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Discussion in 'Forex Trading' started by drasfs, Jul 21, 2006.

1. ### drasfs

Its going to be hard to explain my seemingly very profitable trading strategy, that im going to explain now.

Take a look at this chart:
http://www.chartflow.com/chartserver/Images/GS4885.png

Do you see that there are 6 lines in it? Im going to use them to facilitate my illustration. For example the first line starts at 1.17,the second at 1.19 and the third at 1.22

If I enter a trade, I will hold the position until the chartline has covered 50% of the lenght from one line to another. For instance, the the first and second line is from 1.17-1.19, and half ot if is 1.18

Which is 100 pips.

So the currency has to have moved by 100 pips. You are not counting wheter it has increased or decreased by 100 pips,but rather the total currency change. Lets say the currency pair increased by 40 and decreased by 60, which sums up to 100 pips, and which also is the point at where I will liquidate my position, for take profit.

Stopp loss is currency change by 50 pips

ANd every time i get into a trade, i will follow the trend. So if it goes down, you will sell. and if it increase, you will buy.

Apply these rules, and you will get about 80% winning trades, and if you use a leverage of about 50, you will get an 80% return on your capital in one year.

You can calculate this, by applying these rules and drawing a line on this chart,and see the results.

2. ### drasfs

I would appreciate some opinions on this trading strategy.

3. ### DrawDown

OK.

At face value it appears it may give the ForEx a hard bargain.

You're like trying to hit a Jack rabbit on the run - very difficult to do.

I like the complexity mix. It takes a mix of structures and components to increase chances of winning a trade.

That is, a static formula like:

Enter @ this number / set a SL @ this number / set a TP @ this number.

will get wiped out in a matter of time in the market.

It takes more, or more depth of trading strategy, to win the ForEx consistently.

my2coinz.

dd

4. ### bibico

PLZ AM A NEWBIE IN FOREX I WILL KNOW MORE ABOUT FOREX THE TRADING ASPECT OF FOREX