Current system I am using.
Instruments: FX, gold, crude oil.
Method - price action, "pin bar" reversals
Timeframe: Hourly and daily
Entries:
Scan each market on watchlist for hourly "pin" bars on the close of each hourly bar
If pin appears, consider entry.
Conditions:
Pin bar must have a nose exceeding the recent range.
Pin bar must have rejected a S/R level with price reversing to near the open of the time period - this S/R level must be significant enough to suggest that the level has been rejected and price is moving the other way - this is determined on a discretionary basis, but S/R levels, trendlines, the highs/lows of previous "pins", and fib retracements are used.
Optional conditions: (these are things I like, but I'll take a trade without them)
Other FX crosses should support the trade. (for example, I took a cable short the other night when EURGBP was showing strength = £ weakness. Further, I sold yen when it was showing weakness against EUR, USD, and GBP - CHF also showing weakness) These conditions serve to confirm "pin bar" based entries - they do not stand as trade conditions in their own right.
Invalidations:
Stop excessive
Trade does not "feel" right
Pin doesn't look quite right
Pin is counter trend and the reversal isn't significant in terms of the previous price action (for example see the pin today in GBPJPY - falling back 80 after a 400 rise is not a reason to sell in and of itself, and I paid dearly for that mistake)
Pin does not conform to recent price action
Aside from 1), those are all very subjective.
Exits:
Currently, when I feel like it. This is not optimal. New rules:
No exits within the first bar unless stopped out.
Only move stop in the direction of the market, and only up (down) when the previous bar has made a new high (low). No moving stop to breakeven unless the market is heading into S/R against the position and is losing momentum. This cannot be on the first bar.
Only exit the trade when I feel it is no longer correct - not to take early profit or bag some pips, make up for another loss,etc. ie when price action is showing that the market has consolidated and is looking to reverse. This may involve holding a position for some time, however the risk can never be greater than the initial stop + cost of carry, so this should not be a problem.