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Forex System


Hello Friends,

I would like to introduce you to the Forex System that has consistently been very successful for me.

What can I expect?

This system has a potential of banking 100-800+ pips per trade trading with Daily Chart.

Why Daily Chart?

As you could guess by now that this is not a 5 min scalping system. I believe in trading longer time frame simply because first of all rules of technical analysis hold true more often and second I don’t want to sit in front of pc all day long.

Think like this, most of us one day would like to be full time traders; however it doesn’t mean that we spend all that time in front of PC. I would rather go flying and playing golf. So I developed this system thinking of long term and hence it is based on Daily Chart.

See It For Yourself:

Let’s see if you can spot the correlation between the indicator and the price action.

Click on the image below

Forex System

I bet you were able to spot that short entry (300+ pips). Tell me that you noticed that every time AC changes color and crosses the 0 line it gives us an entry signal. Am I right or right??

Did you see another short trade towards the left side of the chart?? That trade was worth 835 pips in 5 days.

No Clue So far:

I believe 90% of the people will be able to spot the correlation mentioned above. If you are one of the unlucky 10%, then I would recommend to try some other system and not to waste your time on this one.

The reason I say above is that we should trade using strategy that is intuitive and easy to follow. Technical analysis is not perfect science; I believe it is an ART, an ART to pick signals as they happen. I am terrible at spotting Flags, Triangles and Head & Shoulders. Hence I keep away from them and don’t want to spend years to master them.

So What Is The System?

Setup:

  1. Open up a daily chart on EUR/JPY.
  2. Apply Bill Willam’s Accelerator Oscillator (AC).
  3. Apply Stochastic with setting 5,3,3 on top of AC. Download the template here.
  4. Try and use demo MT4 from ODL securities. Every broker has different time when they start a new daily candle. ODL seems to have the time that works best. I only use their demo account for charts and place my trades on totally different broker. Feel free to test other brokers.

Short Entry: RED AC below 0 and Stot below 0

Long Entry: Green AC above 0 and Stot above 0

Exit: Oppsite Buy/Sell signal or as per Money Management.

Money Management:

  1. Trade with 5 Lots with Stop Loss 100 pips away
  2. Take Profit on 1st Lot at 50 pips. Move Stop Loss to Break Even (BE).
  3. Take Profit on 2nd Lot at 100 pips.
  4. Take Profit on 3rd Lot at 150 pips.
  5. Take Profit on 4th Lot at 200 pips.
  6. Let the 5th Lot run until you see an opposite entry signal.

The Risk/Reward ratio turns out to be 1:1 or better depending on your 5th Lot. Since we trade on daily and would only take trades with high probability of success, 1:1 would work just fine.

If you choose to do back-testing then try and ignore signals from late November to end of Dec. Low volume during this time of the year creates wild swings.

My Challenge To You:

Spend 2 mins every day to analyze 8-10 of your favorite pairs. Demo it for 2-3 weeks and post the screen shots of your trades for everyone to see and learn.

What’s In For Me?

It is time for me to Give Back. I learned a great deal from forums and thought there can’t be another way to share something that can make us all a lot of money. Plus I hope to learn from others on how to improve this system.

Files:

1. Sample Trades
2 . OzFx Forex System in PDF
3. OzFx MT4 Template

Happy Trading
OzFx