Entries
• The first step in the strategy is to draw a channel between the highest high and the lowest low of the last 9 bars
• The second step is to draw Fibonacci Retracement lines using those two levels
• We should enter a long trade when the bar closes above the 61.8% retracement level
• We only trade in the direction of the carry.
• The first step in the strategy is to draw a channel between the highest high and the lowest low of the last 9 bars
• The second step is to draw Fibonacci Retracement lines using those two levels
• We should enter a long trade when the bar closes above the 61.8% retracement level
• We only trade in the direction of the carry.
Exits
• Sell Stop: We should close our trades at 3 times the value of the average true range.
• Profit Target: Take profits at entry price plus 3 times the average true range
• We chose to use the same value both for risk and reward to avoid any statistical bias in any direction. For example, if our stop id much closer than our target, odds are that we are going to have more losing trades than winning trades
• Sell Stop: We should close our trades at 3 times the value of the average true range.
• Profit Target: Take profits at entry price plus 3 times the average true range
• We chose to use the same value both for risk and reward to avoid any statistical bias in any direction. For example, if our stop id much closer than our target, odds are that we are going to have more losing trades than winning trades
Time Frame Traded
In the pictures FX Carry Range trading system in action.
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important information.
Long Entry Rules
- The closing price is stay above the EMA 16
- Laguerre cuts above 0.8 level
Stop loss
Place your stop loss around 30pips from the entry point.
Exit rules
- Take profit half of your position when price has gone above 20 pips
The closing price is stay below the EMA 16
- The EMA 16 cuts or stays below EMA 48
- Laguerre cuts below 0.2 level
Stop loss
Place your stop loss around 30pips from the entry point.
Exit rules
- Take profit half of your position when price has gone below 20 pips
EMA 48 on 5 minute chart
In the pictures Forex Hitman trading system in action.
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period EMA’s provide us with strong support and resistance levels which we will use for entry signals.
Timing is also everything with this system. The best times to trade this system are after
this system when the Asian market is open, as you won’t have as much success with it.
Our whole point here is to ride out the short term trends while the trend is making
higher highs (and lower lows), and to constantly squeeze 10 – 15 pips out of a trade
while only risking five. If you follow our entry rules, this system does work well. The
basic idea shown on a chart:
The rules for this system are quite simple. To lay them out for you, we:
will be making higher highs (in an uptrend), or lower lows (in a
it is slanting up or down, the stronger the trend is.
trend it is your sell signal.
4. For a stop use 5 pips (plus the spread).
5. Set a take profit at 10 pips (plus the spread).
Let’s look at this on a chart to add some clarity:
In the picture 5 min scalping system in action.
Looking at the above chart, let’s simply walk through the steps. I’ve listed 7 entry points.
Of those seven, only 4 are valid, but we’ll get to that. Let’s walk through the steps we
take to take advantage of the short term trend:
Trend Determination: We have determined we are making higher highs, and
the EMA 50 is pointing up. This tells us we are in an uptrend.
We set a five pip stop and buy.
We set a five pip stop and buy.
We set a five pip stop and buy.
We set a five pip stop and buy.
#5 Signal – Price did not make a higher high – this could indicate the trend is
changing. We don’t take this trade.
#6 Signal – Price did not make a higher high – again we don’t take this trade.
#7 Signal – Price did make a higher high, but the EMA 50 has turned sideways,
we do not take this trade.
Let’s look at this system whole system in reverse to have an example of short trades
with
the 5 minute system. Looking at the chart below we first determine that we are in a
downtrend, and then we have 5 entry signals on this chart.
In this case all of the entry signals are valid. The #3 trade would have stopped out, but
This system is simple and if used the way we have laid it out it can be extremely
profitable. We aren’t quite done yet though, there are a ways to add to the profitability of
this system.
Letting Profits Run
I do suggest you trade the system as I laid it out in the previous section while you get
used to it. But, as a variant, after you gain some experience you can let your profits run
to earn more from the market.
Using this method we won’t be making multiple trades, instead we just take the first
signal, set our stop to breakeven once we are 10 pips ahead, and then let it run. Using
the same example from the previous section:
With this method we take the first entry signal once we’ve determined that we are in an
uptrend/downtrend. Looking at the chart above the bar hits the midway point between
the EMA 10 and EMA 21. We enter the trade.
We still use our 5pip + spread stop, but this time we don’t set a take profit. Instead we
wait until the trade moves 10 pips in our favor and then set our stop to the breakeven
point. From there just let the trade ride.
To exit the trade, there are two strategies that you can use.
1. Wait until the EMA 50 begins to flatten out as shown in the screenshot on the
previous page. With this method we would have earned 50 pips compared to the
35 we would have earned from our previous example.
2. Wait until the EMA 50 actually turns up – with this particular trade we would
have held if for most of the day and earned 100 pips.
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