New Experiment

This is a crazy idea I just come up with. It's about creating a ridiculously simple, no brainer trading system that everyone, even kids can follow. No complicated analysis or thinking, no complicated lines and fancy indicators involved, just plain simple stuffs.

Here's the setup:
1. H4 chart
2. LSMA period set to 30, applied to close
3. Stochastic set to 30, 1, 1 and set the levels to 25, 50, 75 instead of 20, 50, 80
4. Heiken Ashi (optional)

The rules are simple:
For buy position:
1. If it's trending down, enter when LSMA turns up and the color changes while stochastic coming from the bottom climbing over 25. Exit when stochastic reaches 50 and price unable to continue, or hold if it turns into reversal.
2. If it's trending up, enter when price is pulling back and bounced at the LSMA. Exit when price crosses down LSMA.
3. Always enter as close as possible to LSMA.
4. Cut loss when price plays across LSMA and LSMA turns the other way.
5. Lock at BEP +1 as soon as you have more than 20 pips profit (or better yet, just close the position :D)

For sell position, just do the opposite :)

I'll start testing it on Monday and see how it works within the next few weeks, focusing on GBP/USD and EUR/USD. Let's see how it turns out...