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This trading strategy is not a professional version, but has a lot of fans because of its simplicity and proven time-efficient.
At first acquaintance with the system in the first place I was struck by its simplicity and ease of analysis, the basic work schedule of the forex trading system is a 4-hour and daily charts. A key role in this system are two fairly well-known and popular indicator "stochastic" and «Bill Willam's Accelerator Oscillator».
Trading instrument: EUR / JPY
Time Range: Daily
The indicators used: Bill Willam's Accelerator Oscillator (AC), Stochastic Oscillator
Algorithm of tactics:
What to expect from this trading strategy?
This system brings 100 to 800 + pips, working on the daily charts.
Why on daily charts?
As you have guessed by the potential profit is not a 5-minute Scalping tactics, it seems to me that trading dolgoroschnyh timeframes easier than on short-term, as the rules of technical analysis on which triggered more often, and secondly, I have no desire to sit in front of a computer all day.
Of course, most of us aspire to, to devote myself entirely to trading, but that does not mean that you have to sit all day staring at a monitor. I'm much more interesting or paragliding golf. So I developed this system for long-term trading.
Does this fit the trader trading system you decide.
Let's look at the schedule, if you can find it on the correlation between the indicator and price action.
I'm sure you can easily find a short entry (300 + pips), and noticed that every time AC changes color and crosses the zero line, is given an entry signal. Really?
You see another short trade on the left side of the chart? She earned 835 pips for five days. Are you impressed?
I am sure that 90% of people are able to find in the chart above correlation. If you are the 10% who can not do that, perhaps, this system is not for you. You can stop reading this text and to look for another trading system.
The reason why I said earlier about it is that we have to trade on the forex trading strategy which is easy and intuitive. Technical analysis is not perfect. I think it's art, the art of finding signals. I can not find on the charts Flags, head-shoulders, triangles, so I do not use a graphical analysis of the price of their work in the market, and not wasting my time on something to improve in the art, which I understand is not given.
A bit of history.
I started working at Forex few years ago, because I like the volatility and leverage, I have never traded stocks, and do not plan to do so. The only stock that I owned, it was an action of an IT company where I worked.
Like most of you, I've tried many trading strategies, published on the forums, as well as buying commercial systems. I tried to trade on the news, scalping and astrology, but had no success. I lost a lot of time and money on systems that are not worth it.
However, I drew attention to several complex systems, in which there were many indicators, and which gave great scope for creativity. I've done a great job of examining the indicators, their settings and time ranges.
So the system.
The setup: open daily chart of EUR / JPY (the system also works on other charts).
Apply Bill Willam's Accelerator Oscillator (AC).
Impose a stochastic setting 5,3,3 on the AU.
Short Input: AC crossed the Red down 0 stochastics below 0.
Long Input: AC Green crossed upwards 0, the stochastic is above 0.
Yield: at the opposite long / short signal or by the rules of money management.
Money Management:
We sell 5 lots, stop loss at 100 pips from entry.
Profit on lot 1 to 50 pips, move the stop to breakeven.
Profit on lot 2 by 100 pips.
Profit on lot 3 by 150 pips.
Profit on Lot 4 of 200 pips.
Hold the position of Lot 5 to the moment that does not go the opposite entry signal.
Ratio of 1:1 reward to risk, although it largely depends on the 5 th lot. However, because we trade on daily charts, where the inputs are more reliable than intraday, the ratio of risk to profit is working well.
If you want to do back-testing, then pay attention to signals from late November - late December. The low volume at the end of the year creates wild swings simply.