Trade Rules

These rules are very close to ours. I have been asked by someone to help with their trades rules which is not possible. All I can do is say what mine are. These are our bread and butter trades, those that do not comply with this will be very few and far between. They should either have solid logic that we can live with or be part of a trading strategy that we previously used but is not the main focus now.

General

I will trade according to what I identify as the flow of the market. I will analyse EUR, GU, EJ prior to the trading day. I will look to trade the currencies that comply with my analysis. I accept that between the time of my initial analysis and London open circumstances may change and I will take that into consideration.

I will research the methods, currencies and time of day that I choose to trade (20 days each in uptrend/downtrend/sideways markets). This will assist with the background to be comfortable in my method.

Rules

I will:

• do analysis from D, 4hr and 1hr and enter from 15 min and if necessary 1hr candles.
• look for flow from my 3 higher time frames. Are we above or below 8lwma, has RSI crossed its signal line (8 RSI, 8sma), above or below the RSI 50 level. Do we have engulfing closes or completed candle patterns (higher low/lower high, double top/double bottom, morning/evening star). Big picture trend in line with D, short term counter trend from 4hr/1hr.
• identify support and resistance levels that can influence the trade
• look for divergences
• enter trades from 15 min chart, candles that open and close opposite side of 8lwma or test the 8lwma
• always use stops, a few pips beyond the last swing high/low. Typically 15-25 pips on EUR and GU, 25-35 for EJ.  
• assess exits depending on range of the day, typically at support/resistance levels, psych levels and pivots.
• look to trade at three main times around London open, pre/early US and post US news
• trade at other times only if past analysis supports this e.g EJ during late Asian session/pre Frankfurt open
• trade with the trend as identified by higher time frame analysis and buy above/sell below 200 ema on 15 min. This ema is a guide and price action must support each decision. Above/below any ema will never make it a trade, proper analysis does.
• trade counter trend from proven support and resistance levels and W pivots. Only when price has proven over a period of several hours that it does not want to continue in trend (specifically not 1 x 1hr candle). I will look to assess divergences and candle engulfing closes for patterns (higher low/lower high, double top/double bottom, morning/evening star) on 1hr that by their very definition require several hours to complete.
• accept system compliant losses as the risk of doing business. I will critically assess each loss for mistakes in execution or for possible improvements to methods. I will not accept none system losses (or none system wins) and will strive to avoid repeating errors. I fully believe Discipline is the Bridge Between Goals and Accomplishments. None system trades will not get me to my goals. 

These are the general trade rules I follow, amend them to fit your trading circumstances.