Haori V-Knife: Forex Practical Trading System

In this post, I would like to introduce my entire operating system to everyone, including intraday ultra short term trading strategy, wave trading strategy, news market trading strategy, and long-term trading strategy. The content introduced in this post is suitable for friends who have a certain foundation in foreign exchange trading but have not yet achieved stable profits to refer to. At the same time, it should be noted that there are many methods and strategies for stable profits in foreign exchange trading, but what you see here is only based on my own set of methods, for reference and guidance, not that you cannot make money without following my approach. I will try my best to explain as many specific methods as possible here, and avoid discussing theories and general principles. If you learn from my methods and make stable profits, don't thank me, thank yourself, it's up to you; If you haven't made any money by borrowing my methods, don't scold me. Carefully analyze where you haven't done enough. Before we officially begin, please be patient and read through this paragraph. It will help you identify whether you are currently suitable for forex trading and what other qualities you need to improve before making stable profits. If you have not passed this stage, the subsequent strategies will be meaningless to you. (Forex Life)

（1） Lock the door to stable profits

Opening up Huiyou's posts and listening to their comments, I found that many of my friends around me do not yet have the stable and profitable self conditions, and this condition is your current mentality and quality cultivation. For example, in recent days, a document from the China Banking Regulatory Commission has already caused confusion among many friends. Many people have been excluded from this industry, and it is precisely you who are being excluded. Many people think that the decision of the China Banking Regulatory Commission has cut off their own financial path. Has it really cut off your financial path? Do you guarantee that you can make stable profits? If you want to stand at the top of the pyramid in this industry, you must first possess the qualities shared by others on this pyramid - calmness, stability, self-discipline, risk avoidance, continuous learning, and tolerance.

How can we know the fortune or misfortune of a lost horse? I think the decision of the China Banking Regulatory Commission is a good thing for the vast number of foreign exchange friends, as it gives you the opportunity and time to learn and mature. I feel that this suspension is different from the ban ten years ago. The door to foreign exchange margin trading will be reopened to Chinese people in a better way in the near future. During this period, close your complaining mouth, open your thinking mind, improve your cultivation, and hone your profitable skills to prepare for another challenge. I hope you can answer the following questions truthfully, and your answers will tell you what you still lack. Don't think these issues have nothing to do with the transaction, your attitude towards life will be brought into the transaction.

What would you do if the driver brakes suddenly on a bus and someone next to you steps on you? Complaining about the driver? Blame the person who stepped on you?

The most positive and advisable attitude is to find one's own reasons and tell oneself to pay attention to preventing such things from happening to oneself in the next car ride. It is important to maintain a safe distance from others as much as possible, and if it is too crowded, choose to stand with people who wear flat shoes and are relatively light in weight as much as possible to reduce the risk of harm to oneself when it occurs.

What would you do if you followed traffic rules at an intersection and were still hit by a car? Is there a call for legislation to severely punish those who violate rules? Create public opinion to condemn those who violate the law?

The most positive and advisable attitude is to find one's own reasons and tell oneself that even if it's a green light when crossing the road next time, one should look left and right to ensure their safety to the greatest extent possible. Because no matter what, the only one who can protect you at any time is yourself. Even if the law shoots the person who hit you and drowns the driver with everyone's saliva, the harm already caused to you cannot be undone.

What would you do if you were deceived by someone around you? Curse him every day? Do you want to find a way to deceive him too?

The most positive and advisable attitude is still to find one's own reasons, learn from the lessons, and remember that the intention to harm others cannot be avoided, and the intention to prevent others cannot be ignored. People who are deceived often have the following characteristics: greed, blind kindness, exposing their weaknesses, and trusting others easily. Sincerity does not mean that you can not protect yourself and trust others easily. This is called stupidity rather than kindness.

Do you hold a contemptuous, hateful, or indifferent attitude towards the wealthy people around you? Did you have a voice in the clamor for donations and demands from the wealthy during the Sichuan earthquake?

Too many Chinese people often only focus on how others are doing and rarely consider themselves. Why can't you succeed and become wealthy under the same system and rules? Those who only know how to blame others all day long will only make their lives funny like clowns, while those who constantly reflect on themselves, constantly improve, and set an example for those who are stronger than themselves will ultimately end up among the strong.

The above four questions are just a starting point, and there are still many that I hope friends can raise for themselves to consider. And the message I want to convey to my friends through these is: Who else in this world can stop you from achieving your future besides yourself? As long as there is one person in the world who achieves success through their own efforts, you have no reason to complain about the rules; As long as one person becomes wealthy through their own efforts, there is no reason to condemn the system. There are no resentful women among the strong, and success also rejects the mediocre.

Sharp tools make good work. And this tool is first and foremost your own, even if you give you the Sea God Needle, you will dance like a burning stick if your own cultivation is not good.

foreign exchange marketWhat attracts people is that it not only brings you material wealth, but also washes away the dregs of your humanity.

Some people say that I still prefer to be a person who is sexually attracted, and I also like people like this. This market also likes people like this kind. If you don't care about fish meat, how can this market support those tigers and wolves? If you can't hammer yourself into a calm, objective, and self disciplined person, then you either leave this arena of survival of the fittest or come as food to help us become prosperous, haha!

Are you ready to knock on the door to success???

（2） Open the door to stable profits

1、 Winning Ultra Short

This refers to the intraday ultra short term trading strategy, which can be entered and exited multiple times within a day. Firstly, the choice of currency pairs is focused on straight market currencies due to spreads, as the frequency of ultra short term trading results in spreads that are almost equal to your profits.

1. Tool library: 15 minute charts; Candlestick chart; 20 period moving average; Random indicators.

2. Rule: Using the 15 minute chart as the entry benchmark, observe the performance of the 20 period moving average and candlestick chart on the 15 minute chart. When the candlestick crosses the moving average upwards and the random indicator makes a golden cross as the entry prompt, the subsequent candlestick (which may not be the second one) surpasses the highest price of the candlestick crossing the moving average upwards and the random indicator remains upward as the entry point to go long. The initial stop loss is set at the lowest point of the candlestick crossing the moving average and fluctuates the corresponding spread. When the profit is over 20 points, the stop loss is set at the break even point and a fixed stop win is set (the stop win point will be discussed later). Short selling is the opposite.

3. Pre trading work: According to the rules, extrapolate for more than 3 months and identify the following patterns: (1) The average point of initial stop loss; （2）. Observing the number of points that a currency pair has exited within a day, in order to find a reasonable stop loss point, if the average stop loss point of the selected currency pair is below 25 points and the majority of the time the currency pair exits within a day is above 50 points, then the actual stop win point for the operation is set at 50 points; （3）. The maximum number and points of consecutive losses, identify the safe range of funds, and in order to have a clear idea of how many consecutive losses may occur and how much money will be lost, and develop fund management measures and opening ratios based on the maximum amount of capital withdrawal, it is recommended that the opening ratio not exceed one tenth. In practical operation, as long as the capital outflow is within this predetermined safe range, do not be nervous or change the operation strategy arbitrarily; （4）. In the time intensive range of loss trading and profit trading.

4. Strategy optimization: (1) Time optimization, try to avoid loss making trading intensive areas as much as possible according to the previously identified trading intensive areas, and focus on profitable trading intensive areas for trading; （2）. Important position optimization: If there is an important support position not far below the price, one should consider giving up the short signal. If there is an important resistance position not far above the price, one should consider giving up the long signal.

5. Strategy tracking: Track trading probabilities daily, observe changes in the trading environment, and adjust trading strategies in a timely manner. For example, changes in stop loss points, stop win points, consecutive losses and point changes, changes in trading intervals, etc.

6. Strategic focus: (1) Direct currency; （2）. Fixed stop loss; （3）. Fixed stop win; （4）. Profit and loss ratio; （5）. Fund management.

7. Strategy Description: The key to profitability with this strategy lies in the mastery of the profit and loss ratio, as well as the coordination between the number of entries and profitability. You should try to expand your profit and loss ratio as much as possible within a reasonable range, at least reaching 2:1 or above. Then you also need to reduce your trading frequency as much as possible while ensuring as much profit as possible. For example, I found that if you trade all day long, you need to trade an average of more than 10 times a day, and your profitability is around 30 points per day on average. If we avoid the loss intensive trading range, the average daily trading frequency will decrease to around 6-7 times, while the profitability will slightly increase to around 35-40 points per day on average. If the trading range is further narrowed down to only trading within the profit intensive trading range, the average daily trading frequency will decrease to 2-3 times, and the profitability will slightly decrease to around 25 points per day.

2、 Driving frequency band

What we are talking about here is the trading strategy of the band, with profit holding time ranging from hours to days. There are no strict requirements for the selection of currency pairs, as long as they meet the strategic standards, they can be traded.

1. Tool library: weekly chart, daily chart, 4-hour chart, 15 minute chart; Fibonacci; Candlestick chart; Moving average; Random indicators; Trend line.

2. Rule: Prepare for entry when the price reaches an important position, observe the performance of the price at the important position, follow up in the direction of the breakthrough if there is an effective breakthrough, and follow up in the direction of the rebound if there is an effective rebound. The identification method for whether a breakthrough is effective is (explained by breaking through the resistance level). The candlestick that breaks through the resistance level should break through the resistance level within a time frame of more than 4 hours. The closing price of this candlestick is not important as long as the highest price breaks through. Observe the subsequent candlestick performance on the time frame chart where you discover the breakthrough (at this time, you must not switch time frames to observe). If the subsequent candlestick has a small price retracement or even no retracement, but directly exceeds the highest price of the candlestick where the breakthrough occurred, switch to the 15 minute chart and enter the market according to the rules of the ultra short term and use stop loss (entering the market with a 15 minute chart is to more accurately grasp the entry time and price, while using a smaller time frame). Place stop loss and do not set stop win. There are two methods to take a profit and exit: one is to move the stop loss based on the gradually rising low point, and the other is to manually exit based on reaching the expected target (the specific methods have been discussed in previous posts, so we won't go into too much detail here and can refer to them). The handling of breaking through the support level can be reversed, and the handling of rebound can also be understood in reverse (if you can't understand, let me tell you separately).

3. Pre trade work: Use Fibonacci, moving averages, and trend lines in a 4-hour time frame chart to identify important support and resistance levels, as well as important trading patterns, and clarify the approximate entry position and target position after entry.

4. Strategy optimization: (1) Do not enter the market for trading when the price is suspended and has not reached an important position (2) When the first trade shows a profit of over 100 points, it should be considered to increase the price during a price correction. Each increase should be treated as a separate trade, with separate entry timing and initial stop loss.

5. Strategy tracking: The tracking of this strategy should mainly focus on the mistakes you make during execution and the execution situation. Record your mistakes and continuously correct your own shortcomings to standardize your entry and exit discipline.

6. Strategic focus: (1) Identification of important locations; （2）. The combination of initial stop loss and moving stop loss; （3）. Profit increase; （4）. Fund management.

3、 Winning News

What is being discussed here is the operation method of the news market, which involves holding a profitable order for a few minutes.

A few days ago, I saw a friend saying that important data such as non farm payroll are just giving us money. Yes! The foreign exchange market is actually sending us money every day, every hour, and every moment, but the key is whether you are ready with the rake for making money and the box for storing money? If not handled properly, the opportunity in your eyes may turn into your disaster. Many friends have been injured in the data market and are afraid to trade when they see significant profit opportunities in a short period of time. They are also unwilling to lose such a good opportunity. What should they do? I hope this strategy can provide you with some reference and help. However, trading news in the market is a very demanding thing. If you don't have a strong trading foundation and a good mindset, it is a wise choice not to engage in such trading for the time being.

1. Tool library: Data release schedule; Hui Market News; 1-minute chart; Daily chart; Trend line.

2. Rule: Use a 1-minute chart to enter the market based on short-term price trends within 5 minutes before data release, without setting stop loss or take all. If there is a profit within 5-10 minutes after data release, exit. If there is a loss, hold and observe the trend of the currency pair within 24 hours. If it becomes a profit within 24 hours, set a protective stop loss at the break even point. When it reaches 24 hours, exit decisively regardless of profit or loss.

3. Pre transaction work:

（1）. Search for the data release schedule and foreign exchange news to find the specific release time of recent market focus events;

（2）. Identify and determine the currency pairs that have a significant response to the data;

（3）. Use trend lines to determine the short-term price trend of this currency pair in the daily chart.

4. Strategy optimization: If the currency pair you have chosen is in a consolidation phase without a clear direction, abandon this transaction.

5. Strategy tracking: Track changes in market response to data, abandon data that gradually weakens its impact on the market, and capture data that gradually strengthens its impact on the market; Track changes in market trends after data release.

6. Strategic focus:

（1）. Mastery of data importance and timing;

（2）. Selection of sensitive currency pairs;

（3）. Confirmation of short-term trends;

（4）. Advance entry;

（5）. The strictest fund management and the most conservative opening ratio.

7. Strategy Description:

（1）. The most stable platform usually cannot guarantee the slippage, trading delay, and trading failure during data release. The risk of using saddle shaped preset trading orders lies in the oscillation of scanning and sliding points to complete transactions. This is the reason why I entered trading early. Since I want to do data market, it is better to keep the entry and exit within my control. Instead of letting the market throw you around like a doll, putting me in an awkward situation of not being able to enter or exit, I prefer to bear the risks and rewards brought by my own decisions;

（2）. Determining the direction of a trading currency pair in advance is to find a way to minimize losses and escape in case of failure. If the price fluctuates in the opposite direction of the current trend when data is released, in many cases, the market will return to its original track after the impact of the data, giving you the opportunity to reduce losses and exit;

（3）. If the price is currently in a consolidation stage, the release of an important data may play a role in breaking the deadlock, continuing the trend or turning point. At this time, if the price moves in the opposite direction of your entry, it is likely to be gone forever, and you will lose a better opportunity to escape. Therefore, under this premise, I am giving up the trading of this news market.

4、 Let go of the long term

My long-term trading strategy is based on carry trades, with profitable holding periods lasting for weeks or even months. The selection of currency pairs is mainly focused on those with higher interest rate differentials.

1. Tool library: Candlestick chart; Trend line; Moving average; Weekly chart.

2. Rules: When the price rises, use the ultra short term entry rules to enter the market to make long high interest margin currency pairs, adjust the stop loss at the break even point after the transaction gains and fix the stop loss at this point, until the price goes back to knock off the stop loss, or hold for a long time to earn the interest margin.

3. Pre trading work: (1) Pay attention to high spread currency pairs with deep downward price corrections;Ava Forex（2）. Use tools to determine if prices are starting to show an upward trend.

4. Strategy tracking: Pay attention to changes in interest spreads and timely settle interest spread transactions with reduced profits.

5. Strategic focus: (1) High spread currency pairs; （2）. The currency pair should experience a deep pullback before entering the market; （3）. Long term holding, no price drop, no stop loss, no exit, no interest margin reduction, no exit.

6. Strategy explanation: Some friends may ask why you didn't leave when the price went out and started to retrace? This not only allows you to earn interest spreads but also profits from the trend. I want to tell you that this is called discipline. If you want to earn profits from the trend, I have a band trading strategy, constantly changing and switching your strategies and rules in the same transaction, constantly violating your discipline. You may make some small profits. On the surface, you may earn more money in the short term than those who rigidly abide by their rules and discipline, but in the long run, you are far less profitable and do not live as long as they do.

Alright, that concludes my introduction. I hope to bring some benefits to my friends. Harmonize your mindset, remember your rules, execute your strategies, strictly adhere to your discipline, observe market patterns, and understand and utilize probabilities. You will make money!!!