Forex-ology simplified – 5 unorthodox steps to a profitable Forex strategy

Firstly, I would like to emphasize that my trading system is not a holy grail and anyone can use it successfully if it complies with the rules of the trading system. I have been trading for years and this is one of my forex trading strategies that have helped me to earn profits consistently.

I have always maintained my simple trading systems because the simple system works in this ever-changing brutal foreign exchange market. Surprised by this? Did you think a successful trading system should be complex and difficult to use? The difference from the foreign exchange market depends on how effectively the trader himself uses the trading system, not on how good the trading system is.

So now I'm going to come up with a forex strategy that I use very often to make consistent profits from the market. After reading it, you might think that it's actually such a simple system. But as I said earlier, trade should be simple, don't complicate it. The following are the steps of my forex trading strategy:

Step 1: Look at the main trend using a daily chart. A glance from left to right on the chart should tell you that it is downward or upward.

Step 2: Once I know what the main trend of forex is, I will go to the Forex Factory website to check for news releases. If there is news coming after 2 hours, I will not even go to step 3 to look for trading alerts as there is a high probability of whips.

Step 3: If there is no news, I will implement my currency trading plan. For example, if the underlying trend is upward, I will only look for buy signals generated by my forex indicators, conversely, if the main trend is downward.

Step 4: Now this is the most decisive stage and my trading decision lies here. I use the intersection of 4 EMA (Exponentially Moving Average) and 23 EMA to determine the buy and sell signals on a 30 minute chart. Other metrics are included, weekly rotation, Stochastic and MACD (Moving Average Convergence Divergence) should also follow the trend and may not look even. I filter whips by trading only in high liquidity sessions and checking that the trend is the same using a 4 hour chart. That is all!

Step 5: The trade is set to a solid stop loss of about 35 pips until I have 2 methods of targeting profit. One uses a healthy risk-to-pay ratio of at least 1: 2. The second is to use daily support and resistance.

This is my successful currency trading system. Is it just? Of course, risk management, money management, and psychology must be combined in this trading system to work properly.