Ok, here’s what I do for a strategy, or even a system, a general outline without going into huge detail – but don’t blindly copy any of this, just for the sake of it. It’s what I feel works for me, it’s been formed from my experiences, opinions, prejudices etc. You, on the other hand, may – hopefully will – have a completely different outlook and personality which is going to suit a different style of trading – there’s room for everyone.

Timezones
In general, I look to place trades shortly after the London and New York openings. Having formed a picture from the Tokyo market, I like to confirm it’s not completely mistaken, and then get on to whatever trend may be forming.

Timescales
I work with one-hour up to daily charts and maybe longer timescales than these at times – I’m not averse to rolling over trades and certainly would never consider closing just to avoid rollover. Short-term, 5-minute charts and scalping – too old for that sort of thing….

Keep it simple
I stick to a relatively small number of pairs – all of which involve the cable. It’s what I know, it acts as a base for the knowledge – and so I do feel it allows me the chance to take advantage of more exotic action when the opportunity arises, NOK/GBP for example.

As an entirely personal prejudice, I avoid EUR/GBP – I’ve come to the conclusion that there are too many and too subtle variables involved in the relative closeness of the economies.

Pesky Indicators
EMA, exponential moving average, usually 26-period – it’s always the first indicator I slap onto a chart – and I never make a trade unless it’s confirmed by a clear signal from the EMA. This, and Bollinger Bands to check out the volatility, are all that’s required…
I’ve flirted with a lot of other indicators in my time, and had, frankly, mixed results. These are the basics and I don’t see any compelling reason to hang on to some of the more complicated indicators, Alligators, RSI… etc.

Hide what you’re doing?
I don’t use stops. Or to be exact, while I do place fixed stops on the trade, they are bracketed very generously and only there in the case of catastrophe, or lottery win. Usually, I’m paying attention to the market and closing trades manually. This isn’t because I’m totally petrified by the possibility of being stop-hunted, more like I’ve never been able to go very far away from market data while my money is riding on it, so since I’m there, I might as well make all the decisions myself at the time.

3 Responses to “My Forex System”

1. My Forex System says:

   February 5, 2009 at 11:55 am

   [...] Original post by ForexPerform – Learn Forex Trading [...]

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2. Forex » My Forex System says:

   February 5, 2009 at 12:15 pm

   [...] It’s what I feel works for me, it’s been formed from my experiences, opinions, prejudices etc. You, on the other hand, may – hopefully will – have a completely different outlook and personality which is going to suit a different style of trading – there’s room for everyone.[...]

   Reply
3. danish says:

   February 16, 2009 at 12:34 pm

   Good information. I want to know if we can put the stop loss or not

   Reply