What is the H-system forex trading system that you use?

September 14, 2006 by  

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:

  1. 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.
  2. I don't want to feel responsible for someone using this system and then losing money because of it.
  3. 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:

  1. Trade the GBP/USD only
  2. 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)
  3. Trade during the hours of 2am EST and 11am EST only
  4. Always enter with 3 lots at the same entry price (unless slippage occurs)
  5. Always exit 2 lots after 30 pip profit each (60 pip total)
  6. 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)
  7. 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.
  8. 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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