simple easy to execute trading strategy

Hi Guys,

A bit of an inquisitive post, would anyone care to share any simple trading strategies they have that are consistent and work well?

I have been trading for 6 months with no real strategy and i'm starting to notice i'm not really getting anywhere i seem to make a bit and lose a bit and that's the pattern i am at. started really well ive managed to make 5k from ?400 but i fear that maybe a little down to luck.

Any tips or ideas you are willing to share would be greatly appreciated :-)

cheer

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This is simple and easy-to-execute, but (like all steadily profitable trading methods) it requires plenty of patience and discipline.

It's particularly good for rewarding patience and discipline, and for demonstrating that "simple" can also be "steadily profitable".

This method trades EUR/USD and/or GBP/USD during the daytime (UK time): don't enter trades before 8.30am or after about 8.00pm; we're covering most of the UK and US sessions.

Start the day with an M15 chart, draw obvious horizontal lines of support/resistance, and retain them on the M5 charts (draw any further obvious lines of S/R there, too) from which you enter and manage the trades. On the M5 charts, add a standard 14-period RSI indicator with "overbought" and "oversold" marked at 70 and 30.

Enter long at the start of the next bar when the price reaches a line and prints a pin-bar (with the point of the pin at the bottom and either nearly reaching or just crossing the line) and the RSI is below the 30-line; enter short when the converse happens and the RSI is above the 70-line. The pin-bars don't quite have to be "perfectly formed" but their opens and closes must have a distance between them of no more than 20% of the bar's length.

And now the important part: trade management. Each day, until you've banked 24 pips for the day, use a fixed target of 12 pips and a fixed stop-loss of 8 pips for each trade. After this, use the same method but without a fixed target, and when the trade's moved 12 pips into profit, move the stop-loss up from -8 pips to breakeven, and/or from there use a trailing stop of about 12 pips, to see if you can catch the occasional "runner". Don't do this until you've banked 24 pips for the day.

You should find an average of 3 - 4 good trades per day, with this method. (That means there'll be some days without even 2 good trades). If you find many more than that, then something's seriously wrong and you're not using enough patience and discipline to await only the best trades.

Risk no more than 2% of your account on each trade.

Good luck!

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Have you ever tried to excel @ any other hobby in life? Say- martial arts?
In 6 months time, where would you expect to be as a martial artist? Wouldn't you still be a white belt, wet behind the ears, and with no deep understanding of what you're doing?

Keep pressing forward, and don't stop. Never stop learning, and never rely on anyone else for anything.
I can give you links to 150 different "easy" strategies. There is absolutely nothing "easy" about trading, and, anyone who tries to package you an "easy strategy", simply is not a professional. In 6 years time, maybe you'll be making money consistently enough that you can actually withdraw on a monthly basis and use those funds to pay your electricity bill.

Trading is a life-long endeavor. You will learn things 6 months from now that you completely overlooked and/or were just unaware of even existed as a principal. Most veteran traders will tell you that they literally learn something new each day. Learning something new is like treading water- the moment you stop treading, you will drown.

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Quote Originally Posted by FOREXunlimited View Post
anyone who tries to package you an "easy strategy", simply is not a professional. In 6 years time, maybe you'll be making money consistently enough that you can actually withdraw on a monthly basis and use those funds to pay your electricity bill.
That's really extraordinarily patronising, dismissive and unhelpful.

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Quote Originally Posted by lexys View Post
That's really extraordinarily patronising, dismissive and unhelpful.
Wasn't the intention, but tone doesn't come across well on a message board.
Obviously exaggerating a bit, but the underlying message is that there is a reason why the turnover rate for new traders is what it is...food for thought.

Ever hear the old adage: "There's more money to be made in teaching someone how to trade, rather than trading."? Very relevant in the world we live in today.

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