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Trading systems that work
Below,
you'll find extensive information on leading trading systems
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Fellow traders, we have promised you lately that we shall give you our top and best 4 trading systems that we personally use to build up our account according to the plan in our homepage. And now is the time to share. So get your cup of coffee in here now and read carefully.
best trading systemsSystem number one: 1,2,3 system
The 1 2 3 system is a very smart one, it's one of my best actually. The simplicity and effectiveness of this system makes it ready to utilize in either forex, options, commodities or stocks. The system simply is to allocate 3 points on the chart. Those 3 points will be your guide to open the trade buy or sell according to the place of these 3 points location.
The beauty of this system is that you can trade it in the direction of the trend or even trade it counter-trend. Another advantage of this system is that not only it works on all financial instruments, but also works on all timeframes, the bigger the better. Very simple, exists every now and then that it will make you master it in no time. And best of all, very lucrative with gorgeous risk/reward ratio.
What is the 1 2 3 system
It is a pattern that occurs repeatedly in your chart without you even noticing it. It became popular thanks to Mark Crisp and many other technical analysts. Simply look at he following M5 chart: (click the chart to enlarge)
Now simply speaking, point one is the top, point 2 is the correction, point 3 is the retest that never goes beyond point 1, because if it ever does. The 1 2 3 pattern therefore is invalid. Got it? this is very important.
So now we are going to trade this chart as follows:
- We sell at the breakout of point 2 ( at the blue line - see the chart above), placing a stop loss at the red line. Done.
P.S: Still confused? see graph below (click the chart to enlarge)
Now can you see why we consider this one of the best trading systems ever? or how simple and smart this is? moreover, by looking at several charts, can you see how repeatedly this pattern shows off itself without you even paying attention to it? ofcourse there will be times when this pattern makes a loss, duh, no single system is 100% perfect. But this one, is amazing. Trust it from the mouth of the observer. We have long tested it on all timeframes and it works. It does because simply that's how the market goes: trend - exhaustion of the trend - correction - retest - reverse. And that's the 1 2 3 of counter-trend trading.
1 2 3 system as a trend following system
The way we trade the counter-trend 1 2 3 system is the same as we trade it in the direction pf the trend. There is nothing more illustrative than looking at the chart below (click to enlarge).
See scalpers would love this, a risk of losing 10 pips over a gain of more than 20 pips on this trade. Some times the loss could be 1/4 of the profit potential. This is why we never let go this system.
Exiting the trade
Because the shocking fact is that exiting the trade is more important than the entry itself, listen to this and do it.
-Assign 2:1 profit/loss trades. (if your stop loss is 50 pips, profit should be 100 or more).
- or, once reached the estimated profit target above, assign a protective stop little beyond it and let your profit run for more.
- the bigger the timeframe the more profit/loss potential for the trade. So act accordingly.
Important notes
- Do not trade this system on your live account until you master it on demo first.
- Do not open a trade until you assign a stop loss first.
- Do not let your emotions involve. This system is extremely simple enough for you to quit the second-guessing.
- Stay healthy, take care of your family, don't get glued to the chart.
- If you have any questions, it's easy to contact us and right your question in the contact form. We will be more than happy to answer any question.
See you guys in the next best trading system.
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