Example Of A Forex Trading System: Part 2
TRADING SETUP
Euro / U.S. Dollar intraday chart
5-day exponential moving average (5EMA)
Normal 200-day moving average (200SMA)
Laquerre oscillator
TRADING RULES
Place stop loss 1 pip below the most recent support level.
Price target is the risk taken in pips x 1.5.
Use only closing prices.
Maximum risk per trade is 2% of account balance.
EXPLANATION OF ABOVE TRANSACTION
We are clearly in the sale area + Laquerre the oscillator rises from the oversold level back above 0.15. We buy immediately on the opening price of the candlestick following the closing of the previous system that validates this. In case of using the intraday chart is just after 11 o'clock in the evening our time (new "day" in forex).
The Euro / U.S. Dollar exchange rate is bought at 1.4869.
The Stop Loss is 1 pip below the most recent support level placed at 1.4623.
Risco in pips: 1.4869 - 1.4623 = 246 pips (Entry Price - Stop Loss price)
Price target: 246 pips x 1.5 = 369 pips (risk x 1.5). The price target is located at 1.5238.
Money Management: How many lotjes there may be acted upon?
Suppose a trader with a mini forex account of € 20,000.
Max. risk / transaction is 2%.
A maximum of € 400 be risked (2% of € 20,000).
1 pip is worth about € 0.65 in a mini account with an exchange rate of 1.4869.
Number of mini lots: (max risk / transaction (€ 400) / (risk in pips (246) x € / pip (€ 0.65)))
Number of mini lots: 2.5 - rounded down, this gives 2.
In case of a stop-loss, there will be a loss to be recorded from € 319.8.
When the price target is reached will be recorded a profit of € 479.7.
related posts
- stealth forex system+download indicators
- forex, locking position
- pattern system free
- forex ichimoku trading
- macd osma
- free download fxfisher systems
- how to trade with gator oscillator in forex
- macd and osma indicator
- waddah attar indicators
- signal indicator system 1 2 3
Forex is simple follow the trend and you will rich.
ConversionConversion EmoticonEmoticon