Forex-Algi Simplified – 5 Unconventional Steps to a Winning Forex Strategy

First of all, I would like to emphasize that my trading system is not a holy grail and anyone can use it successfully if they follow the rules of the trading system. I have been trading for many years and this is one of my forex trading strategies that has helped me to consistently gain.

I have always kept my trading systems simple because it is a simple system that works in this ever-changing brutal currency market. Surprised? Do you think that a successful trading system should be sophisticated and difficult to use? Doing well from the Forex market depends on how effectively the trader uses the trading system himself and how good the trading system is.

So now I will publish a forex strategy that I often use to gain consistency from the market. After you read it, you may think that it is actually a simple system. But as I said before, trading should be easy, don’t complicate it. Here are the steps in my Forex Day Trading Strategy:

Step 1: See the main trends using the daily chart. The first look from left to right of the chart will tell you whether it is a downward trend or an upward trend.

Step 2: After finding out what the major Forex trends are, I will go to the Forex Factory website to publish any news. If there is news coming in 2 hours, I will not go to step 3 to find the trading signal because there is a high probability of whips.

Step 3: If there is no news, I will use my forex trading plan. For example, if the key trend is up, I will only look for buy signals generated from my Forex indicators, if the key trend is down.

Step 4: Now this is the most important stage and here is my trading decision. I use crossings of 4 EMA (Exponential Moving Average) and 23 EMA to define buy and sell signals on a 30 minute chart. Other indicators are involved, the weekly pivot, stochastic and MACD (Moving Average Convergence Divergence) must follow the trend and not see flats. I only filter whips by trading during high liquidity sessions and using 4 hour charts to check if the trend is the same. That’s it!

Step 5: The trade is set at a tight stop loss of about 35 pips while I have 2 ways to target profit. One is using a healthy risk to reward at least a 1: 2 ratio. The second is using daily support and resistance.

This is my successful Forex trading system. Isn’t it easy? Of course risk management, money management and psychology should be integrated in this trading system so that it works properly.