This method is for those who do not have enough time in hand to stare at charts for hours or babysit their trades. Those who are too busy with their day job which they cannot (should not) quit or busy with family affairs … if you are among this category of people, then this system can suit you very well.. The system is very easy and straight forward.
Firstly, open a weekly chart then place a pending order ABOVE and BELOW the CLOSE of the previous week’s CLOSE. You should use a fixed stoploss of 30pips and no profit target. Now, after these pending orders are set, there are only these possible outcomes:
1. Buy position get triggered and keep going in favor (100s of pips)
2. Buy position get triggered but later retraces and hit stoploss (-30 pips)
3. Sell position get triggered and keep going in favor (100s of pips)
4. Sell position get triggered but later retraces and hit stoploss (-30 pips)
5. Whipsaw in the market causes both position to get triggered and hit their stoplosses causing a maximum loss of -60 pips (-60 pips)
6. Buy get triggered, then hit SL, then Sell get triggered and run in profit (guaranteed to cover the -30 pips lost earlier)
7. Sell get triggered, then hit SL, then Buyget triggered and run in profit (guaranteed to cover the -30 pips lost earlier)
These are the only outcomes that can happen, however, most of the time, you will see the weekly trend re-establishes itself and get control of the direction the pair is heading. This is why we do not use any profit target (takeprofit/tp) and we keep the trades running till the END OF THE WEEK… we will close the trades only 30 minutes before the brokers shut down their platform on Friday night. In this way, if the weekly trend is bullish, and the buy gets triggered, the profit potential can be huge, compared to the maximum loss (-60 pips) that our account can suffer. Therefore, if we compare the risk/reward ratio of this method, we can safely conclude that this system can be a potential wealth builder.
You need to use this system on volatile pairs which are the GBPUSD, USDCHF, GBPJPY, EURUSD etc…
The most important part to make this system successful enough is to use a good money management technique alongside so that, you control your risk in a way that is healthy to your account… no matter how many lots you are using per trade, just make sure that you account is prepared to handle -60 pip loss for a few weeks consecutively and adjust your lots according to this scenario. Of course, such a scenario is very unlike to happen and most of the time, you will close your trades in profit.
The best part in this system is that it does not need any complex technical analysis or tons of charting time. It is a ‘set and forget’ type system and just need less than 10 minutes of your time each Monday of the week to set the trades, and each Friday to close the trades. As the label says on the tin… you set it and forget about it. You can close your platforms, shutdown your computer and turn all back on just on friday to close the trades. This system should really be stress free as you would not be exposed to the ups and downs of the market rolling in front of your eyes every hour and thinking ‘my SL is going to get hit.. my SL going to get hit..’ .. NO, you do not need to think about these… just set it and forget about it.
One thing which this system with definitely prevent you from doing is over-trading.. YEAH! Over Trading the market is a real kill, both for your health and for your balance as well. Keep it simple and keep it coming. As with any system, make sure you practice this on a demo account for a while. This is a 100% mechanical system and does not need any analysis etc, so it will not be a problem practicing on a few pairs as well. After some time, then you can decide whether this system is good for you to trade on a live account or not.
Would like to hear back comments and suggestions… Good Luck.