Simple Forex System Trading

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.

Found this simple strategy on forexta, so I thought I’d share here.

A good month indeed.  Our goal for the month has reached.  The total number of wins reached 3 today.  So it added another 7% gain to our total.

Great results from the EUR/JPY 30/30 system this month.  We locked in a 6% gain.  So far this year, the system has produced 35% of profit, despite the poor performance in January and February.

The pair seemed to be stuck in between 0.8820 and 0.8780.  I decided to close it and changed the take profit to 0.8795.  The position was closed yesterday.  Made 5 pips minus some interest expense.

Short this pair at 0.8800 during the London session.  The stop loss was set at 0.8850, and take profit at 0.8750.  During the late NY session, the U.S. Dollar dropped sharply and this pair went up to 0.8840 before it retreated.  It’s been around 0.8820 since.  I think I’ll leave the stop loss and take profit unchanged for now.  See what happens tomorrow.  Friday is always interesting and unpredictable.

Closed the trade this morning because I didn’t want to leave the position opened over the weekend.  The stop loss was almost hit during the London session.  The high came at 0.86548, less than 2/10 of a pip shy from the stop loss, 0.8655.  I use Oanda though.  Results can be different by brokers.

Trade was closed this morning at the entry point, 0.8605.  Pretty much breakeven except for a few dollars of interest payment.

The short position was opened yesterday at 0.8605, with take profit and stop loss at 0.8555 and 0.8655.  Over night, the price dropped as low as 0.8578 before it reversed.  Currently, it is at 0.8615 level.  Still waiting.  The divergence still looks fine.