Daily Trend Surfing is a method I've been developing and researching since October 2005. I am still refining it, but since it's 90% complete I am pleased to talk about my trades together with all the Currency Market factory community. I will be applying my way to two currency pairs in this journal, the GBPUSD and XAUUSD pairs. I will use real money on an Oanda account. I will be taking trades at predetermined times, usually around 3am EST and 9am EST..
What is?
Daily: There is a capability to take a trade every day of the week. Trades are closed prior to 5pm EST..
Trend: Successful trades are highly determined by whether or not a good trend was established. Choppy market conditions cause my way to neglect. Thus, a nice market volume is essential. More about that in a later section.
Surfing: Why surfing? First, its major hobby of mine and I can not help but find parallels while placing up rides that are smooth, in the soup and in the market. Just as in surfing you will find the following major elements:
1 -Watching for the break-
Trade directions are decided based on pure price action, specifically by examining the direction of the currency pair for a 3-hour period prior to the trade. The question to answer in browsing is whether the wave is breaking into the right or left. In trading we have to understand whether the pair is breaking down or up.
2 -Testing for strength-
Here on the east coast a lot of our waves are just mush. They frequently don't offer the strength to lift your own board. Once I am in position with all the wave behind me and I know whether I am taking it right or left, I will angle the board and start pushing down from the tip of the board with my entire body weight to have a feel for whether or not it could push. The analogy to investing my method is that I put my entrance point a certain distance away from the price level, in order to check whether or not their is sufficient continuing movement to propel the trade in the direction I have already called. If it could, I then take the trade, akin to standing on the board. 3 -Outcome-
You have a good ride or it dinks out under you. Always set stop losses as well as take profits. Adjustable take profits are even better.
4 -Staying out of the water-
I have created a listing of news-based filters. If specific news events will be released I won't trade. Furthermore, if there isn't enough news being released, there won't be sufficient quantity, and I won't trade.