by EnigmaScalper: I will show you a strategy that I still use to this day (currently with more aggressive money management). The strategy is fairly simple and logically bulletproof. It works and it can bring a profit to your pocket every day. Its disadvantages are that it is quite subjective. The biggest advantage is – extremely high win rate (up to 95 percent). I know that there are some forex strategies out there that can easily match those results, but by observing them I have found out that most of the time they do so by risking far outside my comfort zone.
My forex strategy is based on simple signal that can bring you that high win rate, without necessity of manipulating lot size or using other even more aggressive trading approaches.
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So Let's look at my forex strategy
First of all I trade in 15 min chart of any currency pair. Usually I trade simultaneously on 4 – 6 pairs. It trade in 15 chart because I like speed of it. Surely, strategy can be applied on any timeframe with some adjustments.
What I do than I wait for relatively quiet mark period. To be more accurate range of the market should be quiet to normal. I simply look on all the candles to left of current price.
All of them (99 percent) should be normal to average size. Ideally there is trend present in the market, but this is not mandatory.
Once I identify suitable market conditions for trading I play a waiting game.
I wait for candle with a hot body. Meaning, that I wait for a candle that is so big that it almost seems like it doesn't belong in your timeframe. In 15 min chart, any candle with body width of about 20 pips will gain my attention.
This really is not a rocket science. There must have been a capital surge causing such a massive movement. What you want to do next is to follow the money – follow the massive candle. You place buy order on hot bullish candle and you place sell order on hot bearish candle.
What do you do next is mainly based on your experience – and this takes time, but hear me out.
I doesn't take as much experience to do so proficient. Discipline might be even more important.
What you do next must involve discipline.
First of all you protect yourself by placing stop loss at the opposite end of a candle.
Once the position reaches profit of couple pips 5 – 10 you move stop loss to break even.
To get your well deserved profit, you wait for trade to develop. Good trade will move into high green number very soon. Position that will stall after the entry in getting more dangerous with each closed candle.
Good trade should develope almost immediately after entry. Therefore, if position stalls, exit ASAP with as little profit as necessary.
Let's recapitulate:
Generally market is quiet.
There is no bigger candle body on the left side of the chart.
Once the profit of 5-10 pips is reached move stop loss to breakeven.
