Trading System TS01-01

Grade: Experimental

I've been fiddling around with pivot points lately. These are price points where the price is likely to consolidate and form stronger resistance and support levels. I decided to try designing a very simple system to illustrate for myself how pivot points perform. This system uses a "five-point pivot" each day to enter positions.

Rules

1. Enter a short position when the price drops 15 pips below a support line; place the stop-loss 15 pips above the support line and a trailing stop 20 pips behind the price. Take-profit is optional at 30 pips before next support price.


2. Resistance rule: buy when the price climbs 15 pips below a support line; place the stop-loss 15 pips below the resistance line and a trailing stop 20 pips behind the price. Take-profit is optional at 30 pips before next resistance price.

Goal

The goal of this system is for me to design, backtest and try out a simple pivot system.