A Profitable Strategy

I just want to share a strategy that makes me money. Carefully for your trading make sure you have good knowledge on forex trading.

You should trade with DEMO account before doing real trading

RULES: 

  1. Trade with leverage 1:20 
  2. Target uptrend stocks in the S&P 500
  3. Time-frame 1-day
  4. 5% capital per trade and MAX 10 trades ( It should be 5% if the invested capital < $2000 and  3% if invested capital > $2000)
  5. Enter:
    • Price over 200 SMA
    • RSI2 ≤ 5
    • Using limit buy order with price = current price - 2%
  6. Review everyday:
    • Take profit if the change > 2% or it is 10 day-long
    • Stop loss if the change < -7% or it is 10 day-long

Why leverage 1:20?

I see a lot of people using leverage 1:500 but I only use leverage 1:20 for my trades. It helps protect my account from ZERO balance

Target uptrend S&P 500 stocks

S&P 500 stocks issued by large-cap companies. The companies have good businesses they will never fall down too fast in one of few days.  The list of S&P 500 companies

1-day Timeframe

  1. I don't want to busy with forex trading. I just need about 30mins to 1hour/day for the trading
  2. The target of the strategy is stocks-market. it only open 6hours/day not whole days

Risk management 

It depends on your capital and the risk you can take with your money. But all open trades should take amount ≤50% of your capital.

My case:

  1. My capital < $2000 then I need to use 5% per trade if not I could not place my order
  2. MAX open-trades is 10 to make sure it takes a total amount ≤ 50% my capital

Enter trade

  1. The price over 200 SMA to indicate it is up-trend market
  2. RSI2 < 5: The price expected will be up again

 

Results

My account opened on 09/28/2020 with started amount about $450

My report on 01/06/2021:

My totally deposit: $1857

My withdrawal: $100

Currently balance: $2327

My Profit: $570

% Profit: 32% 

Result on 01/06/2021

to be continue