Simple Forex System Trading

I have been using CCI to trade the euro pound pair for quite some time.  Because this pair is not very volatile and tends to retrace reasonably after decent rise or drop, the commodity channel indicator works well with this pair.  I also found that it is even more accurate during the post-US and pre-European sessions.  Here is the strategy:

Hours:  20:00 GMT to 6 GMT

Time Frame:  1 hour chart is used

Buy Condition:  Place limit buy a few pips (0 to 5) higher than the recent low after CCI breaks above -100. 

For example, at the 21:00 GMT hourly bar, low was 0,7900, CCI was -125.  At 22:00 GMT hourly bar, low was 0,7904, CCI was -103.  At 23:00 GMT hourly bar, low was 0.7910, CCI was -87.  So, we place a limit buy anywhere between 0.7900 and .7905 at your choice at the open of 00:00 GMT.  Remember.  This order is only valid for an hour.  If not filled during the hour, cancel it.

Sell Condition:  Place limit sell a few pips (0 to 5) lower than the recent high after CCI breaks below 100. 

For example, at the 1:00 GMT hourly bar, high was .7950, CCI was 132.  At 2:00 GMT hourly bar, high was 0.7944, CCI was 96.  So we place a limit sell at the open of 3:00 GMT.  Set the limit sell price somewhere between 0.7950 and 0.7945 at your choice.  The order is only valid for an hours.  If not filled within the hour, cancel it.

Take Profit:  10 pips

Stop Loss:  15 pips

Trailing Stop:  If you like to put a trailing stop to protect your profit, feel free to do so.  I tend to do it when I gain 6 or 7 pips or so, and I move the stop to the break-even level.

No-No rule:  Do not open new buy or sell after 6:00 GMT.

What to do if buy or sell order still open after 6:00 GMT? 

You can close it or you can just leave it to hit the pre-set take profit or stop loss.

Yesterday was a good day as I raked in 10 pips.

In the image below, the CCI broke above -100 at the 23:00 GMT bar (1), so I placed a limit buy at 0.7937 at the open of the 00:00 GMT bar (2).  In Oanda, I could also set to have the order expired in an hour.  Therefore, it would automatically expire at 01:00 GMT if not filled.  With the same ticket, I set the take profit at 0.7947 and stop loss at 0.7922.

The buy order was filled at 0:55 GMT and closed with a profit at 2:00 GMT.

Stumbled upon this video on Fxstreet.  Very informative and great training about Ichimoku.

I didn’t realize that Ichimoku also had its own Net TV show.  This is insane.

We raked in 30 pips today with the euro yen 30/30 breakout system.  The stop buy order was filled at 161.96.  About two hours later, the take-profit order was filled at 162.26.  It was a good day.

We broke even today with the euro yen 30/30 breakout system.  The sell stop order was filled at 161.94; however, the market was very quiet throughout the European session.  I decided to move the take-profit limit order from 161.64 to 161.94 at around 14:00 GMT.  The order was soon filled.

The euro yen 30/30 breakout system was unable to bring in profit today.  We lost 30 pips for the day.  The sell stop was filled at 161.43, but the low only reached 161.28 before the price turned around and hit the stop loss.  That was the 30 pips loss there.  And then the buy stop was filled at 162.17.  I moved the stop loss from 161.87 to break-even, 162.17, when price hit 162.30.  However, it went as high as 162.35 before it went south and we were stopped out.  In this trade, we were break-even.

Stumbled upon this website, pipholic.com, while looking for other breakout trading systems to read about.  The author of this daily forex signal primarily trades British pound.  The strategy is a combination of the pivot, breakout, and support and resistance levels.  This trading system is similar to another pivot breakout system on Daily20Pip.com.  Check out both strategies.

From the author’s website: 

In general, the system is based on many basic trading concept: Pivot Lines, The London Breakout concept and support and resistance. The big ben strategy explains very well how The London Breakout concept could be very useful for trading the GBP/USD. Of course I have additionally put my own approach.

For a simple start, I believe that many of you - especially who have been following my free forex signals since the beginning- have recognized these simple formula:

1. Define the daily pivot
2. Place buy order at 20 or 40 pips above the pivot, or
3. Place sell order at 20 or 40 pips above the pivot
4. start to place the order at about 05.00 GMT

I was doing some research on Ichimoku and stumbled on this site, which has a great post on the Ichimoku cloud on US dollar / Yen.  However, it is way too advanced and complex for me.  I do respect the author’s analysis and research, but I’d like to keep my trading simple.  It is a good read none the less.

Another great day for the euro yen breakout 30/30 system.  A stop buy was placed at 159.49 at 7 GMT.  Our take profit and stop loss were set at 159.79 and 159.19 respectively.  Another 30 pips were pocketed today.