FX1D0 — trading system for earnings where others lose

“There are two hundred million idiots, manipulated by a million intelligent men”

Pablo Escobar

Hello, fellow Forex traders! We’ve all seen that after opening a new daily candle the price moves against the main trend, draws the shadow and then turns around and moves in another direction. In principle, it is the basis of the market, otherwise, the candles wouldn’t have tails. Is it possible to make money on this? Yes, it is possible. There is a specialized strategy FX1D0 aimed to work with such setups. Today we will learn how to trade on this strategy.

 

Features of trading system FX1D0

Platform: Metatrader 4
Currency pairs: GBPNZD, GBPAUD, EURNZD, GBPCAD, GBPJPY, EURAUD, EURCAD, EURJPY, GBPCHF, GBPUSD, AUDJPY, NZDJPY, CHFJPY, EURUSD

Timeframe: H1
Trading hours: London and US session
Recommended broker: Roboforex

You might need

• How to place pending orders
• TrailingStopLight tool

Idea in a basis of trading system

We all know that normal daily candle has a body, a shadow on one side and a shadow on the other side. As soon as a new day is opened, the price sometimes moves in the direction opposite to the main trend a while, and then turns around and moves in another direction. Where does it move? Right, towards the PRICE of the DAY OPENING.

Here are possible options after that: price can pass through the price of day opening and continue the trend, and can bounce off opening price. In both cases, the price of daily candle opening acts like a magnet. In principle, we don’t care where quotes move after that, as we will use the price of the day opening as a reference point for getting profit.

Rules of entry the market

—London session. 30 minutes before its opening we scan the charts for potential signals.

— To enter the trade, the price must be between two moving averages. Acceptable: below moving averages for buy, higher moving averages for sell.

— Before entering, check the distance between the ATR channels. If it is very small (less than 20 pips), it is better to miss the entrance.

— It is advisable to enter with pending orders.

BUY:

— Fast MA is higher the slow one

— The opening price of the day is above prices on opening of London

— Stochastic is below level 70, it is directed up at the moment you enter

SELL:

— Fast moving average is below the slow one

— The opening price of the day is below the opening price of London

— Stochastic is above level 30, it is directed down at the moment you enter

StopLoss and Take profit

StopLoss:

— a couple of pips above/below of High/Low candle of entry or the nearest minimum/maximum

— next ATR channel

Take-profit:

— 10 pips
— nearest ATR channel
— key level 00 or 50
— opening price of the day (the best option)
— breakeven at + 2 after 7 pips, then trailing stop
— exit at the end of the day

 

Money management

Because the percentage of profitability in this FX1D0 system is very large, you can use up to 2% of deposit per trade (do not forget that there are a lot of trading tools, so you should not overstate %). For lot calculation, you can use this tool.

Dashboard

You can keep track of possible signals of FX1D0 system on all pairs simultaneously, without switching on various charts. You can use the template FX1DO_dashboard. Just upload it on any free chart and you will see the panel with signals, as on the screenshot above.

For correct display of data, it is better to leave the chart with Dashboard for a couple of hours so you could have time to load all necessary information

Column values:

• Pair— currency pair
• Spread— current spread
• U/D — the current trend. If the box is green, then the fast average is above the slow one, if it is red then vice versa.

• Zone— if the box U/D is green, and the opening price is above the current price, and the current price is below 13 MA, it glows green. If the box U/D is red, and the opening price is below the current price and the current price is above 13 MA, it glows red. In other cases it is blue.
• Sto— if U/D и Zone are red, and the stochastic is above the oversold level, you will see a red square. The pair will turn gold, indicating that there is a signal. Similarly for purchases — if U/D and Zone are green and stochastic is below the overbought level, you will see a green rectangle.
• P/L—current profit/loss for this pair
• Do Dist.— distance in pips to the price of day opening. It is shown only if there are other conditions for entry
• Atr Spread— distance between the ATR channels. It is displayed only if other parameters indicate the entry
• Last Alert—the time of the last signal for this pair

Other columns show the signals on other timeframes.

Summary

Trading system FX1D0 gained considerable popularity on foreign forums due to its profitability. Namely, because of a high percentage of profitable trades. Its minuses include a small amount of trading signals, which is compensated by a large number of trading instruments. Understand the idea in a base of this system and, if desired, you can replace the indicators supplied with TS to your own or trade without them at all. The most important thing in any strategy is an idea on which it is based.

Download “FX1DO”strategy files

Take care, Michael Pivonka

Forextraderportal.com