I received a lot of questions and inquiries about my Primed Trading System so I decided to turn it into a little bit of a blog post which details the story of how I trade this system and provide information about what I am doing and how I am trading with this system.
What I will do in order to make this all much more informative is release updates on trades I take with the system and create recaps, also I will connect an account to MyFxBook so you can watch it live for yourself!
Make sure you scroll down and subscribe to this blog if you want to learn to trade like a real trader!
Starting with what is my system?
If you are new to PipsMatter.com, then you need to know that I trade in 3-time terminals which are, intraday for news, day trading, and swing trading. You should also know that the Trading System I use simply focuses on either market reversals based on price action patterns or buying/selling continuations.
In 2016 this system helped me turn just about €8,000 into over €400,000.00. but since then it has been upgraded numerous times in an effort to make it more effective and allow me to play great defense and offense at the same time. Basically convert and retain pips!
The Risk Management of the system is all in the position sizing followed by definite exit areas which are predetermined before a trade is open, in fact, that is the first thing I look for, a price action exit area before I do anything else I find my exit and determine my position size on the specific chart setup I'm trading based on the potential and probability.
What indicators do I use?
I only use 3 indicators to help me understand what is going on with the asset I am about to trade, they are:
EMA set to 13
RSI set to 13
Donchain Channels set to 30
Here's a screenshot of my TradingView chart to showcase how it looks like, you can click on the image to enlarge it!
How do I use the indicators?
Ok so this is pretty important, so pay attention! I will first explain them one by one and then combine the DC and EMA.
The EMA is used as a short-term trend indicator since I generally don't leave a trade open for more than a few days (swing trading), but it is also used as a continuation in a short-term trend. Price just loves to bounce from this level as seen in the screenshot above (in the blue rising wedge).
I use the Donchain Channels to spot key support & resistance levels quicker by finding major reversals that leave straight lines at the top (red) or bottom (green).
As for the RSI, I use it like everyone else... to understand if something MIGHT be overbought or oversold. (emphasis on the might as you never know how long a currency, stock or anything else can go up or down.)
Finally, I use the middle of the DC in combination with the EMA to determine short-term selling or buying opportunities based on a corss-over between the two.
I generally focus on contractions of the price which lead to key trading levels based on the DC, but I do execute on double tops/bottoms, 3X pattern and head and shoulders patterns.
I really connect things with Candlestick Analysis which really helps increase the odds of my trade being right.
As for the 3X pattern, It's something I found myself by investing "training" time into charting. The pattern has 4 different setups, 3 higher highs, 3 higher lows, 3 lower lows, and 3 lower highs and all must be connected with a trendline! (soon you will learn about it)
Entry & Exit Rules
The entry will generally differ as I use unique tactics on each and every trade because none of the trades will ever be the same, but for the exit and risk management I use a definite exit area which the DC helps me with and I use structured position sizing which you will learn about in the next post about this system.
For the position sizing, I expose the account based on the following parameters,
5% of the balance for conservative trades
10% of the balance for moderate trades
20% of the balance for aggressive trades
Here is how that works... if I have 10,000 to trade with I would open 0.5 lots of conservative, 1 lot for moderate and 2 lots for aggressive trades, if my balance drops to 8,000 then I would trade with 0.80 lots for a moderate approach and 0.40 lots for a conservative approach... as my balance rises so does my position size and as it drops so does my position size.
I rarely will open an aggressive trade FYI.
And as for my profit targets, I focus on achieving a specific weekly % all year long and apply the law of compounding to my advantage, below is an example:
As you can see the power of compounding is pure magic! 6.5% per week turns 1,200 into 5,107 in just 24 weeks! but... in 52 weeks (1 year) it turns that same 1,200 into 29,785!
Want to learn directly from me? Shoot me a message or just leave a comment below!
Also let me know if you have any questions about the system and make sure you subscribe!
LAST UPDATE 10.2.2020
This content is strictly for informational purposes only and does not constitute investment advice. Trading any financial market involves risk. Please read our Risk Disclosure at the bottom of this page to make sure you understand the risks involved.