan is this:
Tools:
Fibonacci, Pivot Points and Candlestick Entry Signals plus an EMA indicator and not forgetting Support and Resistance plotting.
Method:
Use Daily and 4hr Chart to see trend and plot S&R levels
Trade on 15min chart ensuring I trade with the trend. Try and spot a good entry point using a combo of S&R and Pivot Points with a dash of Fibonacci just in case. Candlesticks for confirmation.
I will not trade until I have confirmed that at least 3 of the indicators give positive signals.
Set my stop loss just below a previous level of Support or Resistance and try and take a profit (if any) at least 2:1.
I will stick to said plan for 50 demo trades and take notes for each and everyone of them. If I see something blindingly wrong with the plan before the end of the 50 trades I will modify strategy. But I will not tinker or modify just for the sake of it. I intend to let the system run its course.
I am also aware that my strategy isn’t earth shattering or that inventive. I look on it as all part of my education.
That’s why I will only use demo mode so I can see all faults and silly mistakes with this method. I am hoping it throws up all sorts of issues. Hopefully I will learn from these mistakes.
Hmm … Gazzer mind sharing how do you test your system?
And do you keep a journal on the result of the each step taken in the test?
What are the things or elements that you keep track of while trading with your trading systems?
date: time: buy or sell: currency pair: price: take profit: stop loss:
Then I add notes… What signals I acted on. Then I just try and see what actually happened against what I hoped would of happened. I try and see if I misread the signals or was it just the market being the market.
All I am hoping for is consistency.
But I must admit I am finding it hard to stick to the plan. The hardest bit is not trading. I had a scatter gun approach where I would trade as much as I could using any method but mainly guesswork being honest. I work full-time so sticking to a strategy am finding hardly and trades which do match my rulings.
So far using my strategy I am not in profit. But the biggest flaw in my strategy is me
Save the time of using a spreadsheet and use a forex testing system. The V hands system is free to download on metatrader 4, and there are also a few commercial systems if you want to spend some cash.
