Simple Forex System Trading

If it passes, I think I’ll move my accounts to UK then.  10 to 1 leverage seems absurd.

More details @ fxstreet blog

This month, we ended up with 2 wins.  One short of the targeted 3 wins we’d like to have each month.  Still, it’s not too bad by adding another 3.6% gain to the total.

The trading results look as follows:

Account:  Oanda

1/4:  +1

1/5:  No trade

1/6:  0

1/7:  -1

1/8:  0

1/11:  +1

1/12:  +1

1/13:  -1

1/14:  +1

Found another breakout system that based on one bar in a 4 hour chart.  The author uses this method to trade GBP/JPY.  Looks like the result is not bad at all.

So basically, in a 4 hour chart:

• Take the high and low of the second bar of the day. (GMT)
• Calculate number of pips between the high and the low.  (High - Low = Channel; e.g. 160.00 - 158.50 = 1.50 –> 150 pips)
• If channel is more than 200 pips, no trade for the day.
• If channel is less than 200 pips, place buy 10 pips above the high & sell 10 pips below the low.
• Take Profit = buy order + channel (e.g. Buy @ 160.10, channel = 150 pips, Take Profit = 160.10 + 1.5 = 161.60)
• Stop Loss = buy order - channel (e.g. Buy @ 160.10, channel = 150 pips, Stop Loss = 160.10 - 1.5 = 158.60  )

Read more about this strategy @ forexfactory

Found this very nice article on how to use MACD in the daily Forex trading.  Particularly, I love the MACD divergence & convergence strategies sections.  Personally, I like to use Awesome Oscillator divergence on the one-hour chart to trade Forex but many traders prefer MACD.

Read the MACD trading strategy article @ forexoma

Mission accomplished.  After my post on the 8th, we had two consecutive wins and hit the magic 3 target.  That means we are done for December.  Another 6% gain added to the account.  It couldn’t be merrier than this, could it? 

So far we are + 1 for the month of December.  There are 3 more trading days left for the month.  Hopefully, we can get two more wins and hit our target of 3 wins.

Between January and November, we are up + 12 trades.  It is around 30% gain so far.  Although it’s not as good as last year or the years prior, 30% is not a bad return for an investment / speculation.

Fingers crossed.  Hope for two more wins!!!

Well, silly me was doing some experiment on the EUR/JPY 30/30 system in November; therefore, I ended up break-even.  If I had just followed the system rules without experimenting, I could have had 3 wins - another 6% gain.  Oy vey.

I am a long time customer of InterbankFX and Oanda.  I recently received an email from InterbankFX regarding the margin rules changes.

In compliance with the upcoming NFA regulations, we will no longer be offering accounts with more than 100:1 leverage.  We are also required to alter the leverage levels on our existing accounts.   We want our customers to be aware of these new requirements to determine in advance how this may affect their trading plans and decisions.

As of market open on November 29, 2009, all currency pairs will have a maximum leverage of 100:1, with the exception of the USD/SGD and the USD/ZAR which will have a maximum leverage of 25:1.

I don’t think it affects my accounts in Oanda because it is using 2% margin.

The new rules probably only affect the US Forex brokers if they are registered with NFA.