FREE FOREX STRATEGIES

What type of trading system do you use in Forex more often?


scalping system
27% (2340 votes)
breakout system
16% (1414 votes)
news trading system
3% (302 votes)
price and patterns based system, no indicators
12% (1064 votes)
indicators based system
30% (2605 votes)
I trade without a system
10% (905 votes)
Total votes: 8630

I trade with no money back

There are no winners without losers. Trade with money which you can afford to lose without any damage.

When looking for an optimal exit point (manual exiting, not fixed amount of pips), try to answer the following question:
"When does the market reach its peak point?"
"What indicators can show/give hints about those peak points?"

with that approach, finding exits become easier. But you will be still leaving pips on the table, this time only when the market continues in your favor. But many times you'll be exiting at very good price.

I use a similiar system with weighted SMA 14 and SMA 20 on the one hour charts. Also use the 100 and 200 SMA for determining trends and pivots.Watching the daily and weekly 100 and 200 SMA on the charts for pivots also. thanks for sharing your system. My biggest issue is when to exit always leave pips on the table. Should of held on, anyone want to share theor exit strategy?

The best trade is without indicators! It's work!

i trade with emotions, i made a high profit in my first month in forex, i lost the whole account in one day, take my advice and never trade emotionaly or in a guiss play , just follow the indicators and mange your money, good luck every one

paulme33: if your making more money than your loosing, then your in the top 5% of Forex traders.. what % r u?

sma 50, sma 20 and a stop trailing(15pips).....

Beautiful post!

Thank so much, Phil!
I'm sure it'll guide many traders onto the right path and help those who had any doubts left.

Happy trading!
Edward

I use a combination of a couple of things that works well. Firstly, I've tried all the indicators under the sun over a two year "practice" period and I wasn't that happy with the results. Hey, they all lag behind price action. Now I trade simply with no indicators - just a candlestick chart. (When I want to practice now, I use my live account and trade with 1000 units so I only lose say $1. The dummy practice accounts are next to useless - they don't teach you about losing money).

I practiced again and again to recognise support/resistance (S/R), place those lines on my chart and trade breaks of those with a SL at the other side of the channel. However, as the potential profit is the same as the range difference, I was getting a risk/reward of around 1:1 or just less. So I learned about recognising candlesticks, looking for turnaround candles - those that suggest a move in the other direction.

So imagine - you've got a resistance at the top, a support at the bottom. Previously I traded the break at the top to go long. Now I'm looking at the bottom of the range for a candle that suggests it's going up and I will open a long trade on the close of that candle. (If you want to check indicators, perhaps a stochastic can help here a bit). That means my SL can be placed a minimal distance away - perhaps 7 to 15 pips, then watch the price rise to the top. I'll watch the candles again at the top - if it looks like it will come down again, I'll exit the trade. Normally I'll move the SL to breakeven +2 pips when in profit. Sometimes I will exit half my position at the resistance point and watch what happens. If it breaks through, then I add the range of the channel to the resistance to get my target.

By doing it this way, I've improved my risk reward from around 1:1 to around 1:2 or more sometimes. How can you do this? Just look at candle charts with no indicators and look for the supports and resistances. Draw them on - practice. Look up candlestick training on Google.

To help I also opened a dummy account with Alpari (I trade live with Oanda currently). As the Alpari platform is MQL4, I can add certain things to it. To help identify S/R I searched on Google and downloaded a Support Resistance indicator onto the platform. That helped me heaps in the beginning. I could copy lines onto Oanda at first until I could do them myself.

Most important part I found over the time I've been doing it - money mgt. Yes boring, but it saved me from myself. Now I have a spreadsheet that calculates it for me that I did myself. I enter my max risk (for me it's 3% per trade)and pot size - that gives me a figure to work with, eg a $10k account gives you a 3% risk of $300. Then I enter how many pips to a stop loss (I normally add a few just to be safe) - let's say 15 pips. Your $300 divided by the 15 pips = $20. This figure is how many $ per pip you can risk, i.e. if the trade goes against you, you will lose $20 x 15pips = $300 or the 3% of your account. Then I look at how many units I can buy that gives me $20 per pip. At the time of writing the aud/usd is quoted as being 9074 units to equal $1 per pip. Take the 9074 and multiply by 20 to get how many units I can buy = 181,480.

This money mgt has been the most important thing I've learned by far. Learn it first!

Quick note on Stop Losses - always use them no matter what. I read sometimes about people not using them sometimes. Yes you may do well for 999 times out of 1000, but then you lose big. And the causes are things you can't imagine - for example 9/11, an earthquake, China cancelling all trade with the USA - and heaps more wacky ideas I can't think of. But each will decimate your account, so use a SL everytime.

I suppose the above may be useful for newbies. Hope so anyway. I lost money big time early on because I didn't learn about money mgt, didn't know enough about breakouts, pivots, candlestick formations. It's taken just over 2 years of learning and studying to finally feel like I'm getting somewhere. Hey, it's like a forex diploma - you don't get a diploma in 2 months!

Forex robots and Expert Advisors? I don't use them. Forex trading is part art, part science. How I trade would nearly be impossible to code into a robot. A lot of it relies on your experience with recognising patterns, candles, looking at what news is coming up that will impact your trading pair/s. But I find trading breakouts the easiest way to make money now and with candlestick recognition, you can make heaps of pips every day.

Good luck to all for this new year 2010 - let's make a squillion!

Cheers
Phil

Price action trading is when you can recognize candlestick patterns, chart patterns, and also when you can trade with simple support and resistance the market gives you.

It is one of the advanced methods of trading, because you have to have an experience behind you to be able read charts without any indicators.

has anybody using price action.please share

I changed back to trading by feelings. I notice most newcomers to ForEx make profits until they start using indicators.

please, don't trade forex until you understand what it's all about and how it works by ensuring that you undergo a teaching and personal practical training.

CHIDI.

I have a strong guess that whoever understands the true system of which the currency market is based will be killed by the freemasons :)


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