I have not been trading regularly since early this year because I have other pressing matters.
All this while I have trying to put forward a trading system that is simple to use with few indicators being utilised. The simplify method will used the usual indicators I previously used. My target is to earn 50 pips during my trading session and my trading session will be less than 6 hours per day.
After reviewing the systems and indicators that I have used, I decided to use two basic indicators; BB Macd and Stealth buy & sell (SBS).
I used two time frame charts; 1 MTF and 5 MTF (sometimes 15 MTF)
The currency pair I prefers is EURJPY
Trading session: 00:00 GMT to 16:00 GMT ( Asian and European/UK session). Restricted my total trading session for 6 hours per day.
Profit objective: 50 pips per day
Entry procedure:
1. Check that there is no pending economic news.
2. If there is a news event and it occurs during my trading time, I avoids trading 30 minutes before and 30 minutes after the news event.
3. I refer the 5 MTF chart looking for Support and Resistance (S/R) level using fibo analysis, pivot points, round numbers, Bollinger Bands, 60 and 200 EMA, laguirre and Double CCI.
4. After the S/R level been determined, I wait for price reaction for trade entry.
5. Than the 1 MTF chart is refers using BBMacd and SBS for the entry.
6. Stop loss is at previous high/low with a minimum of 10 pips.
7. My profit target is set in two stages
A) First stage: take 20 pips profit and liquidate half (1/2) of my position.
B) Set the balance of my position with stop loss at entry price (breakeven) . After price reaction set stop loss with running stop of 10 pips.
