ASX newbie

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This article was contributed by “Deangag” a new contributor from“Topstocks.

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Hello all.

I was wondering if any of you have tried this method of trading?

It uses daily candles and a Bill Williams Accelerator Oscillator with a 5,3,3 stochastic over the top of it.

Once the AC drops below the zero line or pops above it while the stoch is over or under the line as well, you enter the trade on the opening of the candle.

Trades are taken if in agreement with the pair’s 200MA. I scan around 20 crosses daily at around 9am (adel time) when a new daily candle opens on the ODL MT4 platform which I believe is GMT 0. More detail can be found on ozfx.com.au

Money management is a follows:

5 individual lots are opened up if the signal is given with a 100 point SL for each. If 50 pips up, 1st lot is taken and the remaining 4 lots are set at BE. 2nd lot taken at 100, 3rd at 150, 4th at 200.

The last lot is left to run until an opposite signal is given or you get stopped. You are not meant to risk more that 3% of your money an any one trade.

I have been demo trading this for a while now and recently have started going live with 5 mini lots on each trade. Last week the method netted around 700 pips which was phenomenal.

As a newbie to forex, following this method has been very educational and hopefully profitable too.

It has taught me to trade in much longer TF’s, enabled me to stare at the screen less, taught me patience is a virtue in FX and that you don’t need to trade every day, and lastly but probably most importantly to employ some sort of strict money management.

Cheers,

Dean