My Simple Trading System « Belajar Forex & Online Business

My Simple Trading System

February 27, 2007 at 5:12 am | In Forex | 12 Comments

Hi,

I want to post my very simple trading system, for those of you who’s a beginner in Forex I strongly recommend you to follow and familiarize yourself with this simple system. The purpose of this system is to identify trend so that we can place trade following the trend. Your profit target in the beginning should not be set too high.. it is sufficient to set profit target at +10 pips.

First we need to identify the main trend, for this purpose we will use the 4 hour timeframe chart

The 4 hour chart settings as follow :

5 EMA applied to the close
10 EMA applied to the close
Stochastics (10 , 3 , 3)
RSI 9

Next chart we will use is the 15 mins timeframe chart, if the main trend in the 4 hr chart is going up we will look to trade long (buy) in the 15 mins chart, if the 4 hr chart is trending down we will be looking to open short position. This is the entry rules on the 15 mins chart after we have confirm our trend on the 4 hr chart :

Long Trade Rules :

5 EMA must cross above the 10 EMA (indicated on the chart by the black candle).
RSI must be greater than 50.
Stochastics must be headed up and not in overbought territory.
MACD histogram must go from negative to positive OR be negative and start to increase in value (we want to catch the trend early so the MACD histogram must be negative)

Refer this chart for long trade rules :

Short Trade Rules :

5 EMA must cross below the 10 EMA (indicated on the chart by purple candle)
RSI must be less than 50.
Stochastics must be headed down and not in oversold territory.
MACD histogram must go from positive to negative OR be positive and start to decrease in value (we want to catch the trend early so the MACD histogram must be positive)

Refer this chart for short trade rules :

15 minutes chart setup

5 EMA applied to the close
10 EMA applied to the close
RSI (9)
Stochastics (10 , 3 , 3)
MACD Histogram (12 , 26 , 9 )

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Comment by Dewi — March 22, 2007 #

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Hi !

I’m testing your simple system and seems to work nice.

However the 10 pips profit, aparently could be increased.
You don’t mention about the stop loss. What you advice for this purpose?

Any suggestions for more elaborated systems?

Regards,

Candido

Comment by Candido — June 25, 2007 #

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Comment by exsmoker — September 26, 2007 #

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if u want need information bout forex please visit : http://www.forexaccuracy.blogspot.com just follow my trade n u will be getting more pips.GBU

Comment by ronaldo — November 15, 2007 #

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Comment by Veniissuemy — November 19, 2007 #

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Your system works very well on many stock in EOD also.
Thanks for system.

Comment by Rattanpal — December 29, 2007 #

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hai……. nice blog…… msti dh pro tred ni……

Comment by along — June 2, 2008 #

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Comment by bstnlarifin — October 9, 2008 #

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Hi, good and simple trading system you have got. Forex trading should be simple like this. There’s no point making it complicated and can’t earn profits.

But one thing is that you set profit at 10 pips. Do you have a good risk to reward ratio? I know that this will push up the success rate, but it’s good to have a healthy risk to reward ratio for successful trading. Just a piece of my advice. I have a free trading system too, but take more profits, you can check out at my blog

Regards,
Dan (CEO of FTP)

Comment by Daniel Su | Forex Trading — March 18, 2009 #

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terdapat pelbagai seminar buat duit di internet pada masa kini

Comment by hazmanfadzil — April 21, 2009 #

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sebuah metode trading forex yg menarik.
kalender forex di seputarforex

Comment by seputarforex — July 2, 2009 #

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great tutorial.
keep posting brow

Comment by myfx — August 17, 2009 #

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