The Koala System ( Newbie Friendly )

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trading801
159
trading801  

Hi all,

a little background .. am using this simple 3 MAs system for sometime now.. some of you who reads my blog may know already.. The Koala System !

Aim of system is to aid traders, especially newbies, to trade in the direction of the trend, and not suffer the 3 margin calls that i did last time!

I am posting here so that more will learn about this system and hopefully benefit for it.

I am a strong advocate of patience and proper money management. I hope you will too.

Feel free to post and suggest ways to improve. Together we learn forex!

***

content

  1. introduction
  2. the system
  3. on going testing
  4. exceptions
  5. to note
  6. picture examples

1) Introduction

Hi all,

I used to trades at wrong time and watch winning trades turn on me to hit

SL. I want to believe like all of you that forex works.

My idea of the koala system came when i was searching for no brainer ways to "trade" forex. I came across a 3 MA system and work constantly to tweak it.

2) The System

i call it the koala system because i like koalas. Secondly, i wish i can laze around like them. Forex is my hope

3 Moving Average Indicators on EURO/USD M15

Period of 3 , 6 , 9

Smoothed and apply to Median Price

Make them bold and off different colors.

We are looking to trade when the 3 MAs turns parallel / diverge with each other. The trade is in the direction of the MAs.

The earlier you enter, the higher chance of success.

3) On going testing

SL50

I will usually use trailing stop loss of 45

TP I usually use 50 and unless there is a major S/R nearby, i will usually trail it.

However TP is flexible and based on your style.

The Koala System is to minimize your wrong entries AGAINST the trend. It does not guarantee easy money!

4) Exceptions ( High risk )

You have to do your homework and be aware of the market. If you are aware of upcoming important releases ( NFP for example ). Stay out!

5) To Note

Before you trade, always zoom out to at least a few days of M15. If it is OBVIOUSLY trending against, don't trade upon onset. Wait for 1 more candle to confirm.

IF your M5's KOALA is opposite of your direction, DO NOT TRADE

6) Picture Examples

First attachment

an example of a no trade situation. The day in context was a major bank holiday. Trades can go either way due to low volume.

Hence the Koala is right ... when in doubt, stay out !

Second attachment

a classical false alarm. If you take a look at the level 1.4000, caution should be taken

However if you use the standard 50 SL, you would have survived.

Third attachment

a good entry! The Koala is parallel / diverging

A)I hope i can gain insights from YOU. This is a honest sincere post don't flame.

B) Please do not link to other systems or have other discussions. This thread is for the refinement of the koala system

Feel free to try it out.

Take a look at the M15 charts and you can see it is pretty accurate.

Critically evaluate the koala system.

Make it better for all!

Trade safe.

I do reviews of the EUR/USD and more on my blog @ TheGeekKnows.com . I will also post the weekly reviews of The Koala System here.

p/s please rate this thread if you find it useful

Cheers

*you are responsible for your own trades.*

trading801
159
trading801  

Hi all.

Latest The Koala System Review from my blog posted here for your convenience !

***

" Good day fellow The Koala System users.

How is your weekend so far? Hope it is going great

In the previous review, we saw 3 risky opportunities which is definitely not my preferred way to trade The Koala System.

Nonetheless, a standard opportunity presented itself on the last day of the week allowing a harvest of 100 pips.

Let us now take a look at how The Koala System performed this week.

The first two days of the week saw us facing no trade zones. Users on a riskier approach ( triangle ) might have harvested 30 pips on the second day but once again this is not the preferred way to trade.

Early on the third day, complications surrounding the Greece deficit crisis and later the downgrade of the ratings of Portugal, took it's toll on the EUR/USD. Risk aversion was strong. If you caught the standard opportunity ( circle ) presented here and used a trailing stop, a harvest of 100 pips was possible.

This was a strong down trend and this is what The Koala System patiently waits for. Strong safe trends

The fourth day brought us a no trading zone again as the currency pair struggles to find direction after testing the support of 1.3285+/-.

After a final test of the support, a standard opportunity presented early Friday. Riding on increased optimism due to the possible agreement of the mode of aid for the Greece deficit crisis, a harvest of 100 pips was once again possible.

A few users wrote to me saying that they were happy with the results this week. This is what i will like you to note. The Koala System gives us good and bad weeks. Stay true to the values of patience and discipline and a slow and steady success should not be out of reach!

Remember making money in Forex is never about shortcuts!

trading801
159
trading801  

all the best for the new week! lets finish it in green !

trading801
159
trading801  

question remains.. will it cover the gap? hmmm

trading801
159
trading801  

anyone caught this small harvest??

Files:
eurusd.jpg 26 kb
trading801
159
trading801  

Hi all, i hope you benefited from The Koala System.

Find below the latest The Koala System Review from my blog posted here for your convenience !

***

Good day Koalas.

Hope you are having a great weekend

Next week saw success for many koala users who patiently waited for the right opportunity. Complications surrounding the Greece deficit crisis and the downgrade of the ratings of Portugal resulted in a bearish momentum and a harvest of 100 pips was possible.

Let us now review what The Koala System did for us this week.

This week was a fruitful one.

A total of 3 standard opportunities were possible and at least one would have been a 100 pips harvest if the proper trailing stop was used. Despite having the EUR/USD ending the week almost flat, this was possible as the currency pair took wide swings. Optimism towards the US economy battled out with the concerns surrounding the Euro Zone crisis.

Nonetheless we must be cautious as spikes were plenty. Planning your trades well is critical.

One special mention i would like to make is with regards to the third standard opportunity on Friday. Friday was the US Non-Farm Payroll day and hence it was a wise choice if you had decided to stay out of it then. Knowing the horrors of NFP, trades on NFP days always carries additional risk. Therefore only consider trades on NFP days if you know what you are doing and is not risking excessively.

Be patient and stay true to the values of The Koala System. Trade Safely.

Head over to the EUR/USD Weekly Review for a heads up for the up coming week.

trading801
159
trading801  

I think an important thing to note for the upcoming week is the developments of the Greece deficit crisis . . .

trading801
159
trading801  

Hmmmmm.. The Koala System is pretty choppy today due to low volume.. anyone feels the same?

trading801
159
trading801  

oh and if you are using the 200 EMA of the koala, you can see the price resting there now...

trading801
159
trading801  

Greece problems are dragging the EUR down apparently ... this crisis has much implications ...

mistersimple
3
mistersimple  

i like simple systems.. not bad for beginners. did u try it on other pairs?

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