Floor Traders Method Trading Strategy With No Stop Loss

This method is called the Floor Traders Method Forex Trading Strategy With No Stop Loss.

It is a variation of the floor traders method forex trading strategy. The only difference is there is not initial stop loss placed when you enter a trade.

A trailing stop loss is activated when your trade is in profit and I will suggest some ideas on how this can be done.

Disclaimer: As all forex trading strategies on this, site, all these systems should be treated like ideas that need to be tested out and I do not recommend you testing this method out on a live account.

How The Trading System Works

The floor traders method forex trading strategy is a moving average cross-over forex trading strategy consisting of a 9 ema and  18 ema.

For a buy scenario, you wait for 9 ema to cross 18 ema to the upside and price to move above and away from the tow moving averages for some time as it to escape from the two exponential moving averages but after a while, price will fall back down to touch one or both of the exponential moving averages.

What you do is watch for a rebound or price or a rally of price once prices start touching the exponential moving averages.

One way of buying on the rebound is to watch out for forex reversal candlestick patterns. For a buy setup, you need to be watching for bullish reversal candlestick patterns.

Now, for a sell trade setup, it would be the exact opposite of a buy trade setup.

 

Buying Rules of The Floor Traders Method Forex Trading Strategy With No Stop Loss

  1. 9ema crosses 18ema to the upside and price moves totally away and up from the two moving average indicators.
  2. When price falls back some time later and touches the 9ema or the the 18ema, watch for a bullish reversal candlestick.
  3. place a pending buy stop order 1-2 pips above the high of that bullish reversal candlestick
  4. Do Not place any stop loss
  5. Activate a trailing stop loss as soon as a candlestick closes below the 18ema line and place it at least 5 pips below the low of that candlestick. Continue doing that for each subsequent candlestick that closes below the 18 ema line until you get stopped out with a profit.

 

Floor Traders Method Forex Trading Strategy Buy Trade Setup on 1hr AUDUSD Chart

 

Selling Rules of The Floor Traders Method Forex Trading Strategy With No Stop Loss

The selling rules of the floor traders method forex trading strategy with no stop loss will be the exact opposite of the buying rules given above:

  1. 9ema crosses 18ema to the downside and price moves totally away and up from the two moving average indicators.
  2. When price moves back up some time later and touches the 9ema or the the 18ema, watch for a bearish reversal candlestick.
  3. place a pending sell stop order 1-2 pips below the low of that bearish reversal candlestick pattern
  4. Do Not place any stop loss
  5. Activate a trailing stop loss as soon as a candlestick closes above the 18ema line and place it at least 5 pips above the  high of that candlestick. Continue doing that for each subsequent candlestick that closes below the 18 ema line until you get stopped out with a profit.

floor traders method forex trading system sell trade setup on 1hr audusd chart

Advantages of The Floor Traders Method Forex Trading Strategy With No Stop Loss

  • good profit making opportunities in a strong trending market
  • the removal of placing the initial stop loss eliminates false price spikes that prematurely can take your your stop loss
  • you can pyramid by adding onto more trades and thereby increase your profits as price continue to go in the direction of your trade until you get  stopped out with huge profits locked in with your trailing stops.

 

Disadvantages of The Floor Traders Method Forex Trading Strategy With No Stop Loss

  • risky method with no initial stop loss as price can reverse immediately after you are in a trade so you need to have a maximum loss level which you must be willing to take (If price goes past this loss amount, I’m out!) therefore I do not suggest you use this system with a live money account.
  • this is a trend trading forex system so any flat or sideways market, you will have too many false signals.

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