The 4th Horseman
Private
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- 28
Hey all,
I've decided to share a very, very simple strategy. It really doesn't get as basic as this.
If you wish to follow this strategy then do so at your own risk. There are no promises of great wealth and the holy grail of trading strategies.
This is mainly for educational purposes or for new traders who want to check out some simple systems.
But if you ever feel the urge to tip me some crypto for my work then just PM
Indicators:
The cloud and Kijun line from the Ichimoku indicator, Fractals and the Williams %R set on 10. The charts used are the top 30 Forex pairs, BTCUSD & ETHUSD.
I prefer to keep the Ichimoku Cloud on the chart as it is can sometimes predict the continuation of a trend. If the 4H cloud is red then be bearish, if green be bullish.
The main chart will be the 4 hour but the daily signal may sometimes be used to trade. The daily, weekly & monthly charts will be used for directional reference.
As the 4 hour chart is the main trading ground this frees up a lot of time during the day. The charts only need to be looked at when the 4H candle closes (6 x daily).
It may be possible to use this system in stocks or even crypto but Forex, AU/AG will keep things simple. Stick to BTCUSD or ETHUSD if talking crypto please.
TIP*** If you are mainly a crypto trader then perhaps the Wyckoff channel breakout trading system in combination with The Little Old Lady strategy may interest you.
Instructions:
1: A 'possible' signal occurs when a candle crosses the Kijun line (Base Line) on the 4 hour chart. It's important to wait for the 4H candle to close.
2: Following the signal it is important to refer to the daily & weekly charts to gauge the direction using the Williams %R, bullish/bearish engulfing or hammer candles.
i.e. When a 4H 'buy' signal appears, it's best to see the daily Williams%R low and the weekly Williams %R quite low and/or moving higher. Stay in trend.
3: Stop Losses are to be placed under the previous low for long positions or placed above the previous high for short positions.
4: When a trade moves 30 - 100% into positive territory the move Stop Loss to 5 pips into profit, trade is protected then. Ignoring the trade for 12 - 16 hours is often beneficial.
5: Trail Stop Loss into positive territory when a new fractal appears. This will allow winners to run. If you prefer to set take profit targets then feel free to use your system.
6: Close the trade if the price reverses and breaks the Kijun line. This will protect from losses from reversals but sometimes also cuts winning trades short.
7: Every 4 hour chart needs just one alert, 'price crossing 4h kijun line' and applied to candle close. The alerts will ring exactly on every 4th hour rather than randomly.
8: Never have more than 4% of your account exposed to possible loss at any one time. When the stop loss of a position is moved above break even it is not exposed.
9: Never risk more than 2% of your account on one trade. 1% exposure is enough per trade as the target will be typically 2:1 or 3:1 Risk/Reward.
10: Do not open a EURUSD and EURJPY with 2% exposed risk each as you are effectively risking 4% on the Euro. i.e. EURUSD and AUDJPY are less related.
I think that just about covers the details of the system and basic money management.
Keep an eye on the calendar for major news events and tighten stops ahead. Trading news events is not a part of this system. Casinos trade black or red...
If you are ever intending to trade news then trade the fade afterwards. Fibonacci extensions are a great tool to find where price may stop. Be sure the news pushed the price against the major trend, those events are the most profitable when trading the fade.
I will be posting the most interesting signals in a screenshot when they occur.
I will also open a $50,000 FTMO, non-aggressive, two week demo account and post the results.
P.S.
I am currently looking for a way to become a funded trader.
Economically things have not been good to many of us so I don't particularly want to spend a lot on registration or monthly fees.
If you know of any brokers that are looking to fund traders then send me a P.M.
I'll happily take a trail on a demo for as long as the broker wishes.
Thanks a lot.
I've decided to share a very, very simple strategy. It really doesn't get as basic as this.
If you wish to follow this strategy then do so at your own risk. There are no promises of great wealth and the holy grail of trading strategies.
This is mainly for educational purposes or for new traders who want to check out some simple systems.
But if you ever feel the urge to tip me some crypto for my work then just PM
Indicators:
The cloud and Kijun line from the Ichimoku indicator, Fractals and the Williams %R set on 10. The charts used are the top 30 Forex pairs, BTCUSD & ETHUSD.
I prefer to keep the Ichimoku Cloud on the chart as it is can sometimes predict the continuation of a trend. If the 4H cloud is red then be bearish, if green be bullish.
The main chart will be the 4 hour but the daily signal may sometimes be used to trade. The daily, weekly & monthly charts will be used for directional reference.
As the 4 hour chart is the main trading ground this frees up a lot of time during the day. The charts only need to be looked at when the 4H candle closes (6 x daily).
It may be possible to use this system in stocks or even crypto but Forex, AU/AG will keep things simple. Stick to BTCUSD or ETHUSD if talking crypto please.
TIP*** If you are mainly a crypto trader then perhaps the Wyckoff channel breakout trading system in combination with The Little Old Lady strategy may interest you.
Instructions:
1: A 'possible' signal occurs when a candle crosses the Kijun line (Base Line) on the 4 hour chart. It's important to wait for the 4H candle to close.
2: Following the signal it is important to refer to the daily & weekly charts to gauge the direction using the Williams %R, bullish/bearish engulfing or hammer candles.
i.e. When a 4H 'buy' signal appears, it's best to see the daily Williams%R low and the weekly Williams %R quite low and/or moving higher. Stay in trend.
3: Stop Losses are to be placed under the previous low for long positions or placed above the previous high for short positions.
4: When a trade moves 30 - 100% into positive territory the move Stop Loss to 5 pips into profit, trade is protected then. Ignoring the trade for 12 - 16 hours is often beneficial.
5: Trail Stop Loss into positive territory when a new fractal appears. This will allow winners to run. If you prefer to set take profit targets then feel free to use your system.
6: Close the trade if the price reverses and breaks the Kijun line. This will protect from losses from reversals but sometimes also cuts winning trades short.
7: Every 4 hour chart needs just one alert, 'price crossing 4h kijun line' and applied to candle close. The alerts will ring exactly on every 4th hour rather than randomly.
8: Never have more than 4% of your account exposed to possible loss at any one time. When the stop loss of a position is moved above break even it is not exposed.
9: Never risk more than 2% of your account on one trade. 1% exposure is enough per trade as the target will be typically 2:1 or 3:1 Risk/Reward.
10: Do not open a EURUSD and EURJPY with 2% exposed risk each as you are effectively risking 4% on the Euro. i.e. EURUSD and AUDJPY are less related.
I think that just about covers the details of the system and basic money management.
Keep an eye on the calendar for major news events and tighten stops ahead. Trading news events is not a part of this system. Casinos trade black or red...
If you are ever intending to trade news then trade the fade afterwards. Fibonacci extensions are a great tool to find where price may stop. Be sure the news pushed the price against the major trend, those events are the most profitable when trading the fade.
I will be posting the most interesting signals in a screenshot when they occur.
I will also open a $50,000 FTMO, non-aggressive, two week demo account and post the results.
P.S.
I am currently looking for a way to become a funded trader.
Economically things have not been good to many of us so I don't particularly want to spend a lot on registration or monthly fees.
If you know of any brokers that are looking to fund traders then send me a P.M.
I'll happily take a trail on a demo for as long as the broker wishes.
Thanks a lot.
Last edited:
