Simple Forex System Trading

I recently started to look into the Alligator indicator and found that it could be a fairly simple indicator to use to trade Forex.  First, if you are not familiar with the indicator, here is a good introduction.  I applied the indicator on different currency pairs.  After some observation, I think EUR/JPY and GBP/JPY can yield more profitable trades from this indicator.

I prefer to trade more conservatively meaning that we wait for a trend is set up and the price retraces back to the support or resistance level before we open a position.  Perhaps, it is easier to illustrate the idea on a chart.

So above is an hourly chart between 5/18 and 6/3.  7 trades could take place.  5 of them could be profitable.  2 of them were losses.  Not a bad indicator to use after all.

Another good month for us.  We hit our target, 3 wins, for the month by the 10th.  Here are the details.

5/2    1
5/3    1
5/4    -1
5/5    no trade
5/6    1
5/9    1
=========

Total  +3

An excellent month for us in April.  We hit the target of 3 wins.  6% gain for the month.  Can’t wait till May comes around.

4/1    no trade
4/4    -1
4/5    1
4/6    1
4/7    1
4/8    1
============

Total:  + 3

It’s been volatile in this month’s trading.  There were several double whammies but surprisingly, I ended up with 2 wins.  That’s about 4% gain for the month.  One thing to note though.  These are actual trading results coming from the Oanda account.  I also set up test trades in the Interbank FX demo account.  For the same trades in the Interbank FX demo account, it would be 2 losses.  Therefore, spread does make a big difference.

3/1    1
3/2    -2
3/3    No trade
3/4    1
3/7    0
3/8    -2
3/9    2
3/10    1
3/11    1
===========

Total  + 2

Not a good month for us in February.  We ended up with one loss for the month.  That’s about a 2% loss.

2/2    -1
2/3    0
2/4    0
2/5    1
2/8    1
2/9    -1
2/10    -1
2/11    0
2/12    0
========

Total  -1

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

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!!!