You should not take all the trade setups you find. You should locate and analyze them, and choose the best and strongest one, and forget about the rest. The other thing is, this trading system works on all time frames. I just check the charts once every day, and I am done.

This is wrong. You will only spend more time and energy and you can wipe out your account sooner than later. So avoid the shorter time frames. I use this system on the weekly and monthly time frames as well as the daily. But from next week I will show you the weekly and monthly setups also. Never take a position without setting a reasonable stop loss, the way I have above.

If you trade without stop loss, you will wipe out your account, whether you are a novice trader or you have been trading for one million years. This is the only thing I can guarantee. Also, this trading system is a set and forget system. Just check the charts at the close of the daily candlesticks, take your positions, set the stop loss and target, and then go and come back the next day. Almost all trading systems make money, if we master them. Simpler trading systems are easier to master, because they are easier to understand and follow.

They also make money. They can even make more money than the complicated systems. So, try to choose a simple and easy to understand system, learn it, and then practice to master it. You just ruin the trading system if you do this.

The most important thing that prevents novice traders from making money, is over-trading, and, greed. You mainly lose because of your greed. Your greed pushes you to make more money, but it causes you to lose more money and waste a lot of time.

So, you and what you have in you, are your biggest enemies. The trading system is your friend, if you follow it properly. Market is your friend if you follow it. Just learn a simple trading system and its rules. Learn it as easy as it is. Take your position in your demo account, set the stop loss and target as your trading system says. Repeat this until you master the trading system. Repeat your success with your demo account at least for 6 consecutive months.

I mean you should become profitable for 6 consecutive months. Then open a live account, as small as possible, and repeat the same thing with this account for 6 more months at least. When your live account is too small, you can treat it like your demo account, and so, you will not have emotions. So, this live trading is the continuation of your demo trading. It is to help you master your trading system. It is not to make money for you. It helps you trade without any emotions, specially greed.

Forget about money. Your job is taking the too strong setups only. If you learn how to take the too strong setups properly, then money comes by itself. You will become a great trader, if you follow the track I showed you above, otherwise you will not get anywhere, even if you practice and learn for years. I have seen so many traders who cannot make money even after 20 years of trading, because they are still greedy.

They know a lot. Teach your trading system to a 6 years old child, and ask him to trade. Tell him it is just a computer game. He will make profit.

But teach it to a 50 years old man and tell him that the system is about making money and can make him a millionaire. Come back 10 years later, and you will see that he is still losing and has not become profitable yet.

Because you taught him a system while you stimulated his greed at the same time. Unfortunately, it is only in trading that it is like that. In the other businesses, the harder you work, the more money you make.

Greed can cause you to lose money in the other businesses too, but in most cases it causes you to make more money. In trading, you will make more money when you are less greedy, or at least when you can control your greed and lower it to an acceptable level. My goal is to make you take the strongest setups only, and avoid the weak and bad ones. many of you ask whether I manage my positions, and for example when an opposite reversal setup forms, I close my positions before it hits my stop loss.

The answer is no. You itch to check the charts after you enter the markets, usually when you take a big risk, and you lose a lot if the price hits your stop loss. So, please be careful about the risk you take. The other question that you ask is that, suppose we are short based on a trade setup formed on the monthly chart.

But, a long trade setup forms on the daily chart while we are still short. Do we take the long trade setup while we are already short, or, do we close our short position and go long?

Of course, a lot of things can happen when you are in based on the monthly chart, because you should hold your positions for such a long time.

Then, it is possible that the market becomes slow and goes to range, and then, it forms several reversal setups on the shorter time frames. So, you can take them, even if they are against your monthly time frame position. That makes sense to enter the market, make some money and then close the positions, while you are still holding your monthly position.

I don't believe in luck. I believe in sweat. The more you sweat, the luckier you get. Hello luckscout. Thanks for great article. I have question. Thanks and sory for my english. Hallo Mr. Maybe you have already posted your promise on the Luckscout website. Can you provide the link. hi this site has been off for more than 5 years. they changed their activity from FX to trading gold. This website is a educational site. We have never been trading gold. We teach people how to make money through different opportunities.

Hi sir tell me which forex pairs is most likely to trade with this system and can i also trade Nasdaq with this system. Skip to content This is Kamel. Make sure to read this post to remember how I locate the trade setups and set the stop loss and target orders: I Trade the Daily Chart, But I Am a Day Trader I am going to show you the same simple Forex trading system here. You just need to add two custom indicators to your MT4 platform: Before you read the rest of this article, submit your email, not to miss the messages that nobody can afford to miss:.

By The LuckScout Team I don't believe in luck. View all of The LuckScout Team 's posts. Notify of. new follow-up comments new replies to my comments. Newest Oldest Most Voted. You must be able to come up with your own definition for popular concepts and trade accordingly. Apart from market conditions, you might employ other techniques that require a recognition criterion. Support and resistance levels, chart patterns, and candlestick formations are all examples that you must address in a similar fashion.

You might use price action techniques such as chart patterns, candlestick formations, or trendlines. You might rely on indicators or you might cut out technical analysis altogether and look at the performance of different economies. Successful trading is more about the overall trading plan and your ability to deal with psychological challenges.

Trading trends are said to be the best way to approach forex. In other words, even if you found your techniques in a YouTube video, you must understand the logic behind them. If this is something in which you are interested, you can simply take the signals he describes and put them into your strategy. While you can borrow ideas from anyone, you must understand the underlying logic and the purpose of each element.

In this situation, you want to capture market reversals. In an uptrend, Bearish Engulfing and Bearish Pin Bar candlestick patterns are both indicating that sellers overpowered buyers during the period that the candle represents.

When these candles appear at a resistance level, where the price reversed multiple times in the past, you have a higher likelihood of catching a market reversal. Entering on a pending order further increases your chances of a profitable trade because you wait for the market to confirm that a contra-trend move is, indeed, on the way.

You see, trading signals are not some random hocus pocus. If you put something in your strategy, there must be logic to it.

When the strategy is ready, you can move on to backtesting to see if your idea works in reality. After all, this is what determines whether you end up with a profit or a loss. This also means that there are two kinds of exits: one to realize a profit and one to cut off a loss. We talk about this in detail when discussing how much money you need to trade forex. Once you have your risk on the trade, you can move on to identifying an appropriate profit target.

Depending on your strategy, there are many ways you can come up with target levels. For example, Fibonacci ratios, channels, and support and resistance levels are all widely used to identify appropriate stop and profit levels. Institutively, the distance between the entry price and take profit order is the reward you can gain on the trade.

Comparing this with the risk, which we defined as the distance between the stop loss and entry price, yields the risk to reward ratio RR. The risk to reward ratio measures your potential reward for every dollar you risk. In general, when you are a scalper or day trader, you will prefer a smaller RR. On the other hand, when you are a position trader, you will want to see a large RR.

Swing trading systems can fall into both categories. As an alternative to looking for trades with a certain RR ratio, a perhaps even better approach is to have different exit strategies depending on the RR.

For example, if the profit target is close, you can simply exit the trade once the market gets there. However, if the profit target is far, you might want to scale out of your trade or move your stop into breakeven at a certain point.

The next stage is to start backtesting and make improvements. We usually backtest on three years of historical market data on at least three different currency pairs.

Then we analyze the results and refine the trading signals that produce the most losing trades. We look for insights such as the situations in which most of the losing trades occurred and how we could mitigate or avoid those situations in the future.

At the same time, we carefully investigate our winners and modify the strategy to better capture those circumstances that led to winning trades. If you do the same thing, you will eventually have a forex trading strategy that works. Do you struggle with following popular trading techniques and getting no results? Instead, you need a simple system that you like and trust. This post will help you figure out how to develop a forex trading strategy that works. What Is a Forex Trading Strategy? Trading Styles — What Are They and How to Choose the Best One for You?

The Ultimate Guide to Creating a Forex Trading Plan Step by Step. Want the inside scoop? JOIN THE COMMUNITY. Subscribe to get Forex education materials delivered to your inbox once a week.

How to Build Your own Forex Trading System. You should be aware that forex trading is a game of odds and probability. To get the expected result, you must keep your method consistent. Trading randomly will only cancel out your odds of success. To succeed in trading, you need to have a trading system. While you can buy a trading system, it is preferable to develop one by yourself; you can backtest and forward-test it as you deem fit.

You will be confident with it because you know its strengths and weaknesses. How I Became a Consistently Profitable Trader. What is a Forex Trading System? A Forex trading system is a combination of your trading style, trading strategy, and trading plan. It is your unique method of analyzing the market, identifying setups, trading the setups, and managing your trades.

A trading system can be a manual system — you analyze, place trades and manage them yourself — or an automated system where a trading robot does all the work. Who can build a forex trading system? With a good knowledge of forex trading , you can develop a manual trading system. However, to automate your system, you must be good at coding. Why you need a trading system? How you can build a manual technical trading system. With the dollar amount of your account risk, you can calculate your position size for any stop loss value.

In conclusion, building your own forex trading system will make you trade it with more confidence. Besides, you will understand the market better building your own. All you need is to have your live account verified! Of course, you need to open a live account USD30 from each Forex Broker Below. Both Forex Brokers have excellent rating! Broker 1. Broker 2. Save my name, email, and website in this browser for the next time I comment. Share Tweet Share Email Whatsapp Print. Broker 1 Broker 2 We use both of these brokers and proudly promote them!

NOTE: Not all countries qualify for these bonuses. Terms and Condition Applies. Other Analysis Today. Learn and SHARE the Knowledge! This might also interest you Click Here to Leave a Comment Below 0 comments. Leave a Reply: Save my name, email, and website in this browser for the next time I comment.

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However, to remember the list of considerations before placing a trade is a challenge MichaelT says:. Hollow candles with no lower shadows are used to signal a strong uptrend, while filled candles with no higher shadow are used to identify a strong downtrend. Arguably, we could have figured out a more user-friendly name for this section, but this is what happens when you spend too much time with charts and data 😂. Use these indicators to confirm a high probability of successful trades. The above setups I showed you, are almost continuation setups. If you are a trader that likes to sit and watch your trading screens all day long then trading the lower timeframes should be good for you.

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