The Daily Fozzy Method | Forex Indicator Download - MT4/MT5 Resources

This is my first post on FF after months of reading and trying out numerous systems provided by members of this forum. I found the following indicator on a Vegas post a few months ago. I don't remember who posted it, but I really appreciate their insight and hope they don't mind me showing how to use this indicator.

After a few months of testing and switching from one system to another I returned to this indicator and in hindsight I should have stuck with it from the start as it seemed to suit my trading style.

Anyway, let’s start with the details. I only trade the daily chart and only trade EUR/USD, GBP/USD, USD/JPY and USD/CHF. Why these? Mainly because these are the only ones I've backtested and traded in the past 3 months. I also tend not to trade on Monday mornings (Australian time) as prices can sometimes gap over the weekend. However, this is subject to discretion.

On each chart I have an 8 period RSI. I also have an 8-period MA and Bollinger Bands on the RSI, also with a 20-period setup on the RSI.

Long entry: RSI must be below the middle line of Bollinger Bands. Once the MA crosses above the RSI, buy long on the next bar's open.
Short entry: RSI must be above the middle line of Bollinger Bands. Enter when the MA crosses below the RSI.

Stop loss is the previous bar's low/high. If the price moves more than 40 pips in my direction, I move S/L to break even. After the initial 40 pip move, I exited using a trailing stop (25 pips).

I only look at the charts once a day before 0.00 GMT. This way I know which pairs are approaching my setup. If my criteria are met, I'll make the trade. That's it. A simple system that seems to work for me. Looking at charts all day isn't for me because I have a real job and I'm not in a convenient time zone. 10 minutes a day is enough. This method offers a limited number of transactions, but transactions can last from 1 day to many days. There may also be no transactions for several days in a row. I have found that the secret is to be patient. I've also come to believe those who say longer time frames are easier, especially for newbies.

I'm not saying this system will always work, but for me it has produced over 400 points in September. Please try it out in the demo before investing your hard-earned money. Just because it works for me (yet) doesn't mean it will work for everyone.

Please feel free to leave a comment.