Black Sheep wrote: Thu Apr 16, 2020 5:10 pm
Hi All,
Here is my contribution to the absolute beginner into trading.
It can be daunting and even noxious when you are a beginner to figure out what works what doesn't and meanwhile time and money (and sometimes your mental sanity) can be easily wasted trying to pick/understand some "advance" strategy or indicator, etc...
I am sharing a simple no-frills approach to make consistent profits applying these simple rules. Here is the Setup for the trading strategy -
The instrument/symbol: EUR/USD M5
The indicator: Pearson Spearman Correlation (attached)
How to trade: I use the Pearson Spearman Correlation Indicator and It has given me consistent returns. Timeframe: 5M, pair: EURUSD. I trade the first three hours of the London open and New York open markets to ensure volume. I observe and use for signalling the levels +0.9 (Overbought) and -0.9 (Oversold), so that when it breaks down after crossing +0.9 SELL, and when it breaks up after crossing -0.9 BUY. NO REPAINTS !!!
Note: I buy/sell on the signals with a target of 100 points and statistically every move is more than 100 points, once the target is achieved, one can be done with trading for the day right there. Or alternatively, follow the trade to the opposite signal to exit the trade.
Please, refer to the below chart image for a visual representation of the idea - IHMO - less is more, furthermore... Intelligence is not the same as critical thinking—and the difference matters.
Hope this may help and safe trading,