My previous strategy saw me suffer a $10k loss. So I went back to the drawing board, read up more and came back with a new strategy.
So far, I'm 14 trades for 14. Not too bad. So let's start documenting the process.
1. Choosing Pairs. Using IG trading, I trade only 4 pairs with the best spreads - AUD/USD (0.6 pips), EUR/GBP (0.9 pips), EUR/USD (0.6 pips) and USD/JPY (0.7 pips). The spreads do change at different times, so I only trade when the spreads are as such.
2. Ride the Trend. Use a 1-day timeframe, and check EMA 20, 50, 100. I will only trade in the same direction as all three.
3. Watch for Levels. At the same time, I ensure I'm not at a support/resistance level in opposition to the trend.
4. Taking Profit. I trade without a stop loss. However to reduce the margin required, I give an exorbitant stop loss (say 50 pips). I put a limit of 1 pip. Sure this kills my risk-reward ratio - but my objective in this strategy is a high win-rate.
The reason why I'm using this strategy, is because while I still believe in the previous one, it requires more time than I have to analyse. With this current 1-pip strategy, it's a fire-and-forget 5 minute endeavour. So let's see where it goes. Remember, there are no bad trades, only bad systems.
Yours,
X
