Surefire trading systems?

[mikeross]

I've started this thread simply because there doesnt seem to be much discussion in this forum about trading systems. I think a great system is by far the only way to be sucessful in any form of trading.
For me the most important part of any system is sound money management. When I first started trading forex I had no idea how to manage my cash and regardless of which indicators you use its inevitable some trades wont win. I now always plan my trades with a well thought out stop and limit and I always make sure my risk:reward ratio is better than 3:1. That way even if I lose on half of my trades I still come out with profit!
I hope some of you guys join this thread and maybe post about systems or indicators you find useful.
Maybe we can all be a little bit more profitable!!

[RFHarris]

Well, I just started in the whole forex thing. I am a writer by trade, which pretty much means I'm just above the 'broker than a joke' income level. I don't plan on using forex to trade a lot, but an extra 50-100 dollars a month would be really usefull. I don't have a large amount of capital to invest, I am starting out with only a few hundred dollars that I have saved up. If I am able to make a little extra income, I plan on putting it away for my kid's college education, buying thier first cars, and so forth.

I would be interested in some strategy information. First though I have to send in my stuff to Forex Club, which I am seriously getting around to doing. Its been a busy week!

[mikeross]

It sounds like youve got a plan RX! I think the best way to start out in forex is with a minimal amount of cash. End of the day if it ends up all gone its not the end of the world. According to a lot of sites Ive visited its not unheard of to blow 5k learning how to trade effectively. I guess a few hundred is much better than that!!
A system I've been experimenting with lately is based mainly around the ADX indicator. The adx gives an indication of the strength of a trend so I basically wait until a trend starts to gain strength. When the ADX line rises above 20 I use that as a entry signal and go with the trend. The di- above the di+ would indicate a bearish trend and vice versa. I also wait for the trend to begin around the daily pivot point and set my target at either the next resistance or support line. Its a very basic system but I seem to be making a few pips from it. Perhaps this isnt the best explanation either but it makes sense to me!!
Im still wet behind the ears though perhaps theres someone with a bit more expertise could post about my little system???

[branac]

Hi guys,

I would like to add that position sizing is also very important. Choose the amount of money you want to risk for each trade (experienced traders say that 2% of your account balance should do it for beginners), and than size your position for every trade according to the stop loss. That way you can survive even long loosing streaks and learn from mistakes.

branac

[RFHarris]

It sounds like youve got a plan RX! I think the best way to start out in forex is with a minimal amount of cash. End of the day if it ends up all gone its not the end of the world. According to a lot of sites Ive visited its not unheard of to blow 5k learning how to trade effectively. I guess a few hundred is much better than that!!
A system I've been experimenting with lately is based mainly around the ADX indicator. The adx gives an indication of the strength of a trend so I basically wait until a trend starts to gain strength. When the ADX line rises above 20 I use that as a entry signal and go with the trend. The di- above the di+ would indicate a bearish trend and vice versa. I also wait for the trend to begin around the daily pivot point and set my target at either the next resistance or support line. Its a very basic system but I seem to be making a few pips from it. Perhaps this isnt the best explanation either but it makes sense to me!!
Im still wet behind the ears though perhaps theres someone with a bit more expertise could post about my little system???

Well, I don't have to worry about losing 5k, I don't even have 5 K...that is a LOT of money for me!

Interesting, Ill read up on that.

[John Berzitskiy]

Hi everybody,

I think one of the most important part of any strategy on Forex is to control
your emotions and don't let them get in a way of your preset goals. Many traders underestimate the power of emotions and they slowley get carried away and end up loosing money. Also, I see some interesting ideas, i wll post some of mine strategies little later.

Later,

[mikeross]

well said john - its too easy to let emotions rule especially when theres money at stake!! If nothing else a strong system gives us a means of keeping those emotions in check... if your strong enough to stick to it of course.

Ive recently been using some setting for ema's that ive found usefull for confirming trends and reversals....

I use 4 in total - Period 88 of High's and Low's
Perios 144 of High's and Low's

I found it quite self explanitory as an indicator if you add it to a chart. See what you think and perhaps post some uses???

[RFHarris]

Ah well I lost mostly all fx clubs and my money this week. I didn't have any beginners luck.

And since I don't really have any more money to put in, I'm just going to chill for a few months and then try again.

It was fun though, you guys are a great group and I learned alot!

PS: 2% of what I had would have been 2$. Not a lot. I'm more an all or nothing kinda gal. : P

[Dennis Carr]

Ah well I lost mostly all fx clubs and my money this week. I didn't have any beginners luck.

And since I don't really have any more money to put in, I'm just going to chill for a few months and then try again.

It was fun though, you guys are a great group and I learned alot!

PS: 2% of what I had would have been 2$. Not a lot. I'm more an all or nothing kinda gal. : P

Rita, it's always good to take a break from the market. Maybe, while you are chilling you'd like to take a look at my Forex Primer. It'll be available soon in the Forex club members area. The guys are flagging it as 10 email seminars. These 10 sections combine to make a 60 page guide to Forex trading. I'll be on hand on this forum to discuss any points you may have.

This goes for all Forum members of course!

[RFHarris]

Rita, it's always good to take a break from the market. Maybe, while you are chilling you'd like to take a look at my Forex Primer. It'll be available soon in the Forex club members area. The guys are flagging it as 10 email seminars. These 10 sections combine to make a 60 page guide to Forex trading. I'll be on hand on this forum to discuss any points you may have.

This goes for all Forum members of course!

Sounds great Dennis thanks!

[John Berzitskiy]

well said john - its too easy to let emotions rule especially when theres money at stake!! If nothing else a strong system gives us a means of keeping those emotions in check... if your strong enough to stick to it of course.

Ive recently been using some setting for ema's that ive found usefull for confirming trends and reversals....

I use 4 in total - Period 88 of High's and Low's
Perios 144 of High's and Low's

I found it quite self explanitory as an indicator if you add it to a chart. See what you think and perhaps post some uses???

Hey mikeross,

How low you think EUR and GBP will fall. I think EUR might test out 1.34 pretty soon.

What do you think?