CHOROS System For MT4 Intro
From our screenshot here to the CHOROS System For MT4 we can imagine that it is an easy system or not a big deal but actually the manual of that system is way more than 160 pages, and here we will work on summarizing all that to you just in one article looks interesting, right?
From the first sight we on our GBP versus the USD chart here on the 1H time frame we see that the system has four different set ups of the moving average which looks to be:
simple close 35 moving average ( the black one )
Exponential close 50 moving average ( the saddle brown one )
Exponential close 10 moving average ( the SlateGray one )
Exponential close 5 moving average ( the DarkSlateBlue one )
So, from that we and you can understand that the CHOROS System For MT4 mainly depends on the moving average in its trading, but let us see what is the difference that make its manual so big by learning how to use it and see its trading conditions!
How to use CHOROS System For MT4
We have the trading rules of the CHOROS System For MT4 divided to many stages as the following:
1- trading sessions if you are looking to Overlap the USD pairs then you should be trading in newyork or london time ( trading session ), for the Japanese yen overlaping also you should trade in london or the asian session , and it is well known that the euro works the best in frankfort time but for normal trading not overlaping which means the opposite as the USD, and JPY rules.
2- The second rule is the time frame that you will be trading on. The CHOROS System For MT4 is made for the fifteen minutes time frame only otherwise you will be testing it on your own risk. Nevertheless you can still use higher or lower time frames to exit your trades or checking the main direction but the point is the entry must be based on the fifteen minutes time frame only.
The best frames for depending on their support and resistance areas to exit your trades would be the one hour time frame and the daily time frame as well. You can run touch trades while using the 1H or Daily time frame and that's the only exception in the CHOROS System For MT4 regarding the touch trades, still the trade should match the P|A on the 15 minutes time frame.
3- Moving to the set up of your chart and you need to focus here as it is an important point, and the whole article is by the way as it is the summary of more than 160 pages so you need to read with focus.
You can have only one main chart for each main or major trading pair or currency/ies and you are welcome to have up to three small charts.
4- at this point we will speak a little bit about the entry point and opening your trade
All of your trades should follow the current trend and that means if there is a bullish or bearish correction you should consider it as a trend and take your trade in that way, or in other words you trade what you see not what you expect!
As we told you above that we have two big moving averages which is the 50 and the 35 one and these ones you use to related or know what is the current trade of the market uptrend or downtrend, and that means when the price is above these two moving averages that means you should look for buy trades only, and once the price go below them that means you are aiming to enter sell trades only.
Having that said the two small moving averages should also be above the main ones or below them to support your trade, you can trade on the first touch to the Exponential close 10 moving average ( the SlateGray one ) only if you were able to catch the first touch, and if you were not able to trade on the first touch you can trade on the second one with a stop loss of nine pips/points whoever is bigger on your charts.
That previous paragraph that explains trading on the 10 moving average rules does not apply for the 5 moving average, and for the sell trades it is the opposite exactly of what we just said for the buy trades above.
You need to understand that the CHOROS System For MT4 is not flexable which means you have to follow the trading rules a hundred percent and there is nothing called I am testing, or you can do that as much as you wish on your demo account.
5- Risk rules
If you had five successfully trades one after another stop trading for 24 hours at least, same as well if you had three losing trades one after another stop trading for 24 hours then come back to be able to control your feelings. Regarding the losses trades if you lost two one after another rest and walk for one hour before taking the 3rd trade that might turn it to be a profitable one.
6- Stop Loss rules
You should not use more than 15 pips stop loss and if it is always 15 and not less sometimes that means there is something wrong and you need to study again because, it can't be the same stop loss for different currencies, or trading pairs every time.
7- Take profit rules
the CHOROS System For MT4 for taking profits are simple five steps;
The first take profit strategy is to move the take profit to the previous bar farthest point plus the spreads the exception here may apply if a strong line is met or broken like the 50 or the 35 for or on retracing case.
When you are in profits and the price is near one of the two strong moving averages make your stop loss lower and lower as the price might jump hardly from one of these lines to reverse eating your profits and hitting your stop loss. When you get well experienced with that strategy you may exit automatic once you see the price hit the 35 or the 50 line without waiting to see if the price will reverse or not.
Don't be greedy waiting for more profits and always remember that there will always be new trades any moment you feel that the price will reverse leave your trade and take your profits that is not a bad thing. Whenever you see or feel from your experience that the price will reverse just leave your trade and always note that 20 pips as profits from that strategy are great.
When you find that there are strong news in the day you are trading in try to no bother yourself by continue trading especially in the non farms payroll days as the market chances never ends but you can kill your account by mistakes.
8- Now it is the right time to move to locking up your profits for safer trading, let us see how:
Always move your stop loss while the price is moving to make sure that you will have a low loss or a good profits but don't be moving it for just moving it at least keep a distance to the last candle higher or lower based on your trading position whether a buy or a sell trade. Especially when there is a big candle that will work well for you, and if that strong candle already broke a level like the 35 or the 50 by enough distance move your stop loss to be above or below that level directly so that if the market is moving very fast whether it gets you huge profits or small profits but no loss.
9- Avoid the market in the slow and ranging days if you are a beginner still, but if you are a very experienced trader you can still trade in the ranging slow movement days.
CHOROS System For MT4 Pros & Cons
By writing about the CHOROS System For MT4 I was very interested while I hate the repainting indicators, but as there are many conditions to under and leave your trades I believe that it deserves a try if you do not have a specific trading strategy yet but make sure that all of your tests go through the demo accounts for a while first and not less than 300 trades to decide trying it on a live account.
The only disadvantage in that system is that the moving averages are repainting indicators, and here is what we saw when we tried to add supply and demand along with the CHOROS System For MT4.
As you can see the buy trade appeared on the S&D trading strategy before the CHOROS System For MT4 by big distance.
Summary of CHOROS System For MT4
The summary of that article will not be as big as what we wrote but just a small reminder that you need to go through all the written steps to get any results from the CHOROS System For MT4 and don't say that one rule won't affect. No, if you mess up anything it will result in affecting the real results that you should have.