These are my rules/strategy for my FX trading.
My main trading strategy is to never lose more than 2% on any one trade, have a positive trade expectancy, have more winners than losers, have a minimum 2:1 Reward/Risk on setups, get my average winners larger than my average losers, use hard stops (until further notice), enter trades daily/weekly as setups occur, and trade with focus. If I’m sick, or if I am having some personal troubles that would throw my focus off, I resist trading those days, or focus on paper trading, or work on understanding my trading psychology and pitfalls and/or blind spots (is that even possible? Hahaha!)
My Forex trading risk profile is to never enter a single trade larger than .01 lots per $1K of total capital, and to use a predetermined hard stop on the initial trade(defined below). I am constantly monitoring economic events both affecting the FX markets and world stock markets, as well as the US and European bond markets for signs of contagion that may spill over into currencies.
I focus on using a simplified version of the HMA strategy on 5 minute charts. I trade with an Oanda retail account on MT4 with USA FIFO restrictions and 50:1 leverage. Below is a screenshot of a chart of the indicators I’m using. The basis for trade entries is to enter in the direction of the “trend” as the HMA 200 period changes from one color to the next. The first trade remains as long as the HMA 200 period hasn’t changed color and if the trade hasn’t stopped out, I start scaling into trades as the HMA 10 period fluctuates back into the same color as the HMA 200 original trade entry (See attached jpeg). Once the trade setup has completed or the initial trade stops out, the process is begun again.
I do trade full time. I have an IRA account (TD Ameritrade ThinkorSwim platform) in addition where I’m trading US equities and equity options, and will be adding futures here shortly. I’m still developing rules/systems for the IRA account. Finally, I have a crypto portfolio not as actively traded, but coupled with a small farm of GPU and ASIC miners. It’s been a wild ride!
This is probably more than you asked for, but always willing to share and learn more as I continue down this journey. I appreciate your challenge from a previous email.
I would stop all of this short term day trading! Let it go…