FX System

[edgeoface]

Hi I have developed a forex trading system which has made good returns in the last 5 month of demo trading I am planning to go live this week.

My system is as follows

I use a candlestick chart with daily bars over a 6 month timeframe

I go long when the slow stochastic indicator is in the 20% oversold zone and the MACD at 12,29,9 shows a change in market movement and for short positions I use the same but when the slow stochastic is in the 80% overbought zone. Once these long and short positions are present I put a stop loss of 2% of my capital and a take profit of 6%.

I use this on 10 forex pairs and on average make about 7 trades per month and positions are usually open anything from a few days to 2 weeks or more.

I have made a 30% return in the 5 month of demo trading this system using leveraged CFDs the first 3 month I made good returns the last 2 month I have made small gains.

Any advice will be much appreciated

 

[shadowninja]

Start small with real money. See how you feel.

 

[Kinger]

I'd say the same, if your happy go live. Then you'll have a better opinion in 6mths.

 

[puregold24carat]

Hi I have developed a forex trading system which has made good returns in the last 5 month of demo trading I am planning to go live this week.

My system is as follows

I use a candlestick chart with daily bars over a 6 month timeframe

I go long when the slow stochastic indicator is in the 20% oversold zone and the MACD at 12,29,9 shows a change in market movement and for short positions I use the same but when the slow stochastic is in the 80% overbought zone. Once these long and short positions are present I put a stop loss of 2% of my capital and a take profit of 6%.

I use this on 10 forex pairs and on average make about 7 trades per month and positions are usually open anything from a few days to 2 weeks or more.

I have made a 30% return in the 5 month of demo trading this system using leveraged CFDs the first 3 month I made good returns the last 2 month I have made small gains.

Any advice will be much appreciated

Which 10 pairs have you chosen and why ?

 

[edgeoface]

Which 10 pairs have you chosen and why ?

i trade USD/JPY GBP/JPY EUR/JPY USD/CAD USD/CHF GPB/CHF EUR/USD EUR/CHF and other majors i chose these because i hade to start somewhere lol also they are very liquid markets

 

[Adamus]

Get together as many statistics as you can on your system and keep watching them to see how live performance bears up.

Try backtesting it further back to see what your biggest drawdowns and losing streaks were.

Take your profit and loss record and calculate the optimal leverage. You definitely don't want to be overleveraged, and if you're underleveraged you're leaving money behind.

That's my canned advice.

 

[NVP]

i trade USD/JPY GBP/JPY EUR/JPY USD/CAD USD/CHF GPB/CHF EUR/USD EUR/CHF and other majors i chose these because i hade to start somewhere lol also they are very liquid markets

I would only ever trade pairings choosing one from each group below


team1 usd / yen / cad / chf
team 2 aud/nzd/gbp/euro


look at your prior results and see if this filter made it more profitable and reduced losing trades

N :smart:

 

[NVP]

these youngsters have no stamina do they re posting

 

[Adamus]

attention deficit syndrome, I guess. Too much playstation and not doing Latin at school.

Personally speaking I would trade as many pairs as possible. Not that I think your groups aren't valid, I just do it that way. I'm still trying to prove whether this ameliorates the correlation or not, which is not such a simple task.