“The Holy Grail” Trading System



Trading setup

  • Trade on 4 charts: 1 hour, 4 hours, Daily, Weekly (Swing Trading)

  • 55 SMA applied to the close on weekly chart

  • 21 SMA applied to the close on daily chart

  • 34 SMA applied to the close on 4 hours chart

  • 34 SMA applied to the close on 1 hour chart

Trading Rules

Entry Rules

Long entry rules:
  • If price is above the 55 SMA on weekly chart, 21 SMA on daily chart and 34 SMA on 4 hours chart. Then it’s a buy signal.

  • We enter when price crosses above 34 SMA on 1 hour chart. If price already crossed above 34 SMA on 1 hour chart before the buy signal, then we enter when we see the buy signal. Pretty simple, huh?

Short entry rules:
  • If price is below the 55 SMA on weekly chart, 21 SMA on daily chart and 34 SMA on 4 hours chart. Then it’s a sell signal

  • We enter when price crosses below 34 SMA on 1 hour chart. If price already crossed below 34 SMA on 1 hour chart before the sell signal, then we enter when we see the sell signal.

Exit Rule
  • We exit when price closes beyond 34 SMA on 1 hour chart in the opposite direction of our trade.

Stop Loss
  • Set the stop beyond the 34 SMA on 1 hour chart.

Take Profit 
  • We take profit according to our exit signal.

Re-entry
  • If we exit the trade according to our exit rule and price again crosses the 34 SMA on 1 hour chart while there’s still a buying or selling signal exist, then we can re-enter the market.


Long Trade Example:

 
 
 
 



Short Trade Example:

 

 

 

 

You must test this system thoroughly through back testing and by trading it live on a demo account for at least 2 months. After two months of testing if you find it profitable, only then use it on a real account.

Remember one thing, I’m not responsible for your losses.
Location: Bangladesh

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