River Trading (Part 1)

WHAT IS RIVER TRADING?

First, get a glance at forexfactory forum http://www.forexfactory.com/showthread.php?t=27991 , that is the originator of the river trading and this gave me an idea of developing 'my new simple method'.

Dont forget to watch the VIDEO, this is the link http://www.divshare.com/download/436759-6f3

Finally, the originator template looks like this:



Its involve too many lines and indicator, therefore i try to modified the entry and exit strategies such that it's simple to me and everyone... after doing some back-testing and forward testing seems like what fits me the most is this:



Simple,Nice and Clear...

SO WHAT IS THE ENTRY RULES..!!

Nahhh...., before that i will tell you on the concept on how i develop this new trading system. The heart of river trading is to BUY on a candlestick which has an open, highest, lowest and close above the river and to SELL on a candlestick which has an open, highest, lowest and close bellow the river.

Almost forget, the originator suggested this method to be used in TF M15, but it seems like TFH4 works better for me as i have a student life to live..So all of the chart of mine is on TFh4 and only backtest it with TFH4.




As you can see, there will always be losses and gain in this business, but the aim is to make more than what you lose. If you stick long enough with river trading i bet you can profit from this wonderful system.

But, river trading only is not enough, we will need some sort of filter to filter out the good trade from the bad trade. Therefore i add a daily moving average into our chart which is
(SMA6 to the close on TF-H4), result is even better now...

TO BE CONTINUE.........

By the way...this is last 3 days result on AX RIVER TRADING with a profit of 200 pips and floating of +600 pips.