I trade intraday. The philosophy of my trading system: Forex is a controlled market. There is a Market Maker and there is everyone else. The Market Maker’s job is to knock out all participants by their stop-losses and move the price further in its own interests. My job is to recognize the Market Maker’s actions and enter a trade after the crowd has been taken out by their stops. My trading system will be laid out here in narrative form, because there is a lot of material.
Disclaimer: Dear readers! I am not a professional trader. I want to become one. You should not open trades with real money after reading my trading plans. This can lead to losses!
Parameters:
- The system does not use indicators, oscillators, or any other mathematical functions. I work only with the price movement algorithm and the candlestick chart.
- Trading is intraday. A position is carried over to the next day only for a trade with high potential and only at specific places in the market.
- No averaging, no martingale, no increasing lot size after losing trades.
- Only 2 trades are available within one trading day. The first is one of the base entry points or a continuation of the move. The second is for re-entry if the first trade was stopped out. If both trades are stopped out, trading stops for the day.
- Trading without a stop-loss is forbidden. The stop-loss is calculated based on the market situation and does not exceed 1% of the funds allocated for trading. If the stop-loss size exceeds the allowed value at the moment the entry point forms, the trade is skipped — no matter how correct it looks.
- Take-profit is set by one of two rules:
- A target area on the chart, defined before entering the trade.
- A profit norm.
- Trading during news is forbidden, because at that moment there are manipulative actions to take out market participants by the Market Maker. If there is an open trade, it is closed forcibly one or two hours before important news is released.