Monday, August 11, 2008

Easy GBP/USD Forex Trading System



Forex trading System

At 5PM EST:

1- Close out any open positions

2- Cancel any unexecuted orders

3- Set an Entry Buy order 1 forex pip above previous high

4- Set an Entry Sell order 1 pip below previous low

5- Set stops and limits using the following guidelines: 50 pip profit target, 25 pip stoploss if ADR ABOVE 200 40 pip profit target, 20 stoploss if ADR BETWEEN 175 and 199 30 pip forex profit target, 15 stoploss if ADR BELOW 175

Do no forex trade if ADR is below 100

How to calculate ADR (Average Daily Range)

It may be easiest to use an excel spread sheet for this.
Take the H/L for each day, for the past 14 days.
For each day list the amount of pip's between the H and L
Example. H = 1.5623 L = 1.5586
5623 – 5486 = 137

Add the total amount of pip's for all 14 days and divide it by 14.
This will give you the average daily range.

Average pips: +250 – 300 /month.
Max drawdown since 2004:175 pips.

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