Description:
Here is a system that I usually use to re-enter the trade in a good trending market.As I mentioned many times on my post on this blog, that I enter the trade thru 15EMA retrace system.So I will explain it to make you understand what I am talking about.The purpose of this system is to effectively catch the "Million Opportunity" that you can grap from the market, also to minimize your loses by the change of the trend.I've been using this system hundred times and give me a good result.
Tool:
15EMA apply to close on H1, to aim a bigger profit you can try it on H4, to aim for a max profit, try it on both.But as a start, H1 chart should be good.This is the simplest system that I've ever encounter with and yet work fine with me.I cannot guarantee it will work for you but it's a worth shoot IMO.In addition, you can use the PA or trendlines as a combination along with this system.
Rule:
Use it once the trend in a clear direction..if you ask me how to determine a trend? then my answer is always a higher time frame.You can see the trend there, Or you can use MA or maybe Trendline.So let's assume that you already know how to determine a trend.
Enter and Out from the market:
Enter the market (again once the trend established) when the price retest the 15EMA.Use the 15EMA as your zone of entering the market.As I mentioned ZONE, it means that the price not have to hit the 15EMA to enter.In some cases, the price maybe 10pips, or 5pips from the 15EMA then resume the trend.As for me, 20 pips from the EMA is not worth a shoot.So please make your own rules.
Out:
How to close the trade? It's a discretionary to me.I use Price action to determine my result.Some of my friend that also use this system use Fibonacci.So dont be panic, as I will give you a first suggestion.Along with the time as you getting more experience to use this, you can improve you own way to close a trade.Here is my suggestion:Once you find a signal, enter the market using 0.5 lot in two order ticket ( so it means total lot will be 1lot).Put the TP for the first ticket=50 pips, the other ticket let open.Why should be 2 ticket? the first ticket is to secure your risk, as the other ticket should be you tool to build a wealth :). As the price move to your favor, when it hit your first tp, move your other order stoploss to BEP and let it run until the price penetrate the 15EMA 50pips.Once the price penetrate the 15EMA for a 50 point, the trend mostly about to change and not worth to wait anymore.
StopLoss extended:
I usually use 50pips stoploss.Since this system should use as a zone (meaning that the price not should be exactly hit the 15EMA to enter), so what happen if I enter the market when the price let say 10 pips from the 15EMA? I usually use my standard as "50 pips from the 15EMA", So it means if I enter a trade 10 pips from the 15EMA, my stoploss will be 65pips.It apply the same when I enter the market which the price already penetrate the 15EMA for 10pips, then my SL should be only 40Pips.
Ok..maybe you can understand without see it on the chart, let get done to it.Some charts for you.Click to enlarge every chart.Enjoy!!
PS:Im not saying that this is a complete system nor a holygrail, I prefer to call it a technique.It's work for me, hope it work for you too.I should call this technique "Upik" technique..to honour a special person who inspire me on a simplify.
Special note:Please combine it with your money management.If 50 pips stoploss already bigger than 3% of your capital, then work on the Lot size, or vice versa, if 50 pips Sl just 1% of your capital and you want to put 3% risk on your trade, you can adjust the Lot size.
Charts:
15EMA apply to close on H1, to aim a bigger profit you can try it on H4, to aim for a max profit, try it on both.But as a start, H1 chart should be good.This is the simplest system that I've ever encounter with and yet work fine with me.I cannot guarantee it will work for you but it's a worth shoot IMO.In addition, you can use the PA or trendlines as a combination along with this system.
Rule:
Use it once the trend in a clear direction..if you ask me how to determine a trend? then my answer is always a higher time frame.You can see the trend there, Or you can use MA or maybe Trendline.So let's assume that you already know how to determine a trend.
Enter and Out from the market:
Enter the market (again once the trend established) when the price retest the 15EMA.Use the 15EMA as your zone of entering the market.As I mentioned ZONE, it means that the price not have to hit the 15EMA to enter.In some cases, the price maybe 10pips, or 5pips from the 15EMA then resume the trend.As for me, 20 pips from the EMA is not worth a shoot.So please make your own rules.
Out:
How to close the trade? It's a discretionary to me.I use Price action to determine my result.Some of my friend that also use this system use Fibonacci.So dont be panic, as I will give you a first suggestion.Along with the time as you getting more experience to use this, you can improve you own way to close a trade.Here is my suggestion:Once you find a signal, enter the market using 0.5 lot in two order ticket ( so it means total lot will be 1lot).Put the TP for the first ticket=50 pips, the other ticket let open.Why should be 2 ticket? the first ticket is to secure your risk, as the other ticket should be you tool to build a wealth :). As the price move to your favor, when it hit your first tp, move your other order stoploss to BEP and let it run until the price penetrate the 15EMA 50pips.Once the price penetrate the 15EMA for a 50 point, the trend mostly about to change and not worth to wait anymore.
StopLoss extended:
I usually use 50pips stoploss.Since this system should use as a zone (meaning that the price not should be exactly hit the 15EMA to enter), so what happen if I enter the market when the price let say 10 pips from the 15EMA? I usually use my standard as "50 pips from the 15EMA", So it means if I enter a trade 10 pips from the 15EMA, my stoploss will be 65pips.It apply the same when I enter the market which the price already penetrate the 15EMA for 10pips, then my SL should be only 40Pips.
Ok..maybe you can understand without see it on the chart, let get done to it.Some charts for you.Click to enlarge every chart.Enjoy!!
PS:Im not saying that this is a complete system nor a holygrail, I prefer to call it a technique.It's work for me, hope it work for you too.I should call this technique "Upik" technique..to honour a special person who inspire me on a simplify.
Special note:Please combine it with your money management.If 50 pips stoploss already bigger than 3% of your capital, then work on the Lot size, or vice versa, if 50 pips Sl just 1% of your capital and you want to put 3% risk on your trade, you can adjust the Lot size.
Charts:
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