shandybagusj
New Member
work in progress --
One system I've been trying lately. Ill try and get an explorer up
1. Look for 1 hour time frame or higher candle stick setups (I prefer 4 hour and higher). The best signals are 1/4 hour reversals of a correction of the daily/weekly trend (in other words, the continuation point of the daily/weekly trend after its correction)
2. If price looks ready to reverse in an 00 or 50 zone, enter with a 60 pip stop. If this is the first trade, target can be whatever you want. 30 pips is usually good though, its very rare a 30 pip TP won't be hit if you are trading a 1 hour time frame or higher. Unless its a 4 hour or daily reversal (which skilled traders can spot easily), in which case you know the target is much higher than 30 pips, and you should plan accordingly for that. You will see where the 30 pips comes in in a moment.
3. Risk 1% of account initially. If price is approaching the 00 zone (remember your entry should have been in the low 50s for a long and high 40s for a short), and the price action and momentum appears to be bottoming out, enter again with a 60 pip stop loss, somewhere in the 03/08 zone for longs, and 93/98 zone for shorts). This time the entry size is double the last, so 2%.
IMPORTANT: If momentum does not appear to be bottoming/topping out and your stop is likely to be hit, do nothing. Let the stop get hit. Don't immediately re enter. Wait until you see support and CZs (consolidation zones) building. Often times this can save you another 20-30 pips, which means your next entry has 20-30 more pips of stop loss behind it, and also 20-30 more pips of profit.
4. For this to work you have to be good at picking tops and bottoms, which all the good traders are anyway. It worked for me easily in AUDUSD this week, as my first entry was at 8960. I bought some at 8905 with a stop under 8845. I also bought again at 8850 and 8860, without being stopped out on the 8905 (except for the 8960 was stopped out, but it was the smallest trade of them all) The beauty of this is a very good cost basis on your entry. You can take profit at BE and re enter a normal position size for the real chunk of the move (to reduce risk incase you are wrong).
If you are stopped out, when you double your entry, all you need to do is get 30 pips and you are at break even. Scratch the trade and if you think it has more room to go, re enter with the original size (in my aud case, the size I used at 8960), to reduce risk.
5. Best pair to trade? EURGBP
6. Risks would be 1%, 2%, 4%, 8%, 16%. At this point it makes sense to stop in my opinion, and accept the 31% draw down. So you get 5 trades in a row. You get a minimum of 300 pips if you just enter at every 50 pips interval, but all you are looking for is a 30 pip correction. But a smart trader will know when not to enter as well, and this can mean a move would have to go 400-600 pips before having a 30 pip correction. And lets call it a 40 pip correction because the trader likely wont catch the very highs and lows within a pip or two.
7. System can also be done with 20 pip stops and 10 pip TPs for recovery trade (to BE), for intraday scalpers.
8. Don't try and make an EA for this, it won't work unless it knows when to stay out of the market.
One system I've been trying lately. Ill try and get an explorer up
1. Look for 1 hour time frame or higher candle stick setups (I prefer 4 hour and higher). The best signals are 1/4 hour reversals of a correction of the daily/weekly trend (in other words, the continuation point of the daily/weekly trend after its correction)
2. If price looks ready to reverse in an 00 or 50 zone, enter with a 60 pip stop. If this is the first trade, target can be whatever you want. 30 pips is usually good though, its very rare a 30 pip TP won't be hit if you are trading a 1 hour time frame or higher. Unless its a 4 hour or daily reversal (which skilled traders can spot easily), in which case you know the target is much higher than 30 pips, and you should plan accordingly for that. You will see where the 30 pips comes in in a moment.
3. Risk 1% of account initially. If price is approaching the 00 zone (remember your entry should have been in the low 50s for a long and high 40s for a short), and the price action and momentum appears to be bottoming out, enter again with a 60 pip stop loss, somewhere in the 03/08 zone for longs, and 93/98 zone for shorts). This time the entry size is double the last, so 2%.
IMPORTANT: If momentum does not appear to be bottoming/topping out and your stop is likely to be hit, do nothing. Let the stop get hit. Don't immediately re enter. Wait until you see support and CZs (consolidation zones) building. Often times this can save you another 20-30 pips, which means your next entry has 20-30 more pips of stop loss behind it, and also 20-30 more pips of profit.
4. For this to work you have to be good at picking tops and bottoms, which all the good traders are anyway. It worked for me easily in AUDUSD this week, as my first entry was at 8960. I bought some at 8905 with a stop under 8845. I also bought again at 8850 and 8860, without being stopped out on the 8905 (except for the 8960 was stopped out, but it was the smallest trade of them all) The beauty of this is a very good cost basis on your entry. You can take profit at BE and re enter a normal position size for the real chunk of the move (to reduce risk incase you are wrong).
If you are stopped out, when you double your entry, all you need to do is get 30 pips and you are at break even. Scratch the trade and if you think it has more room to go, re enter with the original size (in my aud case, the size I used at 8960), to reduce risk.
5. Best pair to trade? EURGBP
6. Risks would be 1%, 2%, 4%, 8%, 16%. At this point it makes sense to stop in my opinion, and accept the 31% draw down. So you get 5 trades in a row. You get a minimum of 300 pips if you just enter at every 50 pips interval, but all you are looking for is a 30 pip correction. But a smart trader will know when not to enter as well, and this can mean a move would have to go 400-600 pips before having a 30 pip correction. And lets call it a 40 pip correction because the trader likely wont catch the very highs and lows within a pip or two.
7. System can also be done with 20 pip stops and 10 pip TPs for recovery trade (to BE), for intraday scalpers.
8. Don't try and make an EA for this, it won't work unless it knows when to stay out of the market.
