What is the H-system forex trading system that you use?
I won't give the specific details of this trading system NOT because
I don't want to share but mostly because I don't feel like giving it
out will be of any help to anyone for the following reasons:
- It is important for everyone to create a system that fits
their personality and trading style. I'm not a successful trader yet
but I've heard that doing so can lead one closer to success. - I don't want to feel responsible for someone using this system and then losing money because of it.
- I
am using real money to trade this system and I've spent a lot of time
backtesting and forward testing. Since I just started trading it for
real, I still don't feel confident that this system will be a success
(see #2)
What I will say is that this system has very
simple rules. It uses technical analysis but nothing that anyone hasn't
heard of. Here are the rules I will state:
- Trade the GBP/USD only
- Trade using
the 30min or 60min charts (so far trading the 30min is just as
profitable as the 60min but the 30min has a higher risk/reward) - Trade during the hours of 2am EST and 11am EST only
- Always enter with 3 lots at the same entry price (unless slippage occurs)
- Always exit 2 lots after 30 pip profit each (60 pip total)
- Once
the 3rd lot reaches 30 pip profit, trail the stop using the last candle
high (if in a short position) or the last candle low (if in a long
position) - Place stop loss at the 34 EMA for all 3 positions on entry. Adjust the stop loss every 30 minutes if the 34 EMA has changed.
- If
trade was opened right before a hot zone (economic announcement), get
rid of the stop loss and use a mental stop. If 1 minute after the
economic announcement the price is below the stop loss in a long trade
or above the stop loss in a short trade, exit. This rule is to allow
the emotion to clear before exiting a position that may reverse.
The entry is just on price with only 1 confirming indicator. I'm
looking into using an additional indicator for confirmation but as of
yet, it hasn't proved to be useful.
You can see my trading history and results here:
http://www.forexproject.com/H_Trading_System/
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