42# King Cobra Breakout Trading System
Submit by Maximo Trader 27/06/2012
Entry & Stop loss:
#1 The 1st reversal of a Red dot to a blue dot use the Blue buy dot to place your Buy-Stop order at top of D1 bar. On the 1st reversal from a Blue dot to a Red dot use the Red dot to place your Sell-Stop order at the bottom of D1 bar ~ 20 - 50 pips above or below plus the spread.
(#1B) You also can use 50% of that daily trigger bar to use limit orders to eliminate risk while if you get filled you’re going to be getting in lower or higher than the buy/sell stop order + you’ll be cutting your S/L by 50%. (You also chance missing trade opportunities)
#3 If you don’t get filled on your stop order and the next days close you still have the same color trigger dot with a lower/higher close than the previous day you simply adjust your buy/sell stop order accordingly to that bar.
#4 Use your strongest support or resistance level for your Profit Target, or, 2 to 1 Ratio. Example: 100 pip S/L 200 pip T/P, and trail your S/L with the close of each day’s dot. After 3 or 4 days you’ll be close tobreak even.
#5 Use your opposite Red or Blue Dot or the high/low of that day + 5 pips for your S/L.
(A) When the daily bar exceeds the ADR (average daily range) use caution when placing your stop order. Meaning, if you have a 250 pip bar from the high to the low on the Euro do you really want to be placing a sell/buy stop order at the top or bottom of that large move?
(B) If you get a sell/buy dot trigger at a major support/resistance level common sense tells you not to buy into strong resistance & not to sell into strong support. Were looking to buy near the low and sell near the high.
(C) All sell signals at a major support area + all buy signals at a major resistance area will be a NO TRADE!Common sense tells you that if we just dropped 500 to 700 pips you’re NOT going to be looking to sell, instead you’re going to be looking to buy. “Buy The Dips & Sell The Rallies.”
(D) If you get a sell dot within the next day or 2 after entering long you must consider closing out your trade and observing the chart to see whether or not you should go short. This is a “WARNING!!!” This means that the last bar has just closed higher than the previous 4 bars. DON’T TRADE AGAINST THE TREND? If you see a Pin Bar to go against the position you’re in ~ Get Out!!! Both of these situations are warning signs to close your position. *** Danger Get Out! ***
(E) When you go from a red dot to a blue dot then to a red dot again you’ve just started to enter a ranging market know as a cluster with the highs and lows of each day close to one another. You must avoid entry at these times and wait till you move out of the range to either buy or sell a break out or to wait till the next reversal entry–after a 300 to 500 pip/point break-out of the range to go long or short at the first sign of a reversal
King Cobra system forex trading system: Template and indicators
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