Simple Forex System Trading

The two pairs I trade with this method are EUR/GBP and EUR/JPY.

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EUR/JPY 30/30 Breakout System

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Time Zone Used: GMT

Reference Price: Previous High and Low

(Non day light saving: between 4 GMT and 6 GMT)

(Day light saving: between 3 GMT and 5 GMT)

Buy Stop: Previous High + 5 pips

Buy Take Profit: 30 pips

Buy Stop Loss: 30 pips

Sell Stop: Previous Low - 5 pips

Sell Take Profit: 30 pips

Sell Stop Loss: 30 pips

Risk: 2% to 3% of win / loss per trade

Trading Hours: 7:00 GMT to 13:00 GMT (Day light saving: 6:00 GMT to 12:00 GMT)

Orders that are not filled are cancelled at 13:00 GMT. (12:00 GMT day light saving)

All open orders are closed at 13:00 GMT. (12:00 GMT day light saving)

For example:

Enhancement:

4/1/2008: I currently do not trade this method as the pattern of this pair has changed. I am writing scripts to test it out in demo.

5/5/2008: I am using this method again but with some minor changes. All rules above remain the same, but adding the following:

Trading dates: Only trade from the 1^st to the 14^th of each month.

Trading limit: Between the 1^st and the 14^th, whenever the total number of wins reaches 3, trading stops. If it never reaches 3, trading stops after the 14^th regardless.

Example 1:

5/1: 1 win

5/2: 2 loss

5/3: 1 win

5/4: 2 wins

5/5: 1 win

Trading stops on 5/5 because the total number of wins reaches 3. Trading will resume on the first of the following month.

Example 2:

7/1: 1 loss

7/2: 1 loss

……….

7/14: 1 win

Assuming between 7/1 and 7/14, the total number of wins never reaches 3. Regardless of the results, trading will stop for the month. It will resume on the first of the following month.

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EUR/GBP 7/17 System
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Time Zone Used: GMT

Reference Price: Open Price at 23:00 GMT

Buy Limit: Reference Price - (7 to 10) pips *updated on 4/1/2008

Buy Take Profit: 7 pips

Buy Stop Loss: 17 pips

Sell Limit: Reference Price + (7 to 10) pips * updated on 4/1/2008

Sell Take Profit: 7 pipsSell Stop Loss: 17 pips

Example:

Trading Time: 23:00 GMT to 7:00 GMT (or 9 GMT)
*I normally don’t trade on Mondays as the market just opens.

All open positions are closed at 7:00 GMT (or 9 GMT).