I used to trade off so many indicators, that I thought it was impossible to comprehend. Then I started this strategy which kept my charts totally clean. However I realised that people used indicators to trade, so since the indicators tell them what to do, they would form the basis of the trend, only getting caught out by greed, emotions, and stophunts.
So now I use a combination. Here's my latest trading strategy:
1. Only trade with what you can lose entirely. This helps deal with emotions. I also don't have to keep observing the charts and can go about my day job.
2. Trade with (big) stops. This deals with emotions and stophunts. I personally trade with 5 pip limits and 50 pip stops. It's a poor R:R but scalping keeps the winning probability high. That currently gives me a return of 5.4% per trade. I also personally only trade the AUD/USD to prevent analysis paralysis, furthermore I don't trade full time.
3. Be cognizant of the channels and EMA bounces. This can cause reversals which go against you.
4. Time MACD crosses (lower time frames - I use anything from 5 min to 1hr) with RSI 30/70, and a 50 candlestick low/high, while trading with the overall trend direction (higher timeframes - I use 1-Day), yet watching for #3.
5. Another potential entry point is 2359hrs on Mondays, Tuesdays and Wednesdays, with a double candlestick direction.
6. There's no such thing as a bad trade. Only a bad system. So give your system a chance and don't let emotions mess with it. Too much.
Trade safe!
Yours,
X
No comments:
Post a Comment