Good day forex trading koalas.
Welcome to another review of The Koala System for forex.
In the last review we observed trend like conditions that allowed the system to harvest up to 6 standard opportunities. The 200 EMA proved to be useful again as it gave warning of potential support and resistance areas.
Looking at the EUR/USD 15 minutes chart above for last week, we see 6 opportunities presented.
Did you notice a difference?
Yes. This review is based on the experimental take profit value of 30pips. After testing for a few weeks, i will like to touch a little on this. The idea of a 30 pips take profit came from my observations and also from users who commented to me that the current market situation is often tight and 50 pips may be risky at times due to the possibility of the currency pair turning direction before reaching.
Using the 30 pips take profit value, the rate of successful opportunities presenting themselves is probably higher. The red zones nonetheless remains so due to conditions violating The Koala System rules entirely.
Having said so with a 30 pips take profit, we need to have at most a 30 pips stop loss to maintain at least a ratio of 1:1 for the win lose ratio. With a tighter stop loss, we cannot afford to be too inaccurate in our entries. This is why proper planning of your trades and proper money management is important.
This week the 200 EMA served us well again, serving as a support and resistance often. Let me know if you have opinions. Remember we are learning forex together 🙂