Forex strategies revealed | FSR Forum

Greetings to every trader.

I am a newbie and i study like crazy all those charts and indicators.
I found a good and very simple strategy for profits.

4 Hour Chart
Currency: Any
RSI(6) (so it covers 6 bars, or 24 hours)
When it crosses 51 upwards OR 49 downwards, then buy OR sell.
In 4 hour charts even if it doesnt go to the moon, you can make easily 15-20 pips. Although most of the time the movements are 50-90 pips before retracement in volatile pairs
If you go for the moon insert Bollinger Bands(20) and pray for the bars to reach upper or lower levels (a LOT of pips)
Thats it.
Even if you go for 10 pips with 1 LOT thats 100 dollars. If you do this for 6-8 currencies considering that RSI crosses 50 around 8-15 times a month per pair, then thats a lot of money.

I dont know if its faulty since i am a newbie and perhaps naive.. Any advice ?

Hi Xander,

Each time you get Buy signal from RSI, your chances will be higher if price trades above 50 SMA.

Also for RSI, if you draw lines at 60 and 40, you'll see that when price starts to range, it'll be trading inside 40-60 levels.

Regards,
Edward

Thanks Edward!
SMA(50) is fantastic for filtering positions-although you miss a lot of trades- And 40/60 RSI lines too.
I think 4 hour charts are the best for easy profits. The problem starts when you have the dilema "should i go for easy 10-20 pips, or 60-70 ? "

Does anyone know a good backtest program so i can try it? I am using SAXO Bank's TradeCommander but its awful. It gets into trades with great delays and losses

Thanks
Xander

XANDER CAGE & EDWARD SCCISSOR FX you are absolutly true Amazing !

its very2 Fantastic Strategies !

However if Oanda used 3 Hour Charts its mean the RSI is (8) & the SMA is 67, isn't right Buddy ?

How about the Stop Loss & Take Profit ?

How about Exit Strategy ?

Best Regards;





Manus168

Here's Oanda's 3 Hour Charts Setup :




& here's the Metatrader 4 Hours Chart Setup :




Regards;





Mansu168

manus168 wrote:Regards;





Mansu168

I mean Manus168

How much the ammount of Stop Loss, & where is the place we put our Stop Loss level ?

Thanks;





Manus168

Hi Manus168,

For OANDA's 3 hour charts we could use RSI (8) and SMA is 67, or as well leave thing as is, e.g. RSI 6, SMA 50.

Regarding stops, since we aim for 10-20 pips on average, we have to keep is tight. Basically, when RSI exceeds 60 in an uptrend, the bearish candles don't hesitate to rise (same for bullish candles when RSI goes below 40). For us it means, we can keep the stop pretty tight, I'd put one behind 2 most recent candles. If a candle produces a large move (has a longer than average body - measured by eye), move Stop behind that candle.

The rule of thumb here - don't be greedy. Take the pips you came for, put a trailing stop once got +20 pips or so and let the market offer you more or hit your profit stop.

Regards,
Edward

Just thought we could also use CCI historgam (you've shared earlier ) as a filter instead of earlier suggested 50 SMA.

The rules would be as follows:

CCI in gray - no trading with RSI signals.
CCI in red - take only SEll signals from RSI.
CCI in blue - accordingly only Buy signals from RSI.

Here is the indicator we're talking about:

Very Good Bro; intresting ...

it would be nice & must be tried , i will put the screenshoot soon.


Thanks Ed;





Manus168