My Trading System

After spending thousands on forex books and courses (I went as far as Bahrain), I think I now have a system that works for me. I believe any system needs to match the personality of the trader concerned. I have tried some systems claimed by other people to have worked for them but I failed miserably. I conclude that you must develop your own system by combining the tools already available to everybody.

During the course of my short trading experience, I started trading with real money on February 15th, 2008, I have arrived at a conclusion that any system that works must be simple enough to employ. I have seen people using charts full with indicators that looked too difficult to arrive at a quick and correct decision. Of course, “correct” is very subjective here.

In my system, I use EMA 5 (close) and EMA 6 (open) for my entries. I use Commodity Channel Index (CCI) for confirmation. These are the tools that I use. When market is going sideways I used “the wave”, EMA 34 using all 3 parameters (close, high and low) taught by Raghee Horner in her book, Thirty Days of Forex Trading. The bulk of my decision lies with the candles themselves. I spent most of the time looking at the candle sticks searching for reversal candles. When I have found the most likely candidates, confirmed by EMAs 5 & 6 and CCI, I pull the trigger.

First, I look at the Day chart. If the price is going down then I will check either the 1H or 30M or even 15M chart for entry. If the slower EMA 5 crosses EMA 6 downward, confirmed by CCI, it is time to enter short. If the EMAs cross back, it is time to exit. I normally exit half of my position before this. For a bearish Day candle, I will only enter short position.

As for the “wave”, I use it strictly for sideways market when the 3 EMA34s are at 3 o’clock direction. A breakout upward will give me a long entry and vice versa. Again, the CCI is my confirming indicator.

Of course, I had some losses with these tools too but I am happy to report that overall, the trades have been profitable. Yesterday, I managed to capture 103 pips in EU and UJ trades simply employing this system that I called WAVEMACCI.