Forex trading strategy #14 (5x5 Simple system)

Hello Edward:
I have reviewed some strategies and I think these are great.
What are the best strategies of the whole website for range bond market?

Thanks in advance
Regards,
Javier

Hi Javier,
For trading in range bound markets traders often use Bollinger band based strategies and channel breakout methods.
On this website examples would be:
Bollinger bands based approach at
http://forex-strategies-revealed.com/gbp-jpy-scalping

Breakout system general idea at
http://forex-strategies-revealed.com/trading-strategy-trendlinetunnel

with the following strategies (their names often have word "breakout" in them) such as:
http://forex-strategies-revealed.com/simple-breakout-system

Regards,
Edward

Dear Edward and everybody of the team, first I would like to thank you for such a good help that you provide.
My name is Javier and I am dedicated all the time with FOREX market, right know I am not working and I am only operating in FOREX market, my goal is to live from trading the forex market and get an monthly income.

I know that this requires a lot of education, experience, good management risk between others.
Since I am in front of the computer like 10 hours per day, what strategies of your web do you recommend?
Do you recommend the use of several systems and strategies, please could you number these strategies?

Thanks in advance,
Regards,
Javier

Hi Javier,

If I had that much time every day to trade Forex I would certainly try or at least start with scalping techniques. Why?
First of all, because nothing brings profits quicker than scalping. Dedicated scalpers in one day are able to pull out profits that other traders can make only in a week or even month trading Forex.
Also the biggest advantages of scalping are controlled risks and small losses.
Try systems that we have in scalping section, for example, scalping system #4 and #6. They are good. However, I'm sure, if to set a goal, traders can make them even better and be able to execute what I call "heavy scalping" - when a scalper successfully operates lots of small trading orders practically non-stop.

If scalping isn't your preferred way of trading Forex, then you may try virtually any approach and system which requires working with charts under 1 day.
I'd focus on 1 hour and/or 5 min trading first.

Definitely, combining strategies helps trading better.
Take two, max 3 at the time.
For example:
advanced system #5
Simple system #16 and
Simple system #9 or #11 or #17

(First two have specific time requirements. Other can be traded any time of the day).

Let me also give you and everybody here general guidance (which I always use) on how to use strategies and improve them:

1. Find the strategy you like most, the one that works for you, the one that makes sense to you, the one you believe in. Let it be the base for your own trading system.

2. At first, trade it as is for some time, so that you are able to analyze its strength and weaknesses.

3. Let the strong side work and focus on the weak side(s).
Look for solutions (other strategies, ideas, approaches) that would eliminate or at least minimize unwanted performance.
It takes time to find all wanted solutions, but consistency and clear goals help to do it faster. (Compare it to constant switching from one system to another and unsystematic trying of numerous trading ideas, where each of them is good, but eventually nothing seems to be working...)

4. Explore, test, learn, improve till you create a trading system you could trust a million if you had one.

Good luck!

Regards,
Edward

Hi Edward, thank you for your useful advice!
Now, I like trading scalping, but I have a really important issue “Money Management".
For example usually every single day there are between 5 and 10 trades under scalping strategies, sometimes even more, I placed my stop loss order between -13 to - 10 pips and my targets are between 5 to 20 pips.
My question is in every trade what should I risk? 4 to 5 % per every single trade? less? more? for example if I have an account of USD5000 and there is a trade opportunity with Stop Order: -10 Take Profit Order: 12 Pips it could be a little bit more or less, should I place in this order USD200 as risk (4 to 5% of the account), it means that if I earn this trade I will earn between USD200 and USD250 and if I lose I will lose USD200
4 to 5% of the account). Am I too risky, or Am I right in this example?

Please tell us what the best money management style in scalping strategies is
An example would be enormous help.
Thanks again Edward, I will wait your useful advice.
Rgds,
Javier

Hi Javier,

Here is what I would do with $5000 account.
I'd risk $50 for the first month if I had a new strategy to prove itself.
I'd risk $100 for the first month if I had a well tested strategy.
If by the end of the month the results are positive, I'd add another $50 for the next month and so forth, and also make sure I stay within 5% account limit.

In case of two losing months in a row, risks should be cut and the scalping strategy reviewed.

Regards,
Edward

when you say 1 day do you mean the chart is a daily chart or that I should be trying this on a day basis

I mean the chart is a daily chart.

regards,
Edward