Guys we should activate this topic since it is the most important portion of forex trading after all.....

Well, I use a very simple system:

-4 Hour Charts
-Bollinger Bands as S/R levels
-MACD (Determine the trend) and RSI (to confirm the trend) as Indicators
-Go long when bullish crossover is indicated by MACD, RSI is above 50 and not in the overbought area, also the Candle be should be near the lower band.
-Go Short when Bearish Crossover is indicated by MACD, RSI is below 50 and not in the oversold area, also the Candle should be near the upper band.

This system is considered a powerful system since it includes three of the most important indicators (BB, RSI, MACD).

I'll post my other system few days later

Take care,,,,,,,

Thanks

We will be more thankful if you kindly upload a screenshot for any of the systems you share. It will be a big help for everybody, specially beginners.

Hello Vahid, good job you are doing but I was thinking of you creating a window where traders could paste their trades for the week, the gains and their losses in terms of pips or dollars in any case their sentiments and excitements could also be shared by us all.... I think it will go a long way to encourage members and also make it more realistic....Just thinking though....luv ur site....blessings to u and ur family

whats is the best setting for macd?

Hi Vahid ,
I just watched today's video on controlling emotions etc. and I am happy to say that after 2 years of full time trading I can "almost control my emotions".
I'm figuring that's, about 4000 hours of trading /looking at charts, for those who are just starting out.
I have finally devised a system that I am happy with, and it is as simple as you can get.
Basically it is

1 HR time frame.
1-1 profit ratio unless major supp/res comes before
Price B/O with or against trend.
Smallest length of trend line 12 hrs
S/L above/below last obvious high/low
Scissor trades only with trend from outside Bollinger Bands.
Major supp/res areas taken into account before taking a trade. eg if a trade is too close to a res/supp line (no trade)
Trading between 00:00 and 14:00 hrs GMT

I know you are not fond of back testing but I am fairly sure I can now back test now reasonably accurately.
I have tried using lots of other indicators eg RSI, MACD, Stochastics, Middle BB, with trend, 8/8c/o etc etc but have come back to the very basics.
I would like your opinion if you could thanks
Attached is a chart showing some trades and an excel spread sheet showing results for 15 weeks

Cheers
Ian

I have seen many similar systems and I would also be interested to see a chart example of it actually working.
By a bullish cross on the MACD, I assume that you mean the cross of the zero line.
To be honest I would imagine it to be very rare to get a bullish cross with the candle near the lower BB. I think that normally the candle would be above the bollinger middle band. And vice-versa of course

Good luck
Keith

Hi Ian,

Congratulations for your achievements.

Your system looks like a simple and good system. I don't see anything wrong with it. Finally it is the trader who should feel comfortable with his/her system. I do not have anything against back-testing, if you see the truth not what you like to see. In back-testing we usually see the good and strong trade setups, but not the false signals. If you can see all the signals, then we can trust the back-testing result.

Keep up your good work.

Thank you Vahid,
That gives me that little more confidence that is always needed.
Just one other question--- I feel that I could take more than one position at the same time with this system so long as the pairs are not related.
Say AUDUSD being one trade and EURJPY being the other trade. Would that be sensible in your opinion.
Cheers
Ian

Hi Ian
"Scissor trades only with trend from outside Bollinger Bands."

Cam you expand on that? I haven't heard the term Scissor trades before.

Thanks

Michael

Hi Michael,
I have attached a chart as a picture is worth a thousand words.
Trade set up 1 is a scissor trade although not quite out of the BB. But I wouldn't take that trade as is it against the trend,(trend is down at that stage).
Trade set up 2 is almost a scissor trade or at least equal to, with an almost abandoned baby followed by an engulfing candle. I also wouldn't have taken that trade as I like the engulfing candle to engulf the candle before the abandoned baby(or Doji)
Trade set up 3 is a perfect scissor trade. Way out of the BB and the engulfing candle has fully engulfed the preceding candle. The trend is now up (higher highs higher lows)
Also if you put your chart onto a line chart you can see that the trade set ups look like the pointy end of a pair of scissors.
Hope this helps.
Cheers
Ian

Ian,

I like your scissor trade. I never heard it called that before but I am sure you have a high success rate if you trade it the way you explain it. I have a question. Have you ever tried this same methodology on bollinger middle band? Seems like that might be a good trade set up also if you followed your same rules and only trade with the trend.

Bill

Thanks Ian, your system looks like a simple but effective strategy.
I'm afraid that I am unable to understand your spreadsheet though as there are no headings and trade details.
What strike rate have you experienced so far?

Cheers and good luck

Keith

Hi Bill,
No I haven't tried it on the middle band. I started to do some testing on the middle band last year but that was on smaller time frames.
I must put that on my list of to do's.
Cheers
Ian

Hi Keith,
Sorry I should peruse things before I post them.
On that spreadsheet which is all EURUSD trades(on backtesting)
Column B in the time the trade was opened.
Column C is irrelevant now, it was the direction of the trend on the 4h chartat the the trade would have been opened.
Column D is the percentage of profit (on a 1-1 risk reward)that the losing trades got to before they turned back and became a loser.
Column E is the results-- Green for winning trade, yellow for losing.
Any with B/E means that the trade went to 50% profit before turning back and hitting the stop loss which was reset @ break even once the trade hit 50% of 1-1 risk reward.
I'm only in my 4th week now of real trading with this system and the results are---
Week 1 6 wins 4 losses
Week 2 2 wins 1 B/E
Week 3 2 wins (1 was only a 50% trade though)( one of my rules is to take 50% profit if the b/o candle is abnormally large)
Week 4 2 wins 2 losses (this week)

Cheers
Ian

Hi Michael,
I have attached a chart as a picture is worth a thousand words.
Trade set up 1 is a scissor trade although not quite out of the BB. But I wouldn't take that trade as is it against the trend,(trend is down at that stage).
Trade set up 2 is almost a scissor trade or at least equal to, with an almost abandoned baby followed by an engulfing candle. I also wouldn't have taken that trade as I like the engulfing candle to engulf the candle before the abandoned baby(or Doji)
Trade set up 3 is a perfect scissor trade. Way out of the BB and the engulfing candle has fully engulfed the preceding candle. The trend is now up (higher highs higher lows)
Also if you put your chart onto a line chart you can see that the trade set ups look like the pointy end of a pair of scissors.
Hope this helps.
Cheers
Ian[/quote]

Thanks Ian

I get exactly what you mean now. As Keith says, this looks simple and effective.

All the best

Michael

Ian, very pleased to see you are in Australia. Would you mind explaining "Scissor trades only with trend from outside Bollinger Bands".
Regards,
Kevin

Hi Kevin,
If you scroll back up for 4 or 5 posts I have attached a chart and an explanation for Michael, which should answer your question. Let me know if you need any more info.
Cheers
Ian

Thanks Ian, are you trading around midnight (Australian non daylight saving time)?
I've been trading equities for over 5 years (not well) and I'm now giving full attention to FX.
You seem to be using MT4 with Go Markets. Is that correct?
Cheers,
Kevin

Hi Kevin
No my trading hours are 00:00 to 14:00 on the Go markets platform which is 8AM to 11 PM non DST
And yes go markets is the MT4 platform (almost) The candles can be a little different from the ones you see Vahid post.IG markets are a little different again.
I don't think anyone has come to a definite conclusion as to why, other than these charts that we used are "manufactured" by market makers and they can do what ever they like with their charts.
Cheers
Ian