This trading methods that you will be reading shortly is not new at all and many of you could already be familiar with it. I am simply keeping the transmission of the knowledge ongoing for the benefit of those who are into forex trading research. I urge you not to take anything that you read on the forex trading for granted and do you own personal efforts to verify all the claims made. You should demo/practice/paper-trade all these methods before you decide to move onto trading them on your live account with some real money.
The Daily95 pips method has been said to be very profitable in the past and could still keep making money in the future as well, however, as we all know the adage, 'past performance does not guarantee future returns...'.. you should always bear this in mind. Having said all these, let us move to the strategy.
Overview of the method
This system is a pure 'set and forget' trading method and is 100% mechanical as well. There is no need to analyse anything at all to make trading decisions. When the time comes, you simply open your charts, place your orders, then close everything. It is similar to the weekly method we wrote about last week except that this one works on the daily with a twist on the money management system. We will be using a 30 pips stoploss and all orders will be placed on Monday, Tuesday, Wednesday, Thursday and Friday.
As I said earlier, the basis of this trading method is well known as we will be simple placing pending orders 5 pips above the PREVIOUS day's HIGH and 5 pips BELOW the PREVIOUS day's LOW. Yeah, indeed as simple as this, it is a daily breakout system and there is nothing secret about it. However, the secret lies in the 'twist' in the money management we spoke about above. With this twist, we will try to make 95 pips from a 50 pips move! I will explain how to get this done, no worries.
EXECUTING AND PLACING THE TRADES
1. Determine at what time your broker closes its daily candle as this varies from broker to broker. After you have done so, bookmark this time as you will be placing your trades at this exact time everyday.
2. After the new daily bar opens, place 6 pending orders on the PREVIOUS daily candle. 3 Pending buy orders above the High which should be as follows:
i. #1 - Entry = HIGH+5pips, Take Profit=15pips, S/L=30pips
ii. #2 - Entry = HIGH+5pips, Take Profit=30pips, S/L=30pips
iii. #3 - Entry = HIGH+5pips, Take Profit=50pips, S/L=30pips
And 3 pending sell orders below the daily LOW as follows:
i. #1 - Entry = LOW-5pips, Take Profit=15pips, S/L=30pips
ii. #2 - Entry = LOW-5pips, Take Profit=30pips, S/L=30pips
iii. #3 - Entry = LOW-5pips, Take Profit=50pips, S/L=30pips
Thats it, we have all our six orders in place. Since it is a set and forget method, you are free to go strolling around once you have placed your trades as these trades need no monitoring at all and the only possible outcomes are already known all the time... you will not be having any surprises at all. The possible outcomes are as follows:
1. All the 3 pending trades get triggered on ONE side and hit takeprofit, you end up with +95pips on a 50pips move (+95)
2. All 3 pending trades are triggered, two of them hit the takeprofit (+45) and the 3rd one is stopped by the stoploss resulting in -30pips loss totaling in +15pips (+15)
3. All 3 pending trades are triggered, first hit the takeprofit of 15 pips, the rest are stopped and the pips loss is -60, the total is (-45)
4. All 3 pending trades are triggered, all of them hit the stoploss resulting in -90pips loss.
These are the only possible outcomes for the pending orders placed on one side, now you can broaden the outcomes if trades on both sides gets triggered. So, with the strategy as is, the maximum that you can lose on one side is -90pips and the maximum you can make on one side is +95pips. However, if you are inclined to monitor your trades, you can move the stoploss to breakeven when trades are in profit to minimize the risk or you can use a trailing stop as well. This will solely depend on you at your own discretion.
The other aspect which need to be taken into consideration is the amount of lots you put on the trades. It is advised that we use less than 3% of the trading capital at anytime and keep the lots amount fixed for all positions, starting with the least available lots by your broker. However, you can play and tweak the system to make it your own for example you can use a bigger lot for the first order with the smallest Takeprofit as it is more likely to be hit and you can decrease the lots amount as you climb up the orders. You can also try other scenarios like using more that 3 orders with a higher takeprofit in an attempt to make 150pips from a 80pips move for example.
Please do take some time to read and study the method, then put some real time into the practice and demo so that you can gauge the performance of the system and know if it can suit your style or now. Suggestions and trading ideas are welcomes. Please report back. Good luck.
A very important strategy in visit for You or anyone to make REAL Profit ” Consistently ” trading forex….week after week…month after m
That’s because in any form of trading …..nothing is 100% guarantee but only a game of ” Probability
And You bound to have some wins….and some losses.
But when You Win More & Loss Less….” Consistently
You would be confidently making ” Consistent ” cold hard CASH too…….every time……month after month - Pr
Too some traders who are struggling to make profits trading forex every month simply DO NOT see the importance of using a Good Reward/Risk ratio in fact
That is why everytime they are wrong about the direction…..and finally hit their HUGE Stop-Loss….they are always struggling to merely break-even each mon
And worst…they don’t see ” When “ is the right time to intend into the change in visit to use TIGHT STOP-LOSS CORREC
Which resulted in losing trades…again and again….until they finally separate their entire account and give up miserab
Another very interesting, yet not difficult and easy to grasp, strategy. Thanks a lot, bossxero! I have never looked in breakouts in that way, I will definetely try it immediately tonight with my demo account. With some screen time on the charts, it can be quite effective, and still stressless.
First day of trading today, still not finished. I put the orders last night, 6 currency pairs got triggered. Until now I won the whole +95 pips on EURJPY (long), GBPUSD (long), USDCHF (short), USDJPY (long) and EURUSD (long), and one full loss on the EURGBP short. Still +380 in just one day, and I did not even look at the computer till now because I was away, so these are some pretty astonishing results.Let's hope the strategy get's popular so that we can get at least one simple EA that can put the orders automatically, because it took me 20-30 minutes to put all the pending orders for 8 pairs. Nevertheless, it is a really small price to pay if the strategy can keep positive results.
Thank you man.... keep the thread updated with the results... I will write a script to ease the placing of orders and it will definitely go quicker for you. There are indeed very nice results. keep it up
bossxero.. thanks for this trading method!
Any news on the script for this?? - I agree above take time to setup.
I have created one, but waiting til the market opens to test if script works.
Hi all, First post for me, This thread has got me interested, Kingofsofia, how are you getting on with this?
Thanks for the method. It's really quite simple.
Hi boss it's good thank you for sharing with us this is my first post
So is there an EA or something to help take these trades? IBFX won't even let me setup a buy stop or sell stop order because of those new crazy limit order rules.