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OzFx System :) 100-800 Pips Per Trade

Discussion in 'Forex Trading Systems and Strategies' started by OzFx, Apr 15, 2008.

  1. OzFx

    OzFx Private, 1st Class

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    Hello Friends,

    I would like to share with you a system that has consistently been successful for me, that I would like to call OzFx System.

    What can You expect?
    This system has a potential of banking 100-800+ pips per trade trading with Daily Chart.

    Why Daily Chart?
    As you could guess by now that this is not a 5 min scalping system. I believe in trading longer time frame simply because first of all rules of
    technical analysis hold true more often and second I don’t want to sit in front of pc all day long.

    Think like this, most of us one day would like to be full time traders; however it doesn’t mean that we spend all that time in front of PC.
    I would rather go flying and playing golf. So I developed this system thinking of long term and hence it is based on Daily Chart.

    See It For Yourself:
    Let’s see if you can spot the correlation between the indicator and the price action.

    [​IMG]

    I bet you were able to spot that short entry (300+ pips). Tell me that you noticed that every time AC changes color and crosses the 0 line
    it gives us an entry signal. Am I right or right?? :)

    Did you see another short trade towards the left side of the chart?? That trade was worth 835 pips in 5 days.

    No Clue So far:
    I believe 90% of the people will be able to spot the correlation mentioned above. If you are one of the unlucky 10%, then I would recommend
    to try some other system and not to waste your time on this post.

    The reason I say above is that we should trade using strategy that is intuitive and easy to follow. Technical analysis is not perfect science;
    I believe it is an ART, an ART to pick signals as they happen. I am terrible at spotting Flags, Triangles and Head & Shoulders. Hence I keep away
    from them and don’t want to spend years to master them.

    A Bit Of History:
    I started with Forex few years ago simply because I like the volatility and leverage. I’ve never traded stocks in my life and no plans to do so ever.
    The only stock I ever held was given to me by the IT company I worked for.

    As most of us I tried systems provided on Forums and also commercial system. I tried News Trading, 5 min scalping and astrology (just kidding),
    but had no luck. I wasted a fair bit of money and precious time on several systems that were not worth their while.

    However the learning that took from that was these systems were complex, had too many indicators (or none) and required a great deal of discretion.
    So I went and did my own research to see what indicators make sense, what setting works best and what time frame they should be used on.


    So What Is The System?

    Setup:
    • Open up a daily chart on EUR/JPY.
    • Apply Bill Willam’s Accelerator Oscillator (AC).
    • Apply Stochastic with setting 5,3,3 on top of AC. Use the template if don’t know how to.
    • Try and use demo MT4 from ODL securities. Every broker has different time when they start a new daily candle.
    • ODL seems to have the time that works best. I only use their demo account for charts and place my trades on totally different broker.
    Short Entry: RED AC below 0 and Stot below 0
    Long Entry: Green AC above 0 and Stot above 0
    Exit: OppsiteBuy/Sell signal or as per Money Management.
    Filter: Apply 200SMA. If price is below 200SMA then only take short trades. If Price is above 200SMA then only take long trades.

    Money Management:
    • Trade with 5 Lots with Stop Loss 100 pips away
    • Take Profit on 1st Lot at 50 pips. Move Stop Loss to Break Even (BE).
    • Take Profit on 2nd Lot at 100 pips.
    • Take Profit on 3rd Lot at 150 pips.
    • Take Profit on 4th Lot at 200 pips.
    • Let the 5th Lot run until you see an opposite entry signal.
    The Risk/Reward ratio turns out to be 1:1 or better depending on your 5th Lot. Since we trade on daily and would only take
    trades with high probability of success, 1:1 would work just fine.

    If you choose to do back-testing then take special care for signals from late November to end of Dec. Low volume during this time
    of the year creates wild swings.

    My Challenge To You:
    Spend 2 mins every day to analyze 8-10 of your favorite pairs. Demo it for 2-3 weeks and post the screen shots of your trades for everyone
    to see and learn.

    What’s In For Me?
    It is time for me to Give Back. I learned a great deal from forums and thought there can’t be another way to share something that can make
    us all a lot of money. Plus I hope to learn from others on how to improve this system.

    I’ll reveal more info about the system once I start to see more interest in this post from Forum members.



    Happy Trading
    OzFx
     
  2. keitsuke

    keitsuke Recruit

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    Thanks for posting your system OzFX.

    I agree with you that TA holds true more often than not in larger time frames, but the down side is there are limited trade entry points.

    I'm pretty new to FX so I'll give anything a go, so I'll test your system out and see how it goes.

    Btw are you in Australia?

    -K
     
  3. OzFx

    OzFx Private, 1st Class

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    Yeah you are right. Limited signals but more successful. I know how it feels when are you starting out, you want to trade as much as you can, which is not a bad thing since you learn faster. However in long term one should only look to trade on Daily or higher TFs.

    Cheers,
    Oz
    P.S. I am from Sydney, Australia :)
     
  4. LONGBOY

    LONGBOY Recruit

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    Thanks and Question!

    Oz, thanks for the post.

    I'll try your system with my demo account.

    BTW, what time of a day do you recommend to buy or sell? Sometimes I don't know how I should take an action during the European and US market time. And I don't know whether I should hold or call if there's a big news, such as interest rate announcement.

    If you have any know-how about that, please give me a little more tip.

    Best regards,
    Longboy
     
  5. OzWizard

    OzWizard Corporal Punishment

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    Nice trade today....

    Oz in Aussie... I took your system and looked at my FUTURES charts. Liked what I saw, tweaked it a little - AND MADE SOME NICE $$$ !

    I always like the idea of 3 ! Here in Ukraine it is an important number!

    In Soviet times a bottle of Vodka was 2 rubles 87 kopecks. Three guys would each chip in 1 ruble, buy a bottle and have 13 kopecks for some hard cheese... 3 !!! FOR A PARTY!!!

    Anyway, I trade mostly the POUND & EURO. I used a 120 minute chart and set up your parameters.

    1. Stochastics made a cross to the upside....

    2. Bill buddy crossed over 0.00........

    3. Prices moved aboved SMA........

    I buy.... $6.50 per pip per contract. I picked up a nice 127 pips in a little over 6 hours....

    ps - I like sitting at my SCREEN!!

    O Z ... the real OZ ... Kyiv, UA !
     

    Attached Files:

  6. OzFx

    OzFx Private, 1st Class

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    Important Update!

    Hello Friends,

    Few days back I mentioned reconsidering 200SMA filter rule and now I am convinced that we can relax this rule a bit specially in times when most pairs are trending against the established trend. So here is what I recommend:

    1. Wait for AC to cross “0″ line.
    2. Go down to 4hr and 1hr to see if you still see AC and Stot in the same direction.
    3. Risk less percent of equity for trades against the trend.

    I would welcome your ideas and thoughts on this.

    Cheers,
    Oz
     
  7. keitsuke

    keitsuke Recruit

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    Thanks for the advice OzFx.
    I work full time so I don't have much time to trade after work, but evening is the best time to trade and I need my beauty sleep, you can see my predicament. I'm in Syd too.

    Logically I should be trading longer time frames but like you said I learn faster doing more trades in smaller time frames, but I'm finding I'm spending too many hours in front the computer, including the 8 hours at work.

    I'll open up another demo account and try out your system alongside my current one and see which works better.

    Do you trade for a living?

    -K
     
  8. OzWizard

    OzWizard Corporal Punishment

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    ! 2 in a ROW !

    I entered at .9649 (kinda missed it)

    Covered at .9818

    169 points

    $1,098.50 (minus $6.50 comm)

    Thanks Ozzie Aussie!! :)
     

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  9. Isabelle

    Isabelle Recruit

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    OzFx System question...

    Oz, a neubie question here!

    On the stochastic indicator, which line are you looking for to cross zero,
    GREEN or RED?

    Thank you so much for sharing your system!

    Isabelle
    :)
     
  10. Pharaoh

    Pharaoh Colonel

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    OK, I'll have to plead ignorance. How do I get my stochiastics to overlay the AC?
     

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