Forex trading strategy :

The 3 Duck’s Trading System:

The system is fairly straight forward and easy to use.Like a lot of trading system it will be more productive when prices are moving in one direction and not stuck in a tight trading productive when price are moving in one direction and not struck in a tight trading range. of course this system has losing trade and losing runs, but with proper money management and good discipline I'm sure this system will keep you out if bad trades and give you a great chance to make profit in the Fx  market. One of the nice things about this system is it will quickly tell you if prices are in an up or down swing phase and stop you from guessing! it will also allow you to decide to be a bull or a bear and trade in the  direction of that trend. There are 3 charts involved in this system: a 4hr chart, a 1hr chart and a 5min chart. There is 1 indicator, a 60 period simple, moving average (60 sma) plotted on each chart. There you go, its that simple.

 

 How it works: 

step 1- First Duck
The first thing we need to do is look at our largest time-frame (4hr chart) and see if current prices are above or below the 60 sma. From this chart we can see that current price are above or below the 60 sma. This tells us that we maybe looking to sell.

Step 2- Second Duck
The second thing we need to do is drop down to our 1hr chart. We need to see confirmation.

Important: if the current price was to be above the 60 sma on this chart we could not move on to

Step 3- Third Duck
From step 1 and 2, current price need to be below their 60 sma's on each chart. We are now on the 5 min chart and we are looking to sell when price crosses below the 60 sma. For extra confirmation we should let prices break the last low on  the 5 min. chart. This would mean that price will be  below their 60 sma on all 3 time-frames, therefore all 3 Ducks are lined up in the same direction

Stop-Losses: This is where you can  make  this system your own. if you are a short term trader you may  want to put your stop-loss above the highs on the 5 min or the 1hr chart. If you are more from entry. it all depends what type of a trader you are, so you decide!  Another "trick" that may help you preserve capital, if you do sell and price get back above the 5 min 60 sma by 10 pips (not a good sign) you may want to cut your losses short before your stop-loss. But if you are a longer term trader this may not be a big deal for you.

Summary: The above example was carried out when the GBP/USD trading  lower so obviously we where selling - the system work just as well for buying opportunities, just look for price to be above the 60 sma on all 3 time-frames, starting with step 1 again.I like this system a lot as it does not try to out-guess the markets movements and pick tops and bottoms. The system will quickly tell you to be a buyer or a seller. its a good honest system that tries to follow prices. This system works better on currency pairs such as the EUR/USD and GBP/USDn, but there is nothing stopping you from plotting  this system on any pair, but as we know some pairs act differently to others. The best time I found for trading this system is the European and US session. Take care to watch what is going on around you - economic new releases, holiday etc.

                                                                 
                                                                                                   souce:babypips