Making money with a systematic approach requires obeying the following rules: *See hourly EurCad example chart (can you do that?)
• A systematic trading approach, tested on historical data, should be executed with precision and accuracy (if possible, a computer should generate the signals).
• Although we concentrate on pattern recognition, candlesticks, and Fibonacci ratios, other tested strategies should work as well.
• The portfolio should have 5 to 10 Forex pairs or products that are all analyzed using the same trading approach.
• Long and short signals should be allowed.
• Each position should be protected with a stop-loss.
• The profit target should be known once the position is entered.
• Each product should have a historically good trading range. I Use around 100 ADR pairs (now most are GBP and Eur ones)
Each trading strategy should perform in real-time trading according to the philosophy behind the trading concept. For example, a long and flat strategy cannot make money in bear market conditions, but it should make money in bull markets.
Find your trading edge and follow a plan for every individual trade you make. Mine includes: scalping or day trading on hourly, 4 hourly or daily time frames, trading from end of Tokyo to end of London (high liquidity and volume), setting stop, enter and take profit on all trades (be patient and not greedy).
• A systematic trading approach, tested on historical data, should be executed with precision and accuracy (if possible, a computer should generate the signals).
• Although we concentrate on pattern recognition, candlesticks, and Fibonacci ratios, other tested strategies should work as well.
• The portfolio should have 5 to 10 Forex pairs or products that are all analyzed using the same trading approach.
• Long and short signals should be allowed.
• Each position should be protected with a stop-loss.
• The profit target should be known once the position is entered.
• Each product should have a historically good trading range. I Use around 100 ADR pairs (now most are GBP and Eur ones)
Each trading strategy should perform in real-time trading according to the philosophy behind the trading concept. For example, a long and flat strategy cannot make money in bear market conditions, but it should make money in bull markets.
Find your trading edge and follow a plan for every individual trade you make. Mine includes: scalping or day trading on hourly, 4 hourly or daily time frames, trading from end of Tokyo to end of London (high liquidity and volume), setting stop, enter and take profit on all trades (be patient and not greedy).