hello! I've been a long time lurker at Forex Factory, I have been trading part time for five years. I recently have collected my thoughts together and have started trading with some consistency. As of this writing I am up 58% in less than four months. I wanted to get my ideas down in writing and thought i would start a thread.
First off, This is a method and not a system. A system has a certain set of ground rules that must be followed. I have found such systems may actually hinder your performance. A method is more complex in that it also incorporates a basic understanding of the fundamental nature of forex. Systems are Tech heavy and are usually pretty easy to implement. A method is more based on fundamentals and is a little harder. This is one of the underlying reasons I believe that most traders fail. they rely too heavily on the next gadget to slap onto their charts. And most of these gadgets rely on past price movement.
Now there are certain places in the past that price movement is important but most of these gadgets rely on the previous succession of bars. These oscillators in my opinion are completely worthless. After many failures of trying oscillator based systems I came to the conclusion they are all junk. I won't go into detail about this as it is a long and complicated story. All I have to say is that they are utter junk.
Methods On the other hand are based on price action and the underlying reasons why the market moves up and down. There are several factors that cause price action to move up and down as price travels through time. Price can only move up and down as it travels forward through time. The previous bars have little to do with the current price action. Methods utilize more price action in the moment and the underlying reasons why the price is moving. I will as best I can describe my trading method.
Ok first the easy tech stuff, I try to get as much information I need on one screen to avoid switching timeframes. I time my entries on the five minute chart but zoom out to hourly and four hour charts to look for technical areas of support and resistance that I would not see while zoomed in. I cannot explain my exact entry method yet as it involves some simple fundamental analysis.
Also I only trade the E/U as My time is limited. If I had more time I would trade more pairs but To keep things simple it is better t stick with one currency only adding additional currencies as time permits. This method will work on any currency but its best to stick with pairs with very tight spreads.
Attached below are the indicators that I do use.
First off, This is a method and not a system. A system has a certain set of ground rules that must be followed. I have found such systems may actually hinder your performance. A method is more complex in that it also incorporates a basic understanding of the fundamental nature of forex. Systems are Tech heavy and are usually pretty easy to implement. A method is more based on fundamentals and is a little harder. This is one of the underlying reasons I believe that most traders fail. they rely too heavily on the next gadget to slap onto their charts. And most of these gadgets rely on past price movement.
Now there are certain places in the past that price movement is important but most of these gadgets rely on the previous succession of bars. These oscillators in my opinion are completely worthless. After many failures of trying oscillator based systems I came to the conclusion they are all junk. I won't go into detail about this as it is a long and complicated story. All I have to say is that they are utter junk.
Methods On the other hand are based on price action and the underlying reasons why the market moves up and down. There are several factors that cause price action to move up and down as price travels through time. Price can only move up and down as it travels forward through time. The previous bars have little to do with the current price action. Methods utilize more price action in the moment and the underlying reasons why the price is moving. I will as best I can describe my trading method.
Ok first the easy tech stuff, I try to get as much information I need on one screen to avoid switching timeframes. I time my entries on the five minute chart but zoom out to hourly and four hour charts to look for technical areas of support and resistance that I would not see while zoomed in. I cannot explain my exact entry method yet as it involves some simple fundamental analysis.
Also I only trade the E/U as My time is limited. If I had more time I would trade more pairs but To keep things simple it is better t stick with one currency only adding additional currencies as time permits. This method will work on any currency but its best to stick with pairs with very tight spreads.
Attached below are the indicators that I do use.
Attached File(s)
FerruFx_Multi_info+_light_chart.mq4
79 KB
|
914 downloads
JMASlope_MTF.mq4
3 KB
|
881 downloads
market-hours-indicator-market-profiles.mq4
16 KB
|
879 downloads
PriceAlert.mq4
4 KB
|
814 downloads
#OHLC - HA.ex4
5 KB
|
820 downloads
JMASlope.mq4
11 KB
|
724 downloads
|
Uploaded Jan 22, 2013 5:16pm
SR_Barry_Eli_MTF_ammended.mq4
7 KB
|
750 downloads
|
Uploaded Jan 22, 2013 5:17pm