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Taking profit has been discussed quite a lot on the Fozzy thread at Forex Factory but my favourite way is to place two seperate trades at the same time. I set the first trade to take profit at the daily ATR(20) value. I then move my second trade to break even and trail with a stop again equivalent to the daily ATR(20). At the end of the day as a new bar/candle opens I move my stop accordingly if the trade has gone in my favour. If it has not the I leave it where it is.
This is just my own preference on taking profit. I know others just settle for a set amount of pips, some use a trailing stop. But I think this way you get the best of both.
Taking profit has been discussed quite a lot on the Fozzy thread at Forex Factory but my favourite way is to place two seperate trades at the same time. I set the first trade to take profit at the daily ATR(20) value. I then move my second trade to break even and trail with a stop again equivalent to the daily ATR(20). At the end of the day as a new bar/candle opens I move my stop accordingly if the trade has gone in my favour. If it has not the I leave it where it is.
This is just my own preference on taking profit. I know others just settle for a set amount of pips, some use a trailing stop. But I think this way you get the best of both.
Forex Trading System
Ok, so by now I will assume you have setup your metatrader chart as per my last post.
The Fozzy Forex method is used on a daily chart. We don't place our trades until the start of a new bar or candle. About 10 minutes before the end of the days candle we want to start scanning the pairs we trade. What we are looking for is the RSI line to cross the MA line. Once this has happened we enter on the opening of the new candle/bar. Below is a picture with that arrows showing where the RSI crossed the MA.
As you can see both these trades would have gone onto make a nice number of pips. The first one in excess of 100 pips. The second would have made at least 200 pips, maybe more if you had guts to stay in it.
There has been a lot of discussion about the stops needed in the Fozzy forex method. The original setup used the previous days high or low as the stop but I personally feel this can either sometimes be too high or too low. I now use ATR (Average True Range) with a setting of 20 to set my stop. I found this to give enough free movement required for trading a daily method without over stretching yourself.
Taking profit or when to take profit has been the subject of some debate and there are several ways to go. In my next post I will go through some of the possibilities.
Forex Trading System
Ok, so by now I will assume you have setup your metatrader chart as per my last post.
The Fozzy Forex method is used on a daily chart. We don't place our trades until the start of a new bar or candle. About 10 minutes before the end of the days candle we want to start scanning the pairs we trade. What we are looking for is the RSI line to cross the MA line. Once this has happened we enter on the opening of the new candle/bar. Below is a picture with that arrows showing where the RSI crossed the MA.
As you can see both these trades would have gone onto make a nice number of pips. The first one in excess of 100 pips. The second would have made at least 200 pips, maybe more if you had guts to stay in it.
There has been a lot of discussion about the stops needed in the Fozzy forex method. The original setup used the previous days high or low as the stop but I personally feel this can either sometimes be too high or too low. I now use ATR (Average True Range) with a setting of 20 to set my stop. I found this to give enough free movement required for trading a daily method without over stretching yourself.
Taking profit or when to take profit has been the subject of some debate and there are several ways to go. In my next post I will go through some of the possibilities.
Forex Trading System
Forex Trading System
Before I discuss how to trade the daily Fozzy method I will first show how to setup the indicators we need. This is my own personal setup and differs slightly from the original. You can of course use the original settings and get good results but this is what I found works for me.
Firstly you need a forex broker who has a good range of pairs to trade, uses Metatrader and preferably has no Sunday bar as this can skew our results. I recommend FXDD because they fit all the criteria. You can download Metatrader for free and get a demo account setup here.
First thing to do is setup our Fozzy forex template. Firstly choose a pair to start with. Lets go with EURUSD. From the top toolbar make sure the time period is set to daily. Now click the navigator button. This will bring a panel up on the left side. From the indicator section (not custom indicators) select 'Relative Strength Index' and double click it. Change the period to 8 and make sure the 'apply to' box says close.
You should now have a new indicator in the bottom of our EURUSD window. Next go back to the navigator panel and select 'Moving Average'. Instead of double clicking this time drag the indicator to the RSI box at the bottom of EURUSD. A box will appear. Put these settings into the box. Period 8, MA Method Simple, Apply to must be set to 'First Indicators Data'. Click ok.
You should now have a screen that looks like this :
One we have this screen setup we now need to save it as a template. From the top toolbar select the templates button and choose save. Put in the name Fozzy and save. We can now set this template across all the pairs. Open up all the pairs you want to trade and on each pair load the fozzy template by clicking on the template toolbar.
In my next post I will show how we use the Fozzy forex system to select good trades.
Forex Trading System
Before I discuss how to trade the daily Fozzy method I will first show how to setup the indicators we need. This is my own personal setup and differs slightly from the original. You can of course use the original settings and get good results but this is what I found works for me.
Firstly you need a forex broker who has a good range of pairs to trade, uses Metatrader and preferably has no Sunday bar as this can skew our results. I recommend FXDD because they fit all the criteria. You can download Metatrader for free and get a demo account setup here.
First thing to do is setup our Fozzy forex template. Firstly choose a pair to start with. Lets go with EURUSD. From the top toolbar make sure the time period is set to daily. Now click the navigator button. This will bring a panel up on the left side. From the indicator section (not custom indicators) select 'Relative Strength Index' and double click it. Change the period to 8 and make sure the 'apply to' box says close.
You should now have a new indicator in the bottom of our EURUSD window. Next go back to the navigator panel and select 'Moving Average'. Instead of double clicking this time drag the indicator to the RSI box at the bottom of EURUSD. A box will appear. Put these settings into the box. Period 8, MA Method Simple, Apply to must be set to 'First Indicators Data'. Click ok.
You should now have a screen that looks like this :
One we have this screen setup we now need to save it as a template. From the top toolbar select the templates button and choose save. Put in the name Fozzy and save. We can now set this template across all the pairs. Open up all the pairs you want to trade and on each pair load the fozzy template by clicking on the template toolbar.In my next post I will show how we use the Fozzy forex system to select good trades.
Forex Trading System
Forex Trading System
I have been involved in foreign exchange currency (forex) for just over a year. I originally got involved after hearing about it from several HYIP companies (which turned out to be crooked).
Hyip stands for High Yield Income Plan. Basically they are an investment plan whereby you give them your money and they trade it on your behalf and give you a percentage back either weekly or monthly. Be warned almost all of these are scams and I lost big time. At the time of writing out of the ten or so HYIP's that I invested with all but one have disappeared taking my money with them.
However without discovering HYIP I probably would never had discovered forex. Almost all the HYIP's were (allegedly) making their money from foreign currency trading. I didn't what it was or how it was done but after speaking to another HYIP'er in a forum who was making $500 a day I wanted to find out more.
After a lot of searching I found Forex Factory which has been absolutely essential in my development as a trader. The guys there are so helpful and there is so much to learn. I spent weeks crawling through the back posts on the forum learning as much as I could.
After demoing a lot of systems I finally decided I wanted a forex system that would enable me to work my full time day job but allow me to trade at the same time. A lot of forex systems are based on small time frames of one hour or less. Although some of these forex systems were ok I couldn't trade them due to my time limitations. Eventually I found a system call 'The Daily Fozzy Method' which suited me down to the ground.
In my next post I will discuss the Fozzy forex sytem, how it works and what kind of results you can expect.
Forex Trading System
I have been involved in foreign exchange currency (forex) for just over a year. I originally got involved after hearing about it from several HYIP companies (which turned out to be crooked).
Hyip stands for High Yield Income Plan. Basically they are an investment plan whereby you give them your money and they trade it on your behalf and give you a percentage back either weekly or monthly. Be warned almost all of these are scams and I lost big time. At the time of writing out of the ten or so HYIP's that I invested with all but one have disappeared taking my money with them.
However without discovering HYIP I probably would never had discovered forex. Almost all the HYIP's were (allegedly) making their money from foreign currency trading. I didn't what it was or how it was done but after speaking to another HYIP'er in a forum who was making $500 a day I wanted to find out more.
After a lot of searching I found Forex Factory which has been absolutely essential in my development as a trader. The guys there are so helpful and there is so much to learn. I spent weeks crawling through the back posts on the forum learning as much as I could.
After demoing a lot of systems I finally decided I wanted a forex system that would enable me to work my full time day job but allow me to trade at the same time. A lot of forex systems are based on small time frames of one hour or less. Although some of these forex systems were ok I couldn't trade them due to my time limitations. Eventually I found a system call 'The Daily Fozzy Method' which suited me down to the ground.
In my next post I will discuss the Fozzy forex sytem, how it works and what kind of results you can expect.
Forex Trading System