The Trading System That Is "So Easy It's Ridiculous"

As you can see, we have all of the necessary components for a successful forex trading strategy.

First and foremost, we've decided that this is a swing trading strategy that will be used on a daily chart.

Then, to help us spot a new trend once feasible, we employ simple moving averages.

The Stochastic can assist us assess if we can still enter a trade following a moving average crossing, as well as avoid oversold and overbought zones.

The RSI is a secondary confirmation measure that aids in determining the strength of a trend.

We calculated our risk for each trade after determining our trade arrangement.

We are willing to risk 100 pips on each trade with this method.

The bigger the time frame, the more pips you should risk because your gains will be more than if you trade on a lower time window.

Following that, we specify our entry and departure rules in detail.

We'd start the testing step by performing manual backtests at this stage.

Example of a Business: Purchase EUR/USD

An example of a long trade setup is as follows:

If we go back in time and look at this chart, we can see that this is a favorable opportunity to go long based on our system rules.

You would put down what price you would have entered, your stop loss, and your exit plan if you were backtesting.

Then, one candle at a time, you'd adjust the chart to see how the trade develops.

You would have made some good pips in this situation! After this deal, you could have bought yourself something pleasant!

It was a decent opportunity to exit when the moving averages crossed in the opposite direction, as you can see.

Of course, not all of your trades will be as appealing. Some will appear to be ugly cows, but you must always remain disciplined and follow the principles of your trading method.

Example of a Business: EUR/USD should be sold.

Here's an example of a quick entry order for the “So Easy It's Not Even Funny” contest.

Because there was a moving average crossover, the Stochastic was exhibiting downward momentum but was not yet in oversold territory, and the RSI was less than 50, we can see that our conditions were met.

We'd enter short at this point.

Now we'll note our entry price, stop loss, and exit plan, and then watch what occurs when we move the chart forward one candle at a time.

Yeah, baby, boo! The trend turned out to be quite powerful, as the pair sank about 800 pips before another crossover!

Isn't that stupidly simple？

We understand that you may believe that this strategy is too easy to be profitable. The truth is that it is quite straightforward. You should not be afraid of anything.

Moreover, in the trading sector, there is an abbreviation called KISS that is often used.

It's an acronym for “Keep It Simple, Stupid!”

It essentially indicates that forex trading methods do not need to be complex.

On your chart, you don't need a million indicators. In fact, keeping things simple will save you time and effort.

The most crucial factor is self-discipline. We cannot emphasize this enough. Yes, we certainly can.

YOU MUST ALWAYS FOLLOW THE RULES OF YOUR TRADING SYSTEM!

If you've extensively tested your forex method by backtesting it and trading it live for at least a month on a DEMO account (or two).

Then you should be confident in knowing that if you stick to your guidelines, you will be successful in the long term.

Have faith in your system and in yourself!