My Simple Trading System

February 27, 2007 at 5:12 am | Posted in Forex | 18 Comments

adbanner.jpg

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

chart11.JPG

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 :

  1. 5 EMA must cross above the 10 EMA (indicated on the chart by the black candle).
  2. RSI must be greater than 50.
  3. Stochastics must be headed up and not in overbought territory.
  4. 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 :

chart2.JPG

Short Trade Rules :

  1. 5 EMA must cross below the 10 EMA (indicated on the chart by purple candle)
  2. RSI must be less than 50.
  3. Stochastics must be headed down and not in oversold territory.
  4. 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 :

chart3.JPG

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 )

18 Comments »

RSS feed for comments on this post. TrackBack URI

  1. “3 Metode Sederhana Mendapatkan Profit Secara Konsisten Melalui Bisnis Online Forex Trading!” Ditengah-tengah keterpurukan ekonomi saat ini, Bisnis Forex merupakan salah satu bisnis yang sangat-sangat menjanjikan, hanya jika Anda tahu caranya….Hanya dengan 3 Langkah Sederhana, maka anda bisa menghasilkan keuntungan yang terus bertumbuh di Pasar Forex. Informasi : Klik Dewi

  2. 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

  3. Hello All,

    I was reading around some of the posts here and I found interesting things that you guys talk about, I just made a blog about quitting smoking resources and ideas that you might want to check out.
    If someone is interested in this topic just go to; http://endthehabitnow.blogspot.com and let me know what you think.
    Thanks in advance.

  4. 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

  5. Follow these guidelines and you will build that new home with little, or no, problems. denver kitchen remodeling can help…

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

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

  8. news info
    http://www.duniamaya08.blogspot.com/

  9. 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)

  10. terdapat pelbagai seminar buat duit di internet pada masa kini

  11. sebuah metode trading forex yg menarik.
    kalender forex di seputarforex

  12. great tutorial.
    keep posting brow

  13. Percuma forex system di blog saya

  14. more thanks
    for all this informations

  15. Thanks for your updates. I really be grateful for your work to this site. I hope you can continue this kind of good quality work in future also.
    Forex Trading

  16. cuma nk kongsi….tiap2 bulan aku dok dpt rm3000 lebih gerenti, syok betul la ni. robot yg aku guna mmg power betul. xpayah nk susah2 trade. cukup bulan keluar duit enjoy. robot ni direka supaya tak margin call, bleh hidup walau apa keadaan graf sekalipun. try dl br tau. call aku klu nk join, aku nk tolong sama2 cari duit, aku pun mcm korang gak dl susah
    yus: 0196418353

  17. Thanks for another informative blog. The place else may just I am
    getting that type of info written in such an ideal means?
    I’ve a mission that I’m simply now running on,
    and I have been on the glance out for such information.

  18. I believe what you published was actually very logical.
    But, consider this, suppose you were to write a awesome post title?
    I am not suggesting your content is not
    good, however what if you added a post title to maybe grab folk’s attention? I mean My Simple Trading System | Belajar Forex & Online Business is kinda boring. You might look at Yahoo’s front page and see how
    they create news titles to grab viewers interested. You might add a
    related video or a related pic or two to grab readers interested about everything’ve written. Just my opinion, it might make your blog a little bit more interesting.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.
Entries and comments feeds.

%d bloggers like this: