Fox2Trading

1. Trading Philosophy

• Objective: Capture major trend waves lasting from 2 days to several weeks.
• Principle: Trade in the direction of the primary trend (D1) and find optimal entry points during corrective pullbacks (H4).
• Target Assets: High-liquidity instruments (EURUSD, XAUUSD, BTC, ETH).

2. Technical Toolkit (Indicators)

• Timeframes (TF):
  • D1 (Macro): To identify the dominant trend.
  • H4 (Execution): To pinpoint entry setups.
• Indicators:
  • EMA 20 & 50: Short and medium-term trend tracking.
  • EMA 200: The "Line of Control" for long-term trend direction.
  • RSI (14): To monitor momentum and overbought/oversold conditions (Avoid exhaustion).

3. Trade Setup (The "3 Momentum" Rule)

1. Trend Identification (D1): Price must be trading above the EMA 50 and EMA 200 (Confirming a strong uptrend).
2. Pullback Phase: Price gradually retraces to the "Value Area" – the dynamic support zone between EMA 20 and EMA 50.
3. H4 Confirmation:
   • Price forms a reversal candlestick pattern (e.g., Pinbar, Bullish Engulfing) exactly at the EMA zone.
   • H4 RSI bounces out of the oversold region (<30) to signal renewed momentum.

4. Trade Execution

• Entry Point: Upon a confirmed reversal candle close on the H4 timeframe.
• Stop Loss (SL): Placed below the nearest Swing Low or below the D1 EMA 50 with a specific Buffer (following your Buffer Pips logic).
• Take Profit (TP):
  • TP1: At the recent local high (Targeting a 1:1.5 to 1:2 R/R ratio).
  • TP2 (Runner): Trailing stop along the EMA 20 until a candle closes below it.
• Break-Even (BE): Move SL to entry after reaching 0.5R to 1R profit (aligned with your BE Alignment logic).

5. Risk Management

• Risk per Trade: 1% to 2% of total equity (Using Auto Lot calculation based on SL distance).
  
  • Maximum Risk per Asset: 10% of total equity (e.g., the total exposure for all open trades on a single asset like XAUUSD must not exceed 10% total risk).
  • Lot Sizing: Dynamic calculation based on SL distance to ensure the 10% cap is never breached.
  
  
• Psychology: Maintain a "hands-off" approach once the trade is live, unless the system warns of maximum Drawdown (DD) limits.