Forex trading strategy #17 (Teodosi simple system)
Submitted by Edward Revy on September 20, 2007 - 04:59.
This Forex system was sent us by Teodosi.
We are proud to have such users willing to share their thoughts,
ideas and systems so that others can learn and trade Forex even more successfully!
Thank you, Teodosi! Your contribution is greatly appreciated!
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"Hello guys i`ve been using one very profitable system and i want to share
it with all of you. If anyone has any suggestion i`m open to hear something
new to add in it.
This is my system.
I use 1h chart on GBP/JPY with Stoch(5,3,3) and RSI(7). My idea is this ...
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GBPJPY my love
GBPJPY is a great currency pair.
i strongly advise beginners to stay clear from this
pair cos of his high volatility and low liquidity
which is most times as a result of carry trades advantage.
Any way for the advance traders, with very sound money management rules, can do greatly.
making $50,000 from this pair is realistic.
shalom!!!!
from ken, Nigeria
Hi Ken,
I am beginner so could you explain me what does it mean
GBP/JPY has high volatility and low liquidity?
Regards ,
Darius
Let me answer this.
High volatility means that the currency is shifting up and down a lot, providing more opportunities to trade and benefit from the moves. On the other hand, high volatility also means that one should be careful about placing stops and controlling losses overall, because price shifts are quite wide, which carries high risks of resulting in large losses if not treated properly.
Currencies with high liquidity in Forex are those that are popular and traded widely among traders. Low liquidity pairs are ones that traded less actively, are less popular, here belong all exotic (uncommon) pairs.
THANK YOU MR. TEODOSI FOR THIS GREAT STRATEGY. PLEASE I WANT TO KNOW WHETHER THIS CAN ALSO BE APPLIED TO OTHER CURRENCY PAIRS.
Hi Mr. Edward/Mr. Teodosi
Please receive My appology for not making my earlier request very formal.
I'm Chris from Nigeria. I want to know whether this same strategy can also be used for other currency pairs. If yes will the stop loss be the same value.
Thanks. CHRIS.
Hi Chris,
It certainly can be used for other currency pairs, however, while trading with other pairs, you will be often looking at smaller price shifts comparing to GBP/JPY, which will ultimately mean less pips per trade and possibly more break even trades.
Other than that, everything should be fine.
For stops you may pick smaller gaps - around 50-60 pips.
Regards,
Edward
Hi Edward, what about this system for gpb/usd? I doing some tests and its working quite well, I´d like to know your opinion.
Congratulations and thank you again for this great web.
Juan
Hi Juan,
This system should perform same well with GBP/USD pair.
One of the main reason why Teodosi suggests GBP/JPY is probably because this pair has wider daily range and therefore trading profits are expected to be larger.
Regards,
Edward
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