Four Hour Trader is the 4 Hour Charts Trading System developed by John Campbell, the Rich Lazy Trader. This Four Hour Trader can be used to trade almost all the major forex pairs, plus it can be used to trade the DOW futures as well as Gold and oil. With this Four Hour Trader, you can expect to get around 15 trading signals on the six major currency pairs per week. This is an almost set & forget system!
Four Hour Trader is a serious system that will require a minimum equity of $2K in your trading account if you want to trade a standard 0.1 contract or $300 in a micro account if you want to trade a 0.01 contract and if you want to trade a standard 1.0 lot, then you will need at least $20K as equity in your trading account. The average take profit per trade would be around 100 pips and the average stop loss would be 70 pips per trade. Now, if you are not comfortable with using this wide a stop loss, you shouldn’t trade with this system.
First, why you need to trade on the 4 hour charts? Trading on the smaller timeframe charts like the 1 minute, 5 minute, 15 minutes, 30 minutes and even 60 minutes is done by most day traders. Most use the 1 minute and 5 minute charts for scalping. But the problem is most of these smaller timeframe charts are full of noise. This high level of noise makes most of the signals false. So, when you trade on these smaller timeframes, you are most of the time only trading the noise and wasting your time.
But when you most onto higher timeframe charts like the 4 hour, daily, weekly and the monthly charts, the level of noise reduces drastically and what you see on these charts is the actual market moving not some phantom moves due to the high level of noise. Some traders love to trade the daily charts. While others consider the 4 hour timeframe the ideal timeframe to trade.
Testing The Four Hour Trader 4 Hour Chart Strategy
Now, whenever you come across a new strategy, first test it thoroughly on your demo account. This testing has many purposes. First, by testing on the demo account, you will be able to judge how easy it is to trade with this strategy. There is no use at all to master a system or a strategy that is complicated and tedious to trade with. If you find this four hour chart strategy complicated to trade with, simply drop it and get a refund from John Campbell. But if you find it easy to trade and this 4 Hour Chart Strategy makes a lot of sense to you, you can then think about mastering it further.
This means further testing it on the demo account for a period of at least one month. Make a trading journal and enter each demo trade that you make with this strategy in that trading journal. At the end of the month, do an audit and see how profitable this system is. If you feel satisfied with the profitability of this system, then open a micro account with a deposit of $300 and trade live with this Four Hourly Chart Strategy on the micro account. Once you are thoroughly satisfied, only then trade live on the standard account with the Four Hour Trader !