What's your trading strategy?

[Antho]

I usually trade XAU based on a technical analysis which I adapted.
I use 50 day and 200 day EMA to identify trends.
Then I look for a golden cross, when 50 day crosses above the 200 day to go long. Conversely a death cross, when 50 day crosses below 200 day to go short.
To reduce false signals, I also check RSI relative to 50 day chart the same way I explained.
Keep my eye on news and COT reports.
Set my stop loss just below the recent swing low for long positions and above the recent swing high for short positions to limit potential losses.
My take profit is usually set at a 2:1 reward to risk ratio.
I also use a high leverage, 1:3000, to minimize my margin and potential loss. But keep in mind even tho I have loads of capital with that leverage. I don't over-trade. risk only 2% of your trading account on a single trade. Remember you don't just need capital to open a trade, you also need capital to support your open trade.

Great strategy! Using EMAs, RSI, and keeping an eye on news is solid. it's good you're sticking to the 2% rule and not over-trading.

 

[PhoenixJ]

Great strategy! Using EMAs, RSI, and keeping an eye on news is solid. it's good you're sticking to the 2% rule and not over-trading.

Thank you, good sir! The 2% rule is a lifesaver, you wouldn't believe it! Working with a leverage of 1:3000 is very risky! it's hard to control yourself. Even if you get a little bit greedy, it will ruin you. I've seen it happen many times. Every single time I felt too much confidence and felt greedy because all my trades were in profit and with that leverage I could trade way more, so I only added one more trade based on that greed. The loss was so bad that it was equal to the profit of those open trades! It was like the market knows when you are being greedy! Having rules for yourself, being disciplined might not make you win a lot but it sure as hell will save you from losses a lot.

 

[Antho]

Thank you, good sir! The 2% rule is a lifesaver, you wouldn't believe it! Working with a leverage of 1:3000 is very risky! it's hard to control yourself. Even if you get a little bit greedy, it will ruin you. I've seen it happen many times. Every single time I felt too much confidence and felt greedy because all my trades were in profit and with that leverage I could trade way more, so I only added one more trade based on that greed. The loss was so bad that it was equal to the profit of those open trades! It was like the market knows when you are being greedy! Having rules for yourself, being disciplined might not make you win a lot but it sure as hell will save you from losses a lot.

Totally agree, greed can be a killer in trading!

 

[FXO_trader]

Thank you, good sir! The 2% rule is a lifesaver, you wouldn't believe it! Working with a leverage of 1:3000 is very risky! it's hard to control yourself. Even if you get a little bit greedy, it will ruin you. I've seen it happen many times. Every single time I felt too much confidence and felt greedy because all my trades were in profit and with that leverage I could trade way more, so I only added one more trade based on that greed. The loss was so bad that it was equal to the profit of those open trades! It was like the market knows when you are being greedy! Having rules for yourself, being disciplined might not make you win a lot but it sure as hell will save you from losses a lot.

I’ll tell you more, even trading with 1:500 is a risk. I set it at 1:100 with my broker, but I still have to control myself. You can set it to 1:1000, but why?

 

[Elektra-Greene]

In my view, moving average and RSI combo work really fine. What’s yours?

Actually that's what I'm trying to learn.

 

[timepass]

In my view, moving average and RSI combo work really fine. What’s yours?

That may depend on your timeframe. Intraday (3/5/15 min), I have found moving average + ADX a better combination. But beware, the vix plays a big part and there may be long periods of No Signal.

 

[FXO_trader]

That may depend on your timeframe. Intraday (3/5/15 min), I have found moving average + ADX a better combination. But beware, the vix plays a big part and there may be long periods of No Signal.

It is better to have rare signals, but it is important that they are more truthful

 

[stoch]

With HFM, my trading strategy focuses on using a combination of technical analysis tools, such as moving averages and RSI, to identify potential entry and exit points. I prefer trading major currency pairs due to their high liquidity and tighter spreads offered by the broker. Additionally, I employ strict risk management techniques, such as setting stop losses and limiting leverage, to manage potential losses. I also keep an eye on market news and economic events to understand fundamental factors that could influence currency movements. This balanced approach helps me navigate various market conditions effectively.

 

[PhoenixJ]

I’ll tell you more, even trading with 1:500 is a risk. I set it at 1:100 with my broker, but I still have to control myself. You can set it to 1:1000, but why?

I have rules and follow my rules no matter what. Because of that, I do not overtrade. Explaining all the rules would take a lot of time, so I'm not doing that but I will tell you one thing though. Whenever you want to open a trade, consider that you are entering that trade with let's say 1:1 leverage. You will look at yourself and see how much lot size you can open with your amount of capital and set a take-profit and stop-loss at the places that you calculated. Now before entering the trade use as high leverage as possible. This way the only thing leverage is doing is reducing your margin by A LOT! A LOT! So, if you lose that trade, it's going to be way less than what you expect without leverage.
People use leverage to overtrade and open high-volume trades without considering that their equity is not just for opening trades, its for holding them as well. So what I do is I only use leverage to reduce the cost of my leverage, so I have more equity to support my trades.
Do you get my point?

 

[Zerologic]

Totally agree, greed can be a killer in trading!

This is the biggest reason traders fail, I agree greed is the biggest enemy that comes out from our selves, and to overcome greed we need a trading plan, if we always keep discipline to follow trading plan rules, it could minimize greed effects.