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Thursday, 20 November 2008

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Brain trading System on 4 hour chart

Tuesday, 21 November 2006

Brain System

I found this system on Forex-TSD.com, it's not a perfect system, but in the long run, with proper money management and mentality, it can be profitable. I've been following it for a week or so only. But it's certainly promising.

I personally prefer to trade on the 4 hour timeframe (I have a full time job), that way, I only have to check it once every 4 hours for the candle to form. Doing it on a Daily will be good too. but anything less than 4 hours,more filters has to be used because you'll see too many signals.

Indicators

Brain Signal 1 and 2 indicators (total: 8 of them, but I don't use braintrend2 )
Vegas 4 Hour Tunnel

Rules

Enter Long when both Sig 1 and Sig 2 are below the price action
Braintrend1 is blue in color
Enter Short When both Sig 1 and 2 are above the price action
BrainTrend1 is red
Stoploss level at either Brain1Stopline or Brain2Stopline

For me, I take half my profit when price hits first Fib level on Vegas Tunnel. I let the next half ride till the second or till it's taken out by my trail stop. Like all trend following system, it'll do badly during ranging days.

I check the Daily for the way the Trend is developing and enter position only in that direction. It's a very simple system to follow, there are losing days, but the winning days, more than make up for the losing ones. Having too many indicators hurts my brain(pun intended), If it averages more win than losses, than it's my kind of system.

I've a modest aim, average 70 pips or so a week, 250 pips a month, I'll be a happy boy. Last week, This system raked in 221 pips on the cable, but I was experimenting with another system and lost 55 pips. Anyway, have a try, it might work for you.

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