The NiceGuy Ridiculous 7 pips Trading System For MT4 is a perfect trading system for beginner traders who want to learn forex trading besides earning money. Forex trading requires a lot of knowledge and experience; it is wise to follow a trading system and earn money while learning advanced knowledge. Therefore, this strategy would be very effective for newbies covering all trading requirements in both the bullish and bearish market conditions.
The NiceGuy Ridiculous 7 pips Trading System
This trading system is based on moving average with multiple values where we will get a longer view of the market and move to the shorter view and match the long term trends direction.
The forex market is an unpredictable marketplace where no one can say the exact future price of a trading instrument. Therefore, new traders often find trading difficult, and they lose hope by making some consistent loss trades. However, we can increase the trading probability by following the direction of larger players.
Who are Larger Players?
In the forex market, larger players are institutes and banks that trade with millions of dollars. Most of the larger players spend a lot of money on analysis, and they usually take trades on a higher timeframe. Therefore, in this trading strategy, we will anticipate the higher timeframes market sentiment by using a Moving average with a higher value and move to the lower-valued Moving Average.
Let’s have a look at the list of indicators for this method:
- Simple Moving Average (SMA)- value 750
- Simple Moving Average (SMA)- value 500
- Simple Moving Average (SMA)- value 200
- Simple Moving Average (SMA)- value 21
- Simple Moving Average (SMA)- value 13
- Stochastic Oscillator- value (14, 3, 3)
- Daily Pivot Point
The above image shows how the price is trading below and above these MA levels and how the price starts an impulsive move when it breaks these levels.
Moving average is the widely used indicator that shows the overall price direction of a trading asset. In this strategy, the highest moving average value is 750.
The current value of the moving average 750 represents the average price of the last 750 candles. Similarly, the current value of the SMA 500 represents the average price of the last 500 candles.
Therefore, when the price movies above or below these levels show buyers’ or sellers’ domination in the price.
In this system, the SMA value of 750, 500, and 200 will represent the longer-term trader’s price direction, but the high probable trades will come when short-term and long-term traders’ direction matches.
Therefore, we will define the price direction based on SMA values 21 and 13 and identify the price direction. When the price moves above the SMA 21 and 13, the short-term trend is bullish, and when the price moves below these levels, the short-term trend is bearish.
In this trading method, all 5 SMA should provide the same price direction, but we should use an appropriate invalidation and take profit level to make the trading strategy effective.
Bullish NiceGuy Ridiculous 7 pips Trading System
The bullish trading strategy is suitable for all major currency pairs, including the EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, and NZDUSD.
Taking trades based on this strategy is risky on the cross, and exotic pairs as the stop loss are 7 pips for every trade. In exotic pairs, trading costs and spread are high that is often not affordable.
In this method, we will use 5 minutes timeframe to take a lot of trade during the day if all conditions match.
Conditions For A Bullish Trade
- The price is trading above SMA 750
- The price and other indicators are above SMA 750
- SMA 200 moves above SMA 500
- SMA 21 moves above SMA 200
- SMA 13 crosses over SMA 21.
- Price is above the daily Pivot Point.
- Stochastic is above 50
Entry
The trading entry comes when SMA 13 crosses over the SMA 21. It indicates that short term traders became more aggressive in the market to take the price up.
Moreover, as it is a bullish trading entry, you should wait for a bullish candle to close before opening the trade.
Stop Loss and Take Profit Idea
The stop loss for this trading system is 7 pips, and the take profit is 30 pips.
While setting the take profit lever, you can consider the psychological level from where the price usually reverses.
Bearish NiceGuy Ridiculous 7 pips Trading System
The bearish trading strategy is also suitable for all major currency pairs, including the EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, and NZDUSD.
You should avoid trading in exotic and cross currency pairs due to higher spread and trading costs.
In this method, we will use 5 minutes timeframe to take a lot of trade during the day if all conditions match.
Conditions For A Bearish Trade
- The price is trading below SMA 750
- The price and other indicators are below SMA 750
- SMA 200 moves below SMA 500
- SMA 21 moves below SMA 200
- SMA 13 crosses down SMA 21.
- Price below the daily Pivot Point
- Stochastic is Below 50 level.
Entry
The trading entry comes when SMA 13 crosses down the SMA 21. It indicates that short term traders became more aggressive in the market to take the price down.
Moreover, as it is a bearish trading entry, you should wait for a bearish candle to close before opening the trade.
Stop Loss and Take Profit Idea
The stop loss for this trading system is 7 pips, and the take profit is 30 pips.
While setting the take profit lever, you can consider the psychological level from where the price usually reverses.
Conclusion- Trade Management Idea
Let’s have a look at what trade management rules we should follow for this strategy:
- As it is a beginner trading strategy, make sure to practice a lot in a demo account before trading on a real account.
- Never take more than the affordable risk per trade.
- Always use stop loss and take profit in every trade.
- Always follow the direction of the higher moving average.
- Don’t lose hope after making a consecutive loss. Take a break and come to trade when the market settles.
