4x1 Trading System

4x1 Trading System Rule


This time I want to discuss about one of the alternative trading strategies that I took from "Bird Watching In The Lion Country" from Dirk Du Troit. I am interested in discussing this strategy because it is relatively easy to apply and what is suggested to be done in this strategy is indeed something that makes sense. Ok, the core of this strategy is 4 points, namely:

1. One currency
The point here is that we are encouraged to concentrate on one particular currency or pair. Understand correctly the behavior and nature of the pair we are trading. Learn the nature of the movement, its daily range and the factors that influence the movement of the pair. In short: understand the true "character" of the pair. Even if we want to trade in a few pairs, take pairs that are still "brothers" such as for example: GBP / USD, GBP / JPY and USD / JPY or it could be EUR / USD, GBP / USD and EUR / GBP. Why?

Well, actually to make it easier for us to understand the behavior of each pair, because the pair of siblings indeed influence each other. Indeed, to recognize and understand the behavior of a pair really requires patience, similar to our understanding of a person's behavior.

However, if we already understand and know the behavior of a pair very well, we will not often be surprised by the movements that may be beyond predictions. Usually a trader has a mainstay and favorite pair of each. I myself feel more suitable to trade in the GBP / JPY pair because I feel it's quite familiar with this pair, after a relatively long introduction period plus MC several times.

jpp jpy
2. One Lot
The purpose of one lot does not really have to be translated as we have to trade in 1 lot. The point here is, use only low margins so that it is relatively safe to hold back the pair movements that may not always be in line with our expectations. How much margin is safe?

Mmm ... actually depends on the style of each trader. Only for a while I suggest using margins between 5-20% only. One of my mentors suggested using a margin of only 1% per position with running positions (positions / transactions that are still running) between 5 and 20 positions. However, there are some traders who use 10% margin per transaction with running positions only between 2-3 positions. It all depends on taste. It's just that, margin management here really needs to be considered so that our margin resilience is maintained and of course to avoid the Margin Call as much as possible.

3. One Direction
That is to say here, we are advised to just follow the major trend or the main trend that is currently in effect and avoid opening positions that are in the same direction in the same pair. The reason, to make it easier for us to control position. Dirk Du Troit described, that if we do open positions in different directions in one pair, it's like playing chess against ourselves. At a minimum, said a trader friend, having a position in the opposite direction would make it difficult for us to pray. Well, yes, we should do it in detail, for example: come on GJ, go down to 131.40 so that TP for its sell position, then it will rise again, so that the buy position also gets TP too. It's troublesome right?

4. One Percent
That means here, set a reasonable target. It's a little okay, as long as profit. There is no need to hesitate to close a position and close the trading platform if it is felt that there is enough profit for a certain day or period. Don't hesitate to take profit if you feel it's enough.

Anyway, maybe I need to add one more thing: don't be greedy. Set daily or weekly targets. If the target has been reached, close the trading platform and leave your trading desk. Ok, what we are talking about above is only an alternative strategy that we can implement. All returns to each trader to determine what strategy is most suitable for ourselves.

My advice, just enjoy every process in trading. Don't trade into a burden, because after all, psychological conditions are very influential in making decisions related to this trading activity.


Linkback: https://www.forex.zone/forex-education/29/4x1-trading-system/1653/

it seems that this is an interesting technique because it uses one currency, one system, one lot and everything is one-to-one because it is a technique like this that makes us consistent and develops rapidly because if we always change techniques, the results will also be not good

When we only focus on one pair, it will be more effective and efficient

I really agree with this technique because this technique teaches one time open position, one time having a currency pair and everything only once

One shoot in this trading can be likened to a hunter who patiently waits for his prey

And what we need to understand must always be management, don't let us give up everything just because one shoot

Usually trading with the One Shot One Kill system using an account that is ready for margin call from the start

 I suggest using margins between 5-20% only

Using margins between 5-20% is a common practice in forex trading, allowing traders to amplify their exposure to the market. Margin trading involves borrowing funds from a broker to open larger positions than the available account balance. It provides the potential for greater profits but also increases the risk of losses.

Operating within the specified margin range requires careful risk management. Traders must assess their risk tolerance, financial capabilities, and trading strategy before utilizing higher leverage. Setting a maximum margin limit helps avoid excessive risk-taking and potential margin calls.

Lower margin levels, such as 5%, offer conservative leverage, suitable for traders with a lower risk appetite. It provides a cushion against market volatility, reducing the likelihood of significant losses. However, the potential for substantial profits may be limited due to smaller position sizes.

On the other hand, using margins closer to the upper end, around 20%, allows for higher leverage and potential for larger profits. This approach is more suitable for experienced traders who are comfortable with the associated risks. It is crucial to carefully analyze market conditions and consider the impact of volatility when using higher leverage.

Traders should implement risk management strategies to protect their capital. Setting stop-loss orders helps limit losses by automatically closing positions when a specified price level is reached. Trailing stops can also be used to lock in profits as the market moves in favor of the trade. Diversifying the portfolio across multiple currency pairs and avoiding excessive concentration in a single trade further mitigates risk.

Regular monitoring of positions is essential when using margins. Traders should stay updated on economic news, central bank announcements, and geopolitical developments that can affect the market. Adapting to changing market conditions and being prepared to adjust positions or exit trades is crucial for managing risk effectively.

It is important to note that while higher leverage offers the potential for increased profits, it also magnifies losses. Traders should never risk more than they can afford to lose. Comprehensive understanding of leverage, risk management, and disciplined execution are essential when using margins in forex trading.

Ultimately, using margins between 5-20% provides flexibility and potential for profitability in forex trading. However, it is essential to carefully assess risk tolerance, implement robust risk management strategies, and continuously educate oneself to navigate the dynamic forex market successfully.