Forex trading strategy #1-a (SFT Simple Strategy)

hey this is not fair,you did not give EA of this system?

ADR is in the .rar file . Add it to your MT4 indicators .
Regarding ADR : We have been changing settings of max/min ADR allowed for execution ot the signal. Due to the lack of Volume is ADR far under long term average.
For now the minimum ADR to accept the signal is (on my side) :
EURUSD : 80
GBPUSD : 75
USDCHF : 60

Regarding the stats of the performance of this system . I use it on very conservative side with cca 0.7 % per month return over the past year . But thats because i am very risk averse and this is not the only strategy traded in the basket .
For the strategy evaluation in FX i use mainly MSA (Market System Analyzer ). I have been used to excel , but past years i went with the MSA . Still using excel for some tho.

Some info:
Volume has been slow in past months .Low volume usually get hand in hand with unexpected volatility off the NEWS times . I expect raise of the volume in upcoming months , so i suggest to watch ADR levels ,if you trade the strategy manually and possibly adjust your rules to the ADR/Volume.
This strategy is looking for major hits. So expect lots of small losers to be covered by major homeruns . We trade only three pairs and it was enough . There is no need to go with exotics from my point of view, due to larger spread and lower liquidity or simply for not knowing the pair well enough . Majors are cheaper , liquid and most informed on.
It is simple strategy, which will work only if you follow the rules . Its not a magic , so dont expect to get rich overnight :o)

I wish everyone successful trading !

Radim

Hey everyone,

sorry for delays in replying to your comments . The strategy is still alive and running . I will try to get here later on and answer your questions . We are traders running our own fund and i am lacking time to get online and give some knowledge or other info regarding the system to all .

Best,

R.

hi

i want to test this strategy on my demo account...unfortunately the broker doesn't offer ADR...is there a another indicator, which shows the same as ADR?

hi. can u guild me install the said indicator, because after i intsall in MT4,,nothing apprear. Thank you

Hi R
I find your contribution very useful for me as a forex-beginner. I would like to ask, if you would kindly share the format of your trading log and excel/statistical software for the evaluation. Thanks for your support.
regards, P6

Hi R

so glad I found this site. Your sharing is really terrific, which I appreciate. I have just started with a demo account. Will practice what you have shared. Will share my experience later on. Bye for now.

regards
p6

Hi R

Once again thanks for your response. That certainly clears things up a lot. It makes a lot more sense now, thanks a lot. By the way I would never place a 100 pip stop loss, and if I did i would trade very small position sizes. My goal is never to risk more than 2% at any time.
Thanks for the advice, I have a good broker who has allowed me to have a live account open with a zero balance. For starters I have deposited $100 and will start trading micro lots (10 c per pip) from next week. I know I wont get rich that way, but it gives me the ability to trade real money while learning at the same time. I'll only increase the amount once I'm confident that I have the right mindset to apply the strategy with discipline.

Once again, thanks for the free information. I'm going to read your document one more time to get a better understanding. I like that last comment of yours. ("Trade it as your hobby, but be serious about it like it is yyour business.") That will be my motto from now on.

Regards

P

to P.

I am not sure you do understand well enough how this strategy is managed . Read money management rules to make sure you know every detail of it. My RRR is cca 1.5 and Stop Loss is never 100 pips. You are using 5 decimal quoting Broker and ADR for that reason showing one more 0 on the chart !!!!( This indicator has been coded long time ago in times of 4 decimal brokers only ) . Your SL should be 10% of ADR - average ADR for EURUSD for example is 160 lately ,so your SL should be 16 pips based on the % of ADR !! (Sometimes plus spread- depends on your statistics of the past). Let me just tell you this . Dont get too excited about trading and dont try to jump in to real money account too fast . This strategy proved to be profitable, but can stay in losing period as well for some time. It is mentaly very hard to stay disciplined through the losing periods of any strategy ! Trade as it is your hobby, but be serious about it like it is your business .

I wish you the best !

R.

Thanks for the answers R, that explains a lot.
I have been using your strategy with some success on my demo for about a month, not yet ready to go live, but when I do, this is the one I will use. After demo trading for about 4 months your strategy is the only one that gave me consistent profits, so thank you once again.

One more question:
You place a fairly big stop loss (average 100 pips), yet you only stay in a trade for about 10 minutes,
So how do you manage to make your profits? The way I have used your strategy is that I place the stop loss above/below the most recent high/low, and usually wait for the crossing of the ema's to coincide with the bounce off one of the daily pivot points. However, I normally get out at about 8 or so pips (still to scared to ride the profits in case it goes against me).
On average, how many pips profit do you take per trade?

To P.

In a way it is a scalping method of trading . At this point i have set max of 6 losers per day . 3 in a EU market and 3 at US market . I am staying in position from few seconds up to 1 Hour the most. 10 minutes on Average . If the day goes well You can have even 20 positions and more filled . But most of the days i am ending up with Break Even now. Thats how market is at this moment and i am adapting to it . Runnig BE now , some loosing weeks as well..and then they are weeks and months with great profitability . Most important thing about any well tested strategy of Your own is to keep up .If You trust such strategy and it proved to be profitable in a past and You understand exactly how it works , than over longer period of time You cannot lose . The patience is the key i am sure !

R.

Hi
Thanks for sharing your system.
Is this a scalping stratey? Based on the low time frame it seems like it is.

Approximately how long do you stay in one trade, and how many trades per day do you make?

Regards

P

i will have a look at it . edward your site is the bomb i said it i think now 4 times but still god bless you and your family

Hi everyone ,

Did anyone tried to trade this setup at January ? Let us all know how did You do . As i said before, i will let Yu see me trading LIVE online as soon i have more time to do so .
Hope You Guys doing well !

R.

Hi ROD,

After the MA cross we are waiting for next BAR or Candle to open. Position is executed as market odred upon new bar opening . Stoch and RSi have to be TRUE as well to execute order !

R.

PS: If i have got enough time, i will show this strategy in LIVE trading session online one of the days ,so everyone understand the rules ,entry and exit points and my trading approach to it. I will let know in here soon.