I would like to share with you a system that has consistently been successful for me, that I would like to call OzFx System.
What can You expect?
This system has a potential of banking 100-800+ pips per trade trading with Daily Chart.
Why Daily Chart?
As you could guess by now that this is not a 5 min scalping system. I believe in trading longer time frame simply because first of all rules of technical analysis hold true more often and second I donít want to sit in front of pc all day long.
Think like this, most of us one day would like to be full time traders; however it doesnít mean that we spend all that time in front of PC. I would rather go flying and playing golf. So I developed this system thinking of long term and hence it is based on Daily Chart.
See It For Yourself:
Letís see if you can spot the correlation between the indicator and the price action.
I bet you were able to spot that short entry (300+ pips). Tell me that you noticed that every time AC changes color and crosses the 0 line it gives us an entry signal. Am I right or right??
Did you see another short trade towards the left side of the chart?? That trade was worth 835 pips in 5 days.
No Clue So far:
I believe 90% of the people will be able to spot the correlation mentioned above. If you are one of the unlucky 10%, then I would recommend to try some other system and not to waste your time on this post.
The reason I say above is that we should trade using strategy that is intuitive and easy to follow. Technical analysis is not perfect science; I believe it is an ART, an ART to pick signals as they happen. I am terrible at spotting Flags, Triangles and Head & Shoulders. Hence I keep away from them and donít want to spend years to master them.
A Bit Of History:
I started with Forex few years ago simply because I like the volatility and leverage. Iíve never traded stocks in my life and no plans to do so ever. The only stock I ever held was given to me by the IT company I worked for.
As most of us I tried systems provided on Forums and also commercial system. I tried News Trading, 5 min scalping and astrology (just kidding), but had no luck. I wasted a fair bit of money and precious time on several systems that were not worth their while.
However the learning that took from that was these systems were complex, had too many indicators (or none) and required a great deal of discretion. So I went and did my own research to see what indicators make sense, what setting works best and what time frame they should be used on.
So What Is The System?
Short Entry: RED AC below 0 and Stot below 0
- Open up a daily chart on EUR/JPY.
- Apply Bill Willamís Accelerator Oscillator (AC).
- Apply Stochastic with setting 5,3,3 on top of AC. Use the template if donít know how to.
- Try and use demo MT4 from ODL securities. Every broker has different time when they start a new daily candle.
- ODL seems to have the time that works best. I only use their demo account for charts and place my trades on totally different broker.
Long Entry: Green AC above 0 and Stot above 0
Exit: OppsiteBuy/Sell signal or as per Money Management.
Filter: Apply 200SMA. If price is below 200SMA then only take short trades. If Price is above 200SMA then only take long trades.
The Risk/Reward ratio turns out to be 1:1 or better depending on your 5th Lot. Since we trade on daily and would only take trades with high probability of success, 1:1 would work just fine.
- Trade with 5 Lots with Stop Loss 100 pips away
- Take Profit on 1st Lot at 50 pips. Move Stop Loss to Break Even (BE).
- Take Profit on 2nd Lot at 100 pips.
- Take Profit on 3rd Lot at 150 pips.
- Take Profit on 4th Lot at 200 pips.
- Let the 5th Lot run until you see an opposite entry signal.
If you choose to do back-testing then take special care for signals from late November to end of Dec. Low volume during this time of the year creates wild swings.
My Challenge To You:
Spend 2 mins every day to analyze 8-10 of your favorite pairs. Demo it for 2-3 weeks and post the screen shots of your trades for everyone to see and learn.
Whatís In For Me?
It is time for me to Give Back. I learned a great deal from forums and thought there canít be another way to share something that can make us all a lot of money. Plus I hope to learn from others on how to improve this system.
Iíll reveal more info about the system once I start to see more interest in this post from Forum members.