Here's the trading setup, entry rules, stop loss rules, and exit rules of automated forex trading systems. I truly believe it can potentially generate much more than 10 pips a day but I'm sure like me, you're probably sick of those unbelievable claims from the self-proclaimed forex 'gurus' You know, promises of 1000 pips a day trillions of dollars overnight ok.
Enough of my rants. Let's get started right away: Time frame: 1-hour. In automated forex trading system, we use 3 indicators:
1. 5-period Exponential Moving Average (EMA 5) applied to the Close.
2. 12-period Exponential Moving Average (EMA 12) applied to the Close.
3. 21-period RSI (RSI 21)
Entry Rules for Long Trades:
It's simple. We enter a long trade when EMA 5 crosses EMA 12 to the upside and our RSI 21 > 50.
Entry Rules for Short Trades:
Enter short when EMA 5 crosses EMA 12 to the downside. AND RSI 21 < 50.
Stop loss = 20 - 30 pips... depending on the volatility of the currency pair. For more volatile pair, like GBP/USD, stop loss = 30. For less volatile pair, like EUR/USD, use stop loss of 20 pips.
Timeframe: 1-hour
Exit Rules for Long Trades:
Exit the trade when EMA 5 crosses back below EMA 12 Or when RSI 21 < 50. Or when price stalls at major resistance, trendline, pivot points, Fibonacci projection target. Or when bearish engulfing patterns or inverted hammer patterns form.
Exit Rules for Short Trades:
Exit our short trade when EMA 5 crosses above EMA 12 OR RSI 21 > 50 There you have it. A manual trading system for consistently making a conservative 10-pips-a-day. I hope you enjoy this short publication
There you have it. A manual trading system for consistently making a conservative 10-pips-a-day. I hope you enjoy this short publication.
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