Forex traders usually look to time changes to grab a series of profits. That is why they tend to seek for near-term strategies which could help them make money from the smallest market waves. Of course, “high risk - high return”, we don’t encourage you to try risking all your balance to collect short-term profits since it’s only suitable for professional traders. However, today, we still want to introduce to you a new developed day-trading system – The “Golden Eyes”.
The “Golden Eyes” is a short-term trading system invented to seek for rebounds. This system consists of three indicators: a swing spotter, an ADX (Average Directional Movement Index) and a candlestick timer. The swing spotter is the main indicator that will confirm the rebounds by generating up and down arrows, representing up and down swings. The ADX, which is an indispensable part of this strategy, is used to define whether the current market trends are strong or not. Finally, the candlestick timer (named “P4L Candle Time”) is an additional indicator counting the remaining time of candlesticks to help traders always be ready for new signals generated at the next candlesticks.
According to the developer, this strategy works best on M15 chart. We have carefully tested the Golden Eyes system with 50 signals and received a quite impressive result : about 80% win-rate! If it could keep pace, this technique should be listed in top profitable short-term trading systems.
How to trade with the Golden Eyes
After adding all the required indicators, you need to wait for new signals to be generated. When a down arrow appears and the ADX line is above 25, a bearish signal is confirmed. Conversely, if an up arrow appears and the ADX line is above 25, we simply enter the market with a buying position.
The stop-loss level should be set 30 pips away from the entry. The exit point is depended on the swing spotter. Anytime the indicator forms a new arrow, you can exit the market.
Please note that this strategy is most useful in consolidating market conditions as it’s used to find tradable swings, but you shouldn’t trade with this technique in Asian trading session because the swings are very choppy. The best time to apply it is in the European session.
The pros and cons of the Golden Eyes
Simpleness is the major convenience of this technique. You don’t have to check dozens of complicating entering rules when opening positions like other indicators. Besides, it has an automatically alert alarm which will sound when signals appear, enabling you to avoid missing trading opportunities. However, the Golden Eyes has a disadvantage. The indicative arrows are based on lagging indicators, so that they could disappear if the two candles next to them are not closed. Therefore, it’s very important for you to wait for the arrows to be fully formed before making any trading decision.
“High risk - high return” is a basic principle of trading. The Golden Eyes strategy, besides all its advantages, also has potential risks. We suggest that you should only trade with this system if you are master at technical analysis and have practical trading experience. Moreover, money managing and psychological controlling methods should be combined to minimize the loss and maximize the gain.