Introduction
I have been trading this system with great success for 3 weeks. But it is very raw and I need FF help from experienced traders.
I hate to make such claims without statements , but the thing is ,I had my account managed and I lost -21%. The trader was using 0.2 and 0.5 lots. I managed to make 5% in 3 weeks using 0.01 and 0.02 lots , I made over 1000 pips. So I'll show my stats later when I am +ve.
The System:
The systems is so simple and works on daily charts,so can't be affected by noise and stress. It is trading in the direction of the trend when good news is released. How?
You can have a quick read about currencies outlook and news anywhere. You can read weekly outlook at Forexcrunch to see what is going on. All you need is to know what are strong currencies and weak currencies , there is no need for deep fundamental analysis.
Now you divide the currencies into strong currencies and weak currencies. So at the moment I am writing;
Strong:
AUD
CAD
NZD
Weak:
EUR
JPY
CHF
(I don't have a clear view on GBP -can wait after election- and USD right now)
Without reading anything you can take a look at daily and weekly charts if you like. But I prefer reading. Remember that trading is like anything , requires some sort of work.
Now after we have the list of currency strength we will do only these trades for the following week. Thats only an example for this week.
Short
Eur/AUD
EUR/CAD
Long
NZD/JPY
AUD/JPY
CAD/JPY
If we want to short the AUD we short AUD/NZD or AUD/CAD , not AUD/JPY.
When to make the trade??
Now after you spot these trends ,you will look for trend retractments , then you enter after retractments , right?? No. wrong.
You will wait for good news for strong currencies or bad news for weak currencies and THEN you enter in the trend direction.
When Exactly?
You DON'T make limit orders during news release!! You wait for the news , MAKE SURE traders buy on the trend direction and then you enter with trend direction with SL around 50-60 pips or at break of trend line.
And what is TP ?? You trail stops to the next news release or set TP 100-150 pips. I always noticed it can move up to 200-300 pips sometimes.
In Conclusion:
The system is very simple, safe and effective. You buy in daily trend direction and with a REASON to buy. Because what are the probabilities to lose after: 1- Following the trend. 2-Good news 3- Price actually moved in trend direction and news direction!? Very low probability IMO.
I have been trading this system with great success for 3 weeks. But it is very raw and I need FF help from experienced traders.
I hate to make such claims without statements , but the thing is ,I had my account managed and I lost -21%. The trader was using 0.2 and 0.5 lots. I managed to make 5% in 3 weeks using 0.01 and 0.02 lots , I made over 1000 pips. So I'll show my stats later when I am +ve.
The System:
The systems is so simple and works on daily charts,so can't be affected by noise and stress. It is trading in the direction of the trend when good news is released. How?
You can have a quick read about currencies outlook and news anywhere. You can read weekly outlook at Forexcrunch to see what is going on. All you need is to know what are strong currencies and weak currencies , there is no need for deep fundamental analysis.
Now you divide the currencies into strong currencies and weak currencies. So at the moment I am writing;
Strong:
AUD
CAD
NZD
Weak:
EUR
JPY
CHF
(I don't have a clear view on GBP -can wait after election- and USD right now)
Without reading anything you can take a look at daily and weekly charts if you like. But I prefer reading. Remember that trading is like anything , requires some sort of work.
Now after we have the list of currency strength we will do only these trades for the following week. Thats only an example for this week.
Short
Eur/AUD
EUR/CAD
Long
NZD/JPY
AUD/JPY
CAD/JPY
If we want to short the AUD we short AUD/NZD or AUD/CAD , not AUD/JPY.
When to make the trade??
Now after you spot these trends ,you will look for trend retractments , then you enter after retractments , right?? No. wrong.
You will wait for good news for strong currencies or bad news for weak currencies and THEN you enter in the trend direction.
When Exactly?
You DON'T make limit orders during news release!! You wait for the news , MAKE SURE traders buy on the trend direction and then you enter with trend direction with SL around 50-60 pips or at break of trend line.
And what is TP ?? You trail stops to the next news release or set TP 100-150 pips. I always noticed it can move up to 200-300 pips sometimes.
In Conclusion:
The system is very simple, safe and effective. You buy in daily trend direction and with a REASON to buy. Because what are the probabilities to lose after: 1- Following the trend. 2-Good news 3- Price actually moved in trend direction and news direction!? Very low probability IMO.