Forex trading strategy #8 (Teodosi's simple system)

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!


"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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I usually trades in the following ways :
1) If trend is perfectly clear and strong ,only trades along with the trend.In some cases I selects contra-trend signals but which is closed immediately when a reverse candle appeared on the chart.
2) In othercases wait for reverse signal but exit immediately if any irregularity in price movements appeared ( keep away from news times).SL is fixing at 30 pips and if it is hit I will reversing the trade which is highly profitable in most of tha cases.

Hi Edward,

Really appreciate what you are doing here and great thanks to Mr. Teodosi for his generousity in sharing this system. I hope yourself, Mr. Teodosi or someone else who is successfully using this system can answer the following:

Trade entry is perfectly clear, exit is not (at least to me)

1) Is trade exited completely when 1st reversal candle appears


2) Is trade exited and an opposite trade immediately taken when 1st reversal candle appears


3) Is trade open untill 100 pip stop loss is hit or it reaches overbought / oversold and a reversal candle appears.

Best Regards,


If u re using Metatrader , click insert option and point mouse to line and select horizontal line .After inserting line to chart u can adjust it by double clicking on the right end of the line .

If the currency is in a strong trend ,use retracement continuation entry for safe play.I mean , suppose the currency is in a strong up trend and we got a sell signal.Instead of trading that signal we have to wait for a reverse signal ( RSI and stochastic below 25 and a bullish candle appeared which is approximately closed middle of the previous bearish candle ).This type of entries are more reliable and safest.

hi there,

Could you please tell me about the yellow and red line, which is touching the candle's. How to put them in the chart.

Darshan Bangia

-> If I have strong up trend and my Stoch and RSI are overbought, and we have
down trend candle (black candle) close at the middle of the last
(in this case white one) I enter my trade.

->In my point of view, the pattern should ideally cover not only the last, but the middle of previous candle as well - Bullish or Bearish Kicker.
Yes you lose few pipps, but its far more accurate.
Thanks for sharing!

Udaya Arunakantha, i will advice you stick to the pattern u use in growing your 5000 to 10055.28. am thrilled can u add me on facebook so we can discuss this is my email [email protected] my facebook ID is Orumgbe Christian Ehikwe.

Dear Edward,

I tested "Forex trading strategy #8 (Teodosi's simple system)" and 90% of trades are profitable.
But still i have a problem with this strategy, what is the S/L and T/P in pips for this strategy (1H charts).

Also I'm going to be a full time trader, If you have a good strategy than Teodosi's one, please send it to me.

I attached my trading result with Teodosi's simple system.

Thank you,

Udaya Arunakantha,
Sri Lanka.

I find it very frustrating that the chart displayed by Teodosi fails to follow his own rules...there are trades not taken that should be and trades taken that should not be if the rules are followed strictly, when we make adjustments with hindsight and strategy can look awesome.

It's Hasan again,
I forgot to ask your permission, if I may, to share a period of my live trading results here for a relatively long-enough period. My intention is that people do not necessarily seek for the holy grail which is right 100% of the time, but give some effort to turn a sound strategy into their own holy grail. After all, this thing goes either up or down, right? Use the disciplinary tools and the odds are on your side. Learn the behaviour of price in general and for your beloved pair(s) separately, learn all the technics in order to ignore later. Do not confuse yourselves very much. Be disciplined and then be disciplined again.

Thank you Edward again.

Hello Edward,
Many thanks to you and to Teodosi. I've been using this strategy as is since January 2009 almost exclusively, besides another one giving me small intraday pips and more excitement throughout the day, as by nature trading is boring. :). Although I peeked all comments, with due respect, I ignored all "technical" contributions. I've been extremely religious to follow the original plan, money management rules and I've compounded prudently. I remember I started initially with 0.3 lots and now trading with 8 lots. I have not tried to pick tops and bottoms, just my target. I can proudly say that I managed to build a fair wealth and a very generous monthly income on this.

What I want to say is that my strict follow of what I have decided, though very difficult at the beginning, has been of much more importance than the strategy itself.

Your site is full of wonderful strategies from yourself and from many brilliant and sharing brains. I strongly believe any of them works as long as one does the homework with due care and then absolutely follows what his/her plan says. No exceptions.

May Allah bless you, your team and everybody selflessly sharing here.

My best wishes,

Hello Theodosius and Eward,
you are phenomenal. Yesterday I applied the technique and now I have about 170 pips and still trading, I wanted to know if my entry was just, you were a red candle on the night at 17, oo about Italian hours.

I Tested this strategy and results are very good. I got One or Two trading opportunities per day.

Hello all,
I'm trying to coding it in Java. Coding it, I can have a really good point of entry but I need to improve the exit strategy. To resume I use:
RSI(7) with OB 70 and OS 30
STOCH(5 3 3) with OB 75 and OS 25
I check the length of the candlestick of 2 H ago and I compare to the close value of the candle of 1 H ago. Right? Should I use some other instrument to avoid false entry?
to exit I use the same strategy but inversed, or I use a TP of 250 or a SL of 100...
I'm wrong in anything I wrote?

could anyone suggest me some other instrument to avoid false signals?

thank you very much


thank you Edward for your note. I'm just new to this system and seem really promising... Do you think is a good system on EURUSD and timeframe 30 minutes?


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