Today I will share a strategy plan in forex trading or may be referred to as a Trading Plan.
The Trading Plan is not a theory but I personally apply it in my daily trading.
This strategy is very simple and easy to implement. But after a long time I followed the phenomenon of forex traders on social media, I don't think all traders can run it.
Why? Because I noticed that traders now like things that are technical in nature. Many have a scientific and research point of view in trading. There is nothing wrong, there is actually the interesting side of trading. But not for me an Old School follower.
Simple forex trading plan
For me trading is make money no matter how is the way. Easier is better. My principle is if it can be simple, why make it complicated.
Let's get started.
To make the understanding simple, I will direct an example with an illustration of numbers.
Step 1
1. I prepared a capital of $1,000
2. I have prepared a risk limit of 50% of the capital.
3. I divide my risk limit into 10 times: $500: 10 = 50$ (I call it R)
4. My transaction lot is constant : 0.1 lot.
5. R is my SL limit for each transaction.
6. For forex $50 = 50 pips my SL.
7. Conclusion:
If my SL hits 10 times in a row then my risk limit is reached, which is $500.
Step 2
1. I will calculate the daily average of a pair.
2. How to calculate: the high - low of the last 5 days are added up and then divided by 5.
3. Pairs with a daily average of 100 - 200 pips will be an option.
Step 3.
1. Every day determine the direction of the pair. Use any technique that is believed or has been back tested or that you picked up from the masters you know. The target: Today Buy or Sell.
2. Determine the entry point. Anything you are quite familiar with. Can be : parabolic , SNR , stochastic , moving anything .
3. After the OP immediately installs SL: TP
With a composition of R : 2R . If you refer to cases above 50 pips: 100 pips.
4. Leave until one hit.
5. Repeat Step 3 for the next day.
Step 4.
Result evaluation:
If we 5 x OP
a. 0 true 5 false : - 250 pips
b. 1 true 4 false : - 100 pips
c. 2 true 3 false : + 50 pips
d. 3 true 2 false : + 200 pips
e. 4 true 1 false : + 350 pips
f. 5 true 0 false : + 500 pips
Evaluation :
If e and f : congratulations your technique is solid.
If a and b: immediately evaluate what is wrong with the entry method.
If c and d : normal for a technique.
If your technique is able to reach c and d only . How is it calculated in 1 month. I took the c only.
50 x 4 weeks = 200pips / month . If the capital is 1000 means 20% profit a month. Remember it's only c what if it's d or e.
Step 5
As a Trader of course you agree that the logic above will not be refuted.
But it's also not that easy to run.
Here's the thing that will fail.
1. Tempted Stop Loss and Take profit before it is touched.
2. 2 times wrong in a row makes you hesitate to continue.
3. If TP or SL is hit at the beginning, the remaining time is long, then you can't stand not to take another position.
4. If SL is hit, it tends to want to enter again to repay the loss.
5. Interrupted fundamentally passing.
Step 6 ( overcoming step 5 )
1. Remember Step 1.2 limit risk.
2. Always remember if you can / have lost 100 pips then what is the reason we can't profit 100 pips. The price doesn't go up or down.
3. Once you are confused, look at step 4.c, you don't have to be perfect for every month wd profit.
4. Focus only on TP & SL, want to be fundamental through ghosts, pass by, don't waver, stay focused on 4.c
5. If step 4.b occurs after a week, immediately evaluate step 3.1 and step 3.2, there must be something wrong because just using a coin toss is not necessarily that bad, let alone using analytical techniques that have a scientific basis.
6. For 3.1 and 3.2 you want to get from any master, try to do a back test. Want to use what I teach in the video is also quite accurate so far.
Ok friends, this is a series of steps that I can share to get consistent profits. For those who just understand, please try, for those who already understand, consider it a reminder, for those who don't agree, please ignore it.
Greetings profit!
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