- January 13, 2023
- Posted by: Forex Wiki Team
- Category: Forex Trading System
System Levels Trading Review
System levels trading is a very straightforward system, and this is going to be an important factor in your trading success.
The simplicity of this system is going to work in your favor. You will find the signals to be reliable and frequent.
The System Levels Trading is visually appealing, while at the same time giving you very clear signals to buy or sell.
You will instantly know if you should be buying or selling. I believe this is an important feature to have to make a system successful.
Best Brokers ListÂ
The system levels trading works with any broker and any type of account, but we recommend that our clients use one of the top forex brokers listed below:
System Levels Trading Settings
The System Levels Trading uses 4 indicators.
Each doing their own job working together to give you the best signals.
Array:
This is the main indicator, and it does the heavy lifting. It will tell us what direction to trade and give us the entry signals.
Arrows:
The Arrows are part of the Array they aren't technically a separate indicator, but they point out when the Array lines up and clearly show us a signal.
Tend:
This indicator is the direction we trade. Green Trend we look for buy trades, red Trend, we look for sell trades.
Validator:
This validates the arrow signal. Once an arrow shows us a trade, the Validator seconds that trade signal by being the same color as the Arrow.
BUY TRADE Rules
Step 1: Identify an Uptrend
The Trend indicator will be green.
The Array indicator will turn all green.
The leading edge of the Array will be above the trailing edge.
Step 2: Look for a pullback
The price drops below the leading edge of the Array and the Array is no longer
completely green. The leading edge (and possibly more lines of the Array) will
turn red.
Step 3: Signal
A candle will close above the Array and the Array will turn all green.
A green Arrow will appear under the price / Array.
The Validator Dots will be green.
Step 4: Entry
Entry will be at the close of the candle which meets all the requirements.
Green Trend / Green Array / Green Arrow / Green Validator Dot.
Step 5: Stop Loss
Place the stop loss just below the market's most recent swing low.
Step 6: Target
Target 1:1 (a target is the same number of pips as the stop loss).
Step 7: Trade management
Once a candle closes above the entry price (in profit), trail the stop loss along
the trailing edge of the Array indicator. As each new candle closes, the stop
loss will be placed below the tailing edge of the Array indicator of that candle.
SELL TRADE Rules
Step 1: Identify a Downtrend
The Trend indicator will be red.
The Array indicator will turn all red.
The leading edge of the Array will be below the trailing edge.
Step 2: Look for a pullback
The price moves above the leading edge of the Array and the Array is no
longer completely red. The leading edge (and possibly more lines of the Array)
will turn green.
Step 3: Signal
A candle will close below the Array and the Array will turn all red.
A red Arrow will appear above the price / Array.
The Validator Dots will be red.
Step 4: Entry
Entry will be at the close of the candle which meets all the requirements.
Red Trend / Red Array / Red Arrow / Red Validator Dot.
Step 5: Stop Loss
Place the stop loss just above the market's most recent swing high.
Step 6: Target
Target 1:1 (same number of pips as the stop loss).
Step 7: Trade management
Once a candle closes below the entry price (in profit), trail the stop loss along
the trailing edge of the Array indicator. As each new candle closes, the stop
loss will be placed above the tailing edge of the Array indicator of that candle.
Time Of Day matters
Many traders like to trade the smaller timeframes like the 5-minute and the 15-minute.
When trading these smaller timeframes, we want to be very aware of the time of day we are trading. If we decide to trade at the wrong time of day, we can experience more losses and wandering trades. Ideally, we want to keep our trading to the London session.
That's 8 am - 5 pm GMT or 3 am - 12 noon EST. The market is going to move the most and give us the highest probability of successful trades.
The image below shows us the EURUSD in the 15-minute timeframe. The green squares show us the London session, and anything outside of the London session is slower, sideways, and generally unprofitable. 90% of traders that message me telling me they have too many losing trades is because they are trading a smaller timeframe outside of the London session.
Once they either start trading a larger timeframe, or trading during London, their win ratio skyrockets.
Conclusion
System Levels Trading is a functional and effective trend-following system. The indicators of the System Levels Trading will give you clear signals and
there should be no doubt about what direction you are trading. Once everything lines up, you can be in the trade. Before trading this System Levels Trading on a live account, I would like for you to try it out on a demo account until you are comfortable with the rules and the fact that it works. Once you are satisfied that the System Levels Trading is something you can make money with, and you do trade live, take a few trades with the smallest trade size possible. Once that goes ok, bump it up to whatever you trade normally. Risk management is as important as the trades themselves. You don't ever want to risk too much on a trade in case you take a few losses. The industry standard is to risk 2% of your account on each trade you take, but you may risk a little more or less depending on what you're comfortable with. Staying in the game forever is the goal, and if you lose too much by not following the rules, trading outside of London on a smaller timeframe, or risking too much on your trades, you will struggle to not blow an account. Follow the rules, stay disciplined, and be prepared to watch your account grow week after week, month after month.
Download the Free system levels trading
We highly recommend trying system levels trading with ICMarket demo account. Also, familiarize yourself with and understand how this system works before using it on a live account.