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Old 12-02-2009, 23:17
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AshFX AshFX is offline
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Default The Super Simple System

This system is designed for new traders getting their feet wet into trading FX.

So, what is the Super Simple System (SSS)?

Well, let me tell you.

Open up any hourly chart on Metatrader. Say, Eur/Usd, on H1.

Then on the left hand side, you'll see a box called "Navigator". Click on the tab called "Indicators", and you'll see a list of different indicators. These indicators are used to help us make decisions.

So here, we want to choose, the "Awesome Oscillator" indicator. Click and drag that onto the actual chart. You'll see it come up immediately as a separate window at the bottom of your chart.

Then we want to place two "Moving Average" (MA) indicators. Moving averages are lines you'll see on the actual chart itself. So, click and drag that onto your Eur/Usd chart. You'll see a few parameters here. Click on reset (this makes everything back it's default settings). Then leave everything as it is, except change the "MA Method" to "Exponential". Click OK.

Then we want another Moving Average Indicator. So again, drag and drop it on to your chart, but this time, we want to change a few things more. Firstly change the "period" to 7. Then, change the MA method to "exponential". Finally, change the colour to something else, say yellow. (This will help us distinguish between the different MA lines).

This is what you should be seeing:




That's it. All your indicators are now set up. You're ready to begin trading!

Ok, so how do we know when to enter into a long (buy) or short (sell)?

Simple, you follow the system's rules. Following the rules of a system is imperative, it helps traders keep their discipline, and helps eliminate the two biggest emotional pitfalls in trading: greed and fear. Get too greedy and you'll lose any profits you might have made. Get too scared, and you might exit a trade for a loss, which could have ended up a profitable, had you stuck to the rules.


The SSS Rules

THE ENTRY:

1. Look for a cross of the MAs. For a buy, the yellow MA must cross above the red MA. For a sell, the yellow MA must cross past down the red MA.

2. Then, look for a green Awesome indicator for a buy. And a red Awesome indicator for a sell.

Only once both of the above conditions have been met, can we enter a trade. We are not allowed to enter if the candle is still being formed. We have to wait till the end of the hour, i.e. till the candlestick has fully closed.


THE EXIT:

Place a 30 pip Take Profit and a 30 pip Stop Loss. This means, if price moves in your favour by 30 pips, your trade will automatically end (with a profit). And likewise, if the price goes against you by 30 pips, your trade will automatically end (with a loss). If neither the TP nor the SL are hit, yet the Awesome has turned the opposite colour, then exit. Again, wait till the candle has fully closed.

____________________________________________


That's the rules. Feel free to test the system, and post questions, findings, results, experiences, life history, etc... on the forum.

I'll also be giving examples of trades entered/exited a little later on.

Ash
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