FX1D0 - a trading system for making money where everyone else loses
Hello, fellow forex traders! We have all more than once seen how, after a new daily candle opens, price goes against the main trend, draws a shadow, and then reverses and moves in the other direction. In principle, this is the basis of the market, otherwise candles would not have tails. Can you make money from this? You can. There is a specialized FX1D0 strategy aimed at working with such setups. Today we will learn how to trade it.
Characteristics of the FX1D0 trading system
Platform: Metatrader 4
Currency pairs: GBPNZD, GBPAUD, EURNZD, GBPCAD, GBPJPY, EURAUD, EURCAD, EURJPY, GBPCHF, GBPUSD, AUDJPY, NZDJPY, CHFJPY, EURUSD
Timeframe: H1
Trading time: London and American sessions
Recommended brokers: Roboforex, Alpari
Reference materials
- Instructions for installing strategies in MT4
- Working with pending orders
- ProTrader assistant expert advisor
- Moving to breakeven
The idea behind the trading system
We all know that a regular daily candle has: a body, a shadow on one side, and a shadow on the other. As soon as a new day opens, price sometimes moves for some time in the direction opposite to the main trend, and then reverses and moves in the other direction. Moves where? Correct, in the direction of the DAY OPEN PRICE.
And then there are options: price can pass through the day open price and continue the trend, or it can bounce off the open price. In both cases, the daily candle open price acts like a magnet. For us, in principle, it does not matter where the quotes move afterwards, because we will use the day open price as a reference point for taking profit.
Rules for entering the market
- London session. 30 minutes before it starts, we review the charts for possible signals.
- For entry, the price must be between the moving averages. Acceptable: below the moving averages for buys, above for sells.
- Before entry, we check the distance between the ATR channels. If it is very small (less than 20 points), it is better to skip the entry.
- It is recommended to enter with pending orders.
Buys:
- Fast MA is above the slow one
- The day open price is above the price at the London open
- Stochastic is below level 70, directed upward at the moment of entry
Sells:
- Fast moving average is below the slow one
- The day open price is below the price at the London open
- Stochastic is above level 30, directed downward at the moment of entry
Stop-loss and Take-profit
Stop-Loss:
- a couple of points above/below the High/Low of the entry candle or the nearest minimum/maximum
- the next ATR channel
Take-profit:
- 10 points
- the nearest ATR channel
- round level 00 or 50
- the day open price (the most optimal option)
- breakeven at + 2 points after 7 points of profit, then trailing stop
- we exit at the end of the day
Money management
Since the percentage of profitable trades in this FX1D0 system is quite high, you can use up to 2% of your deposit per trade (do not forget that there are many trading instruments, so you should not inflate the % too much). To calculate the lot, you can use our mobile app.
Dashboard
You can monitor possible FX1D0 system signals on all pairs at once without switching to different charts. For this, you can use the FX1DO_dashboard template. Just load it on any free chart and you will see a signal panel like in the screenshot above.
For the data to display correctly, it is better to leave the chart with the loaded Dashboard open for a couple of hours so that all the necessary information has time to load.
Column values:
- Pair - currency pair
- Spread - current spread
- U/D - current trend. If the square is green, it means the fast average is above the slow one; if red, the opposite is true.
- Zone - if the U/D square is green, and the day's opening price is above the current one, and the current price is below the 13 MA, then it lights up green. If the U/D square is red, and the day's opening price is below the current one, and the current price is above the 13 MA, then it lights up red. In all other cases, blue.
- Sto - if U/D and Zone are red, and the stochastic is also above the oversold level, a red square will appear. The pair will turn gold, showing that there is a signal. The same applies to buys: if U/D and Zone are green, and the stochastic is below the overbought level, a green little rectangle will appear.
- Cur. P/L - current profit/loss for this pair
- Do Dist. - distance in points to the day's opening price. Displayed only if the other entry conditions are present
- Atr Spread - distance between the ATR channels. Displayed only if the other parameters signal an entry
- Last Alert - time of the last signal for this pair
The remaining columns show signals on other timeframes.
Conclusion
The FX1D0 trading system has gained considerable popularity on foreign forums thanks to its profitability. Specifically, due to the high percentage of winning trades. Among its drawbacks, it is worth noting the small number of trading signals, which is compensated for by the large number of tradable instruments. Understand the idea underlying this system and, if you wish, you can replace the indicators that come with the system with your own. Or even do without them altogether. After all, the main thing in any strategy is the idea on which it is based.
Download the FX1D0 strategy files
Sincerely, Pavel Vlasov
TradeLikeaPro.ru
Hello, fellow forex traders! We have all more than once seen how, after a new daily candle opens, price goes against the main trend, draws a shadow, and then reverses and moves in the other direction.