FREE FOREX STRATEGIES

Advanced system #13 (The Floor Trader System)


Yesterday I've got another great feedback from one of our readers - Rahul.
He writes:

Hello Edward,

I think you are a very noble person because you are doing great work here helping newbies and also dispelling the popular myths about trading to show ppl the reality. I think you have a very good heart. Thank you for helping all our brothers and sisters out there in the forex world.

I have found a strategy which is the real thing .... it has been used by a contemporary of Denis Richard and used by many professional traders who have made millions from it.


Read entire post >>>


 


Hi everyone,

As stated in a previous post, I have also been watching the USD/CAD, and this morning a setup presented itself.

Any comments?

Orders have been placed :)

Happy Trading

Michael

Hi Tom,

Knowing where price is going to go next is not only the Holy Grail of trading, it is also impossible!!

As traders all we can do is look for a setup that has an edge (high probability), and continually keep trading it.

With good money management (and a little patience) we can be prfitable.

Happy trading
Michael

hi Michael,

re the chart not knowing time frames etc; I suspect there is a good reason this is called the Floor trader strategy namely because thats where it originated and I suspect it was not meant to work in longer time frames; subject to that how are you finding it with your most recent trades ? re finding the trend; I agree in FX this is the hardest thing to do; how do you normally find the trend ? the same method should work; failing that just put up the 9 & 18 on a higher time frame; I have been experimenting with that on everything from the 30 min to the 4 hr; what I am finding that if the 30 min trend lines up with the 4hr candle formation then its pretty good at ID the trend. tom/oz

Hi,

Both trades active, so we will wait and see what the day/week will bring.

Happy Trading

Michael

Hi again,

Spotted another trade.

USDCHF Nov 15

What you think?

I plan to trade these 2 setups, will keep everyone upto date.

I also spotted possible setups on the EUR/GBP (but is sitting on strong support and is a 3rd retracement to the MAs), also keeping an eye on the USD/CAD.

Happy Trading

Michael

Hi everyone,

I have had a look at some charts, and saw this setup.

EURUSD, November 15

Let me know what you think.

Happy Trading
Michael

Hi Kristoffer,

Your USD/CAD setup looks good. Same as mine, it was just unfortunate that it got stopped out. These things happen, but I think this is a good system.

I haven't been able to trade much this week, and I am currently not in the market. Will take a look at some charts this weekend and post them.

Happy Trading
Michael

Hi,

Here is my losing position in USDCAD, if I had used a target (1:1) it seems like it would have been a winning position, but I wasn't home until friday night, so I could not sell the position. On Sunday night I believed the pair would continue its move, but it went down.

USDCAD loss

Kristoffer

Hi Kristoffer,

I am not saying that there is a wrong way of trading this system or a right way.

If you havent made a loss with your interpretation (ie a close between 9EMA and 19EMA), great!! dont change a thing.

But remember every trading system will have a loser (the trick is to keep losses at to minimum).

I you like, post your USD/CAD trade, I will post mine, let's compare.

Happy trading
Michael

Hi Tom,

Surely price charts dont know what time period they are?

Price is the same, and a 5min chart looks the same as a daily chart (it just takes a little longer, LOL).

I think identifying a trend is very hard- I would be curious to find out how you do it?

Happy Trading,
Michael

Hi Michael,
obviously I have misinterpreted the system. I have not lost on trading this way, but I will start trading the system correct right away. The hardest part is the profit target, today I lost on my usdcad trade, not so much, but I really hate losing. I think I will incorporate 1:1 risk reward like you. Your charts looks great, and I am very grateful for your pictures and knowledge sharing. I hope this will be a profitable week.

Regards,
Kristoffer

hi all,

I think maybe the problems you are having is trading the system on a daily chart; rememeber it was originally used as an entry on a 5 minute in the new Up or Down trend; I think the key to this system is what and how you identify the trend ? once you have that locked away then the 5 minute chart is used for your entries and re-entries; it may be that you should work on what works for you in telling you the Trend and then go from there;

Good Luck,
Tom/ Oz PS Michael thanks for your response last week;

Hi Thomas,

Thanks for the update, and for restoring the uploading systems.

A picture is worth a million words.

Michael

Hi everyone,

Here is an chart showing my current GBP/USD trade.

Your comments would be appreciated.

Happy Trading
Michael

Hi Kristoffer,

From the initial strategy

"Buy signals, LEVEL 1:
After establishing the uptrend cycle, a decline retracement occurs then,
1) Prices trade lower to enter the zone between the 9 and 18 EMA
2) One or more price bars touch the 18EMA (or penetrate slightly below the MA line)
3) Once the 18EMA has been touched, watch prices for a rally that breaks above the high of the preceding price bar by 1 tick or more"

I think the confusion is around point 1- does it mean that the price needs to close in the zone between the 9EMA and 18EMA.

I dont know the answer... lets discuss a little more.

Happy Trading
Michael


 

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