My little system

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Hello everybody

For about 4 months I'm reading everything there is on Forex and I made my own little system. This is my first real post so I hope you will enjoy it and will excuse me for my beginners mistakes. Hope we can improve the system.

I usually use it on the gbp/usd and the eur/usd. Okay, here it is:

You have a daily chart, and you put the "today trend 2" indicator on it, and the "awesome indicator". At 12 o'clock midnight (gmt+1) you go either short or long with a take profit of 10 and a stop loss of 40.

rules long: awesome previous formed and closed candle is green and today trend 2 gives a blue arrow.

rules short: awesome previous formed and closed candle is red and today trend 2 gives a red arrow.

This is it, I hope we can improve this system .

 

Your 1st beginners mistake:

Lets say that you would have a hitrate of 80% (wich is unrealistic)

80 x 10pips profit = +800pips

20 x 40pips loss = -800pips

Total profit ----------------

excl spread 0 pips

incl spread -200 pips on gbp -300pips

With a hitrate of 80%, and as I said very unrealistic, you still loose money and even with a hitrate of 90% you come to an avg profit per trade of 3pips on euro and 2pips on gbp ?!...To make your system worth while to trade you need a 100% hitrate.

At some point you say "I usually"...that usually is that the last 3 days ?..because if you would trade this system for a couple of weeks you would've noticed that you loose

money with your rules...

So a lot of improvement is needed...

regards...iGoR

PS. The first thing that will go true your head now is lower the stop and higher the profit. But that will make your hitrate drop severely...

 

txh for the response.

The clue is, that as you can see in the charts, about 90% of the time the candle moves 10 pips in both sides. My idea is to get these 10 pips. THe only problem is, that 1: I have to know in which direction the first move will be and 2: I have to have an indicator wich signals to stay out of a trade. I don't have to trade every day.

 

Martijn

Firstly I agree with iGor on his explanantion and then you admit as to not knowing which direction to trade. Why not test some oustanding methods first before trying to develop something that a lot of people are doing already but differently.

Secondly, would you mind posting the"Today_Trend2" indicator here please? I have a successful method, but I nee to develop my skills on the Daily chart.

Don't give up though. Best wishes.

 

Try this Awesome for your Daily Chart........

Try this on your Daily chart and tell me if it is any better? If not, delete it.

Sorry for having misspelled your handle.

Best wishes.

Files:
awesome_daily_marijn.mq4  3 kb
 

thanks

you are correct that there are a lot op different, and very good, systems on this site and on the internet. The only problem is, that you have to be online during the day, and that's because of my school obligation quite impossible. That's why I was looking for such a systeem. Does somebody know some of these systems?

Files:
today_trend_2.mq4  10 kb
 

The systems that you have to look for are the breakout systems with pre-defined rules.

But be awere that those systems ask nerves of steel because they have the tendency to make big overall profits at the end of the year but have also serious drawdowns. ex. you can make 3000pips at the end of the year but a drawdown of 1000pips is not uncommon. And there is no way to get around this.

regards...iGoR

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