Forex Forays: The BunnyGirl Trading System

One of the best-known free trading systems available was invented by the (charmingly named) BunnyGirl, who posted her strategies in the MoneyTec forums and in so doing started one of the liveliest forex discussions ever.

The core of her trading system is a 5 period x 20 period weighted moving average (WMA) cross on a 30-minute chart. The main currency pairs traded are EUR/USD, GBP/USD, and USD/CHF, and she goes both short and long on all pairs. However, it's the filtering that goes into identifying each trade that really makes the system successful...and according to BunnyGirl it's been extremely successful, to the tune of 90% trading success and a 45 trade winning streak at its peak performance.

So how does the filtering work? Here's what BunnyGirl says to look for:

WMA crosses around the key trading period of 00:00 GMT (Greenwich Mean Time)
A breakout of at least 20 pips for the EUR/USD and 25 pips for other pairs, plus spread if going long. This helps minimize those nasty whipsaws that can saw away your funds in a hurry. (Get it...whipsaw, saw away...I just made that up. Oh, the wit. Please, save your applause for the end of the post.)
Avoid trades when the 100 period WMA is near the cross and the price is heading in that direction.
Don't trade in the last 5 minutes of a 30 minute chart period - wait for a breakout in the next 30 minute period.
Don't enter trades near points of strong price resistance or if they're going against the prevailing daily trend.
Multiple lots: BunnyGirl traded a sophisticated mix of 4 lots with trailing stops set at various levels. I won't summarize this system here but you can read all about it in her complete strategy, which you can download below.

There are a lot of other rules and filters you'll want to review before trying this system, and rather than copy them all verbatim here, I'll just cut to the chase and show you where to download it. I've come across two versions of the system which differ in a few details, and one of which has a lot more helpful charts. On the other hand, the other one's half as long. So I'd download them both and compare them to see which works best for you: