Trades easy to implement. Just set entry take profit/stop loss, and forget! Collect +50-pips daily profits!
I found the following public domain information about a simple manual forex trading system recently. This system has a potential of banking +50 to 300 pips per trade trading with only the Daily Chart. I have been testing it on a demo account and it seems to work the majority of the time depending on the currency pairs you select. I'm looking at perhaps creating an expert advisor to automate the order placement process if there is enough interest among the www.4xwins.com subscribers. This would be a free EA for subscribers to perhaps use with our suggested forex brokers. If you are a new visitor, take a look at our special rebate offer for the opening of live forex accounts. Finally, we do offer free demo accounts to try this strategy out as well.
Current SDFX Demo Performance
The founder of this system believes in trading longer time frames simply because all rules of technical chart analysis hold true (more often) and like many of us, you don’t want to sit in front of a computer screen all day long if you can avoid it. Expressed another way, most of you perhaps one day would like to be full time traders; however it doesn’t mean that you spend all that time in front of computer screen if you can work smarter and automate as much of the process as possible. Like many o fyou, I would rather be reading, playing golf, going on vacation or fishing. Thus, this is a long term approach and hence it is based on using only the D1 Daily Chart time frame with any currency pair that meet the entry requirements as it will be fully explained.
Review Trading Signals:
At this point in time, this is a mechanical trading system. Now, let’s see if you can spot the correlation between the indicator located on the bottom of the chart and the currency pair price action. When the two lines (green and red) of the indicator cross above or below the 0.00 reading, on the next bar is the time to either make a new entry or exit from the trade. You should be able to spot the last USD/CHF long entry (almost +10 pips profit) for this example which is set to take profit at +50-pips and stop loss at -100-pips. You should agree that that every time AC indicator changes color (and crosses the 0 line) it gives us an entry signal.
Let's continue with this presentation. I need to stress this point! This trading system uses a daily chart time frame which means each Candlestick (price bar) is worth one day of trading. I have added another (public domain) additional tool for you and my www.4xWINs.com subscribers. The price details indicator provides the current spread, the pips to open which means how many pips have been generated since the opening of that current price bar. Because the currency price does jump around during the course of the day, the Hi to Low value is the total pips movement for that day. That is different than the pips to open which should be different. Finally, you are provided with an average number of pips for that currency pair for that day.
What You Need to Setup Trades:
You will need to select one or more currency pairs for your SDFX daily trade. The more currency pairs you review for a potential trade setup, the more opportunities you will have to make some profits without waiting around to the next trade. You can start with the EUR/USD, USD/JYP, USD/CHF, EUR/JYP, GBP/USD. Set them all up with the chart template I have provided you and you can quickly review each currency chart for a trade. Now, you might ask how am I going to do this if I am at work and/or I don't wish to use my computer or leave it on all the time. In that case, may I suggest you sign up for my VPN service which is dirt cheap and compare to what you could be earning in profits is rediculous to worry about. Just keep in mind that some currency pairs have larger spreads. But, at the same time, currency pairs like GBP/JYP have some wide price swings which is great for larger profits. Trade what you feel more comfortable and please practice FIRST in a demo account.
1. Open up an MT4 currency pair daily chart (D1) for example on the USD/CHF.
2. I'm going to give you two choices (easy self install program or the do it yourself route) to set up the MT4 chart indicators. If you wish to read how the SDFX indicators were set up, fine. You can read it in the next two steps and then download the auto setup program off my 4xWINs website. Otherwise, once you down load the program, jump to step number five and by pass the next two steps which won't be necessary.
3. You will need to install two indicators. First, under the "Insert" & "Indicator" menu commands, apply Bill Willam’s Accelerator Oscillator (AC) indicator. That indicator will display on the bottom of the screen under the chart.
5. For those of you that downloaded my self-install program and ran it, you should now have all the necessary files and chart template ready for easy setup on your chart. It can't get any easier than that. Now, load the currency chart of choice and place on the D1 daily time frame. Right click on the chart using your mouse cursorand select "template" and "OZFX" as your menu choices. The chart will look as the next two follows below
6. You are now ready to practice in a demo account and eventually open or transfer to a live Forex trading account. You should know that I am a referring agent for many forex brokers and I can offer you the ability to earn rebates on your forex trading volume which is NOT that common. You would be helping me out so I make a small fee, so I can continue to offer you benefits like this material you are going to use. Contact me at 4xwins@bellsouth.net if you are interested.
Chart Observations and Trade Execution:
You are going to watch the two indicators that overlap each other on the bottom of the MT4 chart set to the daily D1 time frame. As you can imagine each price bar is a full day of trading and in the course of one 24-hour day, there is going to be wide price swings. In other words, rarely will you see a trade that you enter and say one hour later you are out of the trade with the stop loss or take profit values you set. The trades usually can take one or two days.
The technical indicator pair of red and green lines will at times be narrowly close, on top of each other, or wide apart from each other. The narrowing of the two lines means dropping momentium in the price trend. The widening of the two lines usually means an increase in the price trend momentium. The criss-crossing of the two lines suggest a reversal in the price trend and a heads up for a pending movement above or below the center of that graph which is the 0.00. That is the 50th yard line in our Forex football field. When both lines touch that marker, get ready on the next price bar to take a position. Now, practice and instincts will tell you when to commit yourself on the trade. That's it for the mechanics. Summary!
Going Short (Sell to open) Short Entry: RED AC below 0.00 and Stoch below 00.0. This means you are expecting the currency to drop in price value to your target take profit.
Going Long (Buy to open) Long Entry: Green AC above 0.00 and Stot above 00.0. This means you are expecting the currency to rise in price value to your target take profit.
Trade Order Exits: Opposite Buy/Sell signal or as per Money Management. Quite simple rules to follow and not too time consuming.
Money Management:
The lot size is going to depend on how much risk capital you wish to expose yourself.
- Trade Lots with Stop Loss 100 pips away because you are using the daily time frame.
- Take Profit on 20% of your Lot size at 50 pips. Move Stop Loss to Break Even (BE).
- Take Profit on the next 20% of your original Lot size at 100 pips.
- Take Profit on the next 20% of your original Lot size at 150 pips.
- Take Profit on the next 20% of your original Lot size at 200 pips.
- Let the last remaining 20% of your original Lot size run until you an opposite entry signal is reached.
So, let's assume you have $10,000 to risk in a Forex standard account and you risk 2.5 lots on each trade. That means that 20% is .50 lot size per take profit step. The profit would work out to:
Take Profit#1 @ 50-pips x .50 = $250
Take Profit#2 @ 100-pips x .50 =$500
Take Profit#3 @ 150-pips x .50 = $750
Take Profit#4 @ 200-pips x .50 = $1,000
Take Profit#5 @ ???-pips x .59 = ? But, you would have at least $2,500 in locked in pips profit.
Max Loss @ 100-pips stop loss x 2.5 lots = $2,500. The Risk/Reward ratio turns out to be darn close to a 1:1 or better depending on your Take Profit #5 20% of the original Lot size. Since, the SDFX forex trades are ONLY made based on the daily D! time frame, the trade has a high probability of success. A ratio of 1:1 would work just fine. If you choose to do back-testing then try and ignore signals from late November to end of Dec. Low volume during this time of the year creates wild swings. Spend 2 minutes every day to analyze 8-10 of your favorite currency pairs. Demo it for 2-3 weeks and post the data of your trades for everyone to see and learn on our Demo-It database.
Wishing you all, "the best of good buys!"
Herm