Forex trading strategy #5 (5x5 Simple system)

Thanks Edward.

I read through the forum you listed and am in the process of reading Colin's revision on the Midnight strategy. I also liked the idea of combining the 5 strategies into something that could, perhaps, become a unique strategy for myself. I'll be happy to share that if that takes place.

Thanks for creating such an easy and well thought out site for all of us to learn from and benefit from.

B O B

Hi B O B,

The best advice would be to keep watching all 4-5 strategies you've named.
With time, you've probably come up with a mix of favorite rules, which will become your unique strategy.

I've mentioned my favorite set the other day to a trader on the forum, and we have our whole discussion published here:
http://forums.forex-strategies-revealed.com/advanced-strategy-the-midnig...

Hope it'll be of some additional help to you.

Best regards,
Edward

Hey Edward -

First off, your dedication to this website and your generosity is truly outstanding. Thank you for everything that you have and currently do.

I've really enjoyed my time looking through the website and learning as much as I can. I take notes, I copy charts, I write down comments that others have submited to revise or improve on a trading strategy. I've got pages of notes that are priceless.

As a newbie I'm slowly trading on a demo account while trying out various daily methods. Since I work full time I can only trade in the mornings, and then at night when I get home, so a daily method is where I'm at.

My question is, which daily method would you recommend? I know, a tall order. I've read that you prefer this 5x5 method, and also Advance #14. How's about Advanced 10? #3? 3 looks great but doesn't offer many signals. I started demoing Advance #1 and like that alot. Can I trade all of them and see which one works best? What if they give conflicting signals - is there a way to handle that?

I guess what I'm trying to ask is, what would be the best way to use the the limited time that I have. I've listed 5 different daily strategies and wonder if I need to whittle them down, or just continue to keep tabs on all of them and continue to trade each one and see what works best.

Thanks in advance for your time and your assistance.

B O B

Hi Milanthi,

1. Price crosses above 5 SMA, daily candle closes above 5 SMA.
2. As soon as the new daily candle opens next day (whichever time it is on your platform) and makes +10 pips above the previous candle's High - you enter a trade.

Regarding GBPAUD questions, I don't have this pair on my platform, so I had to check back with some free online charts. It looks that you've done everything well, but your stop loss was a bit too tight this time. Other than that, it is a valid entry.

Best regards,
Edward

Dear Edward ,

Please also tell me if I had done any wrong with the entry rules in the following trade

On the 24/02/2010 23.01 hrs, GBP/AUD- Short position at 1.7217
SL- at 1.72861...it hit my SL, is it normal or something wrong with my entry
also do we have to enter the trade on the next day after 10 pips from the closing price of the previous day candle ?

thanks

Thanks Edward,

One more question...
When you say "Enter Long when next daily candle makes +10 pips up,"
does this mean that 10 pips up from the opening price of the candle at 17:00 hrs

thanks
Milanthi

Yes, Milanthi
that's right, we will enter a trade on the next day.

Best regards,
Edward

Hi...

You have mentioned in the strategy " Always remember to take actions/enter the trade only after the signaling candle is closed." which means we have to enter the trade on the next day?
is that right?

Thanks
Milanthi

ok Edward,
tks fr all the answers.they are valuable as always
Miraclegirl

Hi MG,

Answering your questions:

1)if RSI is below 50 (for shorting) and the immediate next candle to the signal candle does not go below 10 pips but the next to next candle goes below 10 pips n rsi is still below 50,is the entry valid?

Yes, that's a valid entry signal.

2) Also,if the signal candle itself is very long,then can we consider the setup valid as very long movement has already taken place n not much steam left in the trend?sorry abt this question as this is a factor we consider more in shorter timeframes.I have no idea how it works in daily tfs.

If the signaling candle is extremely long, it is better to wait for a retracement. But if it's simply long, it is ok to enter, it often signifies that we broke out of some support/resistance level and the move picked up speed as brekout traders joined in. On daily charts after the long candles there is still enough steam left in the trend, although the move might be short living, e.g. continue forward for few well sized candles before settling for a retracement. One thing you would need to do after the entry is tightening and trail your stops to 1/2 of the length of the previous candle.

3) I would like to get some tips from you please on daily frames.To protect our acct on shorter timeframes,we stay away from newhours. but how do we protect ourselves on daily timeframes where several news are scheduled in all sessions.

On daily charts we don't hide from news hours. The only day when you may use extra caution is NFP report on the first Friday of each month.

4) I also want to know if there is any s/r indicator for daily frames.i use pivot lines for profits and sls on shorter tfs but have no idea where to book my profits on daily charts.can u please help with /R indi as i am very comfortable using s-r levels or any other tips on the same.

On daily charts we define S/R lines manually without indicator, this is always the best way to draw S/R levels.
However, the easiest way to find common S/R levels is by looking at tops and bottoms created by ZigZag indicator. In the same manner we can draw trend lines using Zigzag.

Best regards,
Edward

oh ok,
sorry for my impatience!
MG

Hi Miraclegirl,

Everything is ok.
The delays are caused by holidays, we're returning to work.
Edward will be back with answers in few days, I believe.

Cheers,
Thomas

I posted 2 questions 2-3 days ago.they havent appeared here.wonder what's wrong?

Hello Edward,
Me again!
I also want to know if there is any s/r indicator for daily frames.i use pivot lines for profits and sls on shorter tfs but have no idea where to book my profits on daily charts.can u please help with /R indi as i am very comfortable using s-r levels or any other tips on the same.
tks
Miraclegirl

Hi Edward and hi everyone,
Wishing u all a very happy new year!
Tks Edward for this strategy and this great website which is always open on my comp!
Regarding this strategy ,I have these questions:-
1)if RSI is below 50 (for shorting) and the immediate next candle to the signal candle does not go below 10 pips but the next to next candle goes below 10 pips n rsi is still below 50,is the entry valid?
2)Also,if the signal candle itself is very long,then can we consider the setup valid as very long movement has already taken place n not much steam left in the trend?sorry abt this question as this is a factor we consider more in shorter timeframes.I have no idea how it works in daily tfs.
3) I would like to get some tips from you please on daily frames.To protect our acct on shorter timeframes,we stay away from newhours. but how do we protect ourselves on daily timeframes where several news are scheduled in all sessions.
Please help
Tks and regards
Mircalegirl