Forex trading system

Toolbox
#priceactiontrading
● Trendlines
● Levels
○ support/resistance
○ psychological
● Patterns
○ chart
○ candlestick
● Fibonacci

Strategy
#swingtrading
. Trend identification (D1, H4)
. Waiting for pullback
. Looking for reversal setup (H4, H1)
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○ confluence marking a zone of possible reversal

. Waiting for confirmation (H1, M30)

○ market structure to confirm the setup
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. Entry in the direction of the trend
○ upon retest
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○ triggered by candlestick pattern

. Exit based on predefined levels

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Trade selection and management
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– Only planned trades
– No entry unless the market delivers
– No chasing after missed entries
– Entry based on closed candles
– SL ≤ 30 pip
– SL beyond the reference point
– Exit within the set SL/TP
– No re-entry after SL
– No speculation based on currency correlations

Risk management
– 1% risk per trade (later up to 3%)
– R:R minimum 1:2, optimal 1:4
– BE at ~1:1-1.5 (irreversible)
 – Scaling out (10-50% at major levels)
– No scaling in

Psychology
– Rule-based approach
– Trust your system
– Sniper mentality when looking to enter trades, surfer mentality when
managing open trades
– Trade what you see, not what you think or feel
– It’s not who trades more, it’s who makes more

Routine
– On call 12/5
– Looking for potential setups in the morning, waiting for delivery
throughout the day
– No more than 3 trades a day, 7 trades a week
– Preemptive measures before weekends and major economic releases
(no new trades + aiming for BE on open positions)
– Accounting for changing market conditions based on the time of the
day, day of the week
– No pending orders