Fozzy Method only trade daily charts and only EUR/USD, GBP/USD, USD/JPY and USD/CHF. Why these? Primarily because these are the only ones Fozzy has backtested and He has been trading for the last 3 months. He also tend not to trade Monday mornings (Australian time) as prices sometimes gap over the weekend. However, this is discretionary.
On each chart He has an 8 period RSI. He has also has an 8 period MA of the RSI and Bollinger Bands with a 20 period setting, also on the RSI.
Long Entries: When RSI below the middle Bollinger Band. Enter long on the open of the next bar after the RSI has crossed MA from below to above.
Short entries: When RSI above the middle Bollinger Band. Enter when RSI crosses MA from above to below.
Stop loss is the low/high of the previous bar. Move S/L to break even if the price moves greater than 40 pips in Our direction. After the initial 40 pip move use a trailing stop for exits (25 pips).
Fozzy only look at the charts once per day, just before 0.00 GMT. This way He knows which pairs are approaching his set-up. Then place trades if the criteria has been met. That's it.
A simple system that seems to work for him. This method provides a limited number of trades but the trades can last anywhere from 1 day to numerous days. There can also be days on end with no trades. He has found that the secret is have patience. He also have come to believe those who say longer timeframes are easier, especially for newbies.
He said "This system will not always work but for me it has generated over 400 pips in September already. Please try this out on demos before putting your hard-earned into it. Just because it is working for me (at the moment) does not mean it will suit everyone".
