I have been looking at several methods and developing my own over the
past few months/year, I feel that we have a habit of over-complicating
what needs not be at all complicated.To get more news about
WikiFX, you can visit wikifx.com official website.
Why？
I think it may give a sense of control in a game where you don‘t
know what’s going to happen next. Hence, we come up with all kinds of
complicated rules and methodologies that give us a sense of
“sophistication” and confidence, when really were either riding a trend
or trading between a whipsaw.
With that in mind, I wanted to share what I could come up with as the most basic Forex strategy possible.
Step One: Pick a Market. I personally like GBP/JPY and XAU/USD for their volatility.
Step Two: Identify Whether the Market is Trending or
Consolidating. Use whatever you want (200 EMAS, MACDS, HHHL, LHLL, etc.
but mostly just use your eyes…
Step Three: Wait for a small movement in the opposite direction of the trend.
Step Four: Execute your order on the next confirmation candle of a
continuation of the trend. Calculate your position size so that if the
price comes below your confirmation candle you lose 1% maximum.
Step Five: Set your take profit at 1 - 2% gain.
I haven‘t done a lot of backtesting on this. I only trade with
£500 whilst I’m new and I only trade between the London and New York
sessions. I take a maximum of 2 trades per day and I journal each and
every single entry to see if there was a better opportunity.
I hope this helps someone who is brand new, please let me know if
Im completely off my head and need to go back to the drawing board…
The Wall