Trading Strategies and Mechanics 2

OK its a high time i outlined my forex trading strategy first of all i would like to say it outright that im a trend trader, as trading with the trend gives you more bang for your buck. for newbie traders its important to note that there are three types of markets; trending ,directionless or rangebound, and volatile markets.When devising a strategy you should put into consideration what type of market action that you are trying to capture

the simlest strategies usually the best strategies sually complicate their trading strategies and usually end up confused and as a result end up loosing alot of money in the forex and futures markets. for my trend following strategies i decided to use moving averages, as they are a study that is derived from price action. in my case i use the 55 exponential moving average or ema to setup the trade for either a long a buy setup or a short a sell setup. In principle, when price closes above the 55ema, ill be looking to buy, when price closes below the 55ema ill be looking to sell. that is how the setup looks like. for the entry use 3other emas. namely the 7,14,and 21 emas respectively. Basically, when the>7ema >14ema >21ema i pull the trigger for a buy, provided price is above the 55ema (remember the setup).When the 7ema<14ema<21ema i pull the trigger for a sell, provided price is below the 55ema. When such conditions occur in any market, my bias is usually fully bullish or bearish.
i usually look to exit a buy when the 14ema crosses the 7ema. i have this strategy condensed into an indicator. i have backtested this strategy on alot of currency pairs and indices and the strategy is amazingly profitable! i have also forward tested the strategy for over 7months since may 2010 and the results are impressive to say the least! since the purpose of this blog is to journal any trade that i take with my strategy, ill share atrade setup that i took on a hour gold chart

Trading Strategies and mechanics

Hello, ive been trading the forex and futures markets for almost a year now and it has been a hell of a journey!I therefore decided to create a blog whereby ill be posting my trades using the trading strategies that ive come up with. i will use this blog as a journal inorder to keep myself responsible and accountable as i constantly execute what i believe is my edge in these wild wild markets!
All that i can say from experience is that trading is not as easy as they make it out to be. Initially most people get drawn to trading because they think they will get rich overnight. personally what drew me to trading is the fact that the forex market is the most liquid financial market in the world with well over four trillion dollars traded on a daily basis. i was instantly hooked. i have never looked back ever since the figures started rushing into my head i had finally found my cash crop! wonder how much i can make on a daily basis!
Anyway the euphoria  and massive adrenaline rush died down when i lost my first investment to the markets! it was the most painful and the most expensive lesson i have ever learnt! I realised that in this business that there are sharks that can smell your blood from a mile away experienced traders that wait for newbies and noobs and suck them dry! long story short it has and it is a journey worth sharing and documenting and i hope to share more as we proceed onwards.
The journey continues....