Wu Wei Strategy
Your strategy soud so googd to be true, could you show sonhe demo, Thank.
Actually, this would work because you're waiting until build up 1000p before quadrupling. Also, could scale down TP when increasing position size since trend will eventually reverse and still make profit if S/L hit. I'm working on a spreadsheet that I'll post later.
Your strategy soud so googd to be true, could you show sonhe demo, Thank.
hi
hi,pal, your wu wei strategy, is it one part of the Tao Theory in China? It is amazing that the strategy make huge profits.
Would you please show some examples and pictures? We are interested in your trading "stlye" 
Here are a couple of short term trades I made. The first one I made over $9,600. Yes, it took six months, but I never risked more than $294.
The second one didn't turn out as good. I entered two positions and got stopped out by some news. I only made about $560 bucks in a month.
I think that this system might work with a short term EA, but the hardest part will be identifying additional positions and TP.
hi,pal, your wu wei strategy, is it one part of the Tao Theory in China? It is amazing that the strategy make huge profits. Would you please show some examples and pictures? We are interested in your trading "stlye"
Joey,
It is named after Wu Wei which is a Taoist principle.
this strategy is not for my trading style but i'm interested in trying this one and/or build an EA out of it.
Coey, how long have you been using this system?
it will not work for me (manual trading) -- MTF with single indicator
Joanne,
I have been using this strategy for 12 years now. I started it in stock trading, but it is better suited to forex. I started using it in forex 4 years ago. I find that the older I get, the better it works, because I have more patience. I used to try and make the positions too big, or get in them too soon and would hit my SL. Still with profit, but much less than I could have made if I had waited.
I also use another type of system that has fixed lot sizes. If I open .2 lots, then when I am in profit say 500 pips, I open another .2 lots and my breakeven is 250 pips. At 1,000 pips, I open .2 lots and my breakeven is now 500 pips. At 1500 pips, I open another .2 lots and my breakeven is 750 pips. This works better on more volatile pairs because you can have a progressively larger SL as your positions grow. But if the trend is strong in one direction, I try to use a multiplier. It is a safe way to get into big positions. And the more fixed size positions you have, the more hedging effect it offers you.
I could see an EA doing something like opening .1 lots every 200 pips for 800 pips, then a .5 lot at 1,000 or something like that. The TP and the position size would be the hardest for an EA. If you could get the EA to identify a pullback, you could determine the multiplier based on the distance from the previous positions. For example, if you have .1 lot in profit for 200 pips and the EA identifies a pullback, then it uses no multiplier and opens a new position of .1 lots. If at 400 pips above the previous position it identifies a pullback, it might open .2 lots.
Even on a much shorter TF, you could use smaller movements and smaller lot sizes. .01 lots with 20 pips in profit and open .01 lots again. SL could be set at 8 pips to insure some profit. At 40 pips, .01 lots again, and SL is move to 16 pips. Just let it ride and see how many positions it can open.
How many trades does the system genreally perform (do) in one (1) day?
I might do one a week.
I was thinking about Wu Wei as an EA and I kept thinking the entry is the biggest problem. I came up with a martingale type entry that scales down. For example, if .1 lot is entered and the market goes the other way, then at a specific pip count of say 40 pips, .2 lots are enter in the opposite direction. If the market flips again, then at 30 pips, .4 lots are entered. The next position would be .8 at 20 pips, then 1.6 at 10 pips. After the third position of .4 pips is entered, the system would only be trying to break even. By reducing the pip movement for each opposing position, the pips needed to break even reduce as well. The idea after the third position is that the system now knows the market is not trending and will try to close all position.
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Hi all,
This is my first post:) I thought I would let you know of my system. It is a very simple, low risk, long term system. It involves getting into a comfortably small position of say .1 or .01 lots. You enter when monthly, weekly, and daily charts all show the same trend. You can bail when it looks like things are turning, but it you keep an eye on the market, it is rare to develop a significant drawdown of more than a few hundred pips.
Sit on the position as it grows. Usually around 1,000 pips in profit, I look for a pull back and jump back in at what I hope is the peak of the pull back. I quadruaple my original position. If it was .1, now I am at .4. I put my stop loss at 150 pips for all positions. If it hits this stop loss, I still make a profit. I have .1 lots in profit of 850 pips, and .4 lots in loss of 150 pips. If the trend continues, then at another 1,000 pips, I look for another pull back and get in with 1.6 lots with the same 150 pip stoploss. I still make a profit if it hits the stop loss.
This technique produces a lot of small profits, with an occasional big payout, and pretty low risk. You can use whatever multiplier you like. I have done a 20 times multiplier before just before a news release. I had .1 lots in profit 850 pips, and just before a news release I open 2 lots with a 20 pip stop loss. The news was bad for me, so it went the wrong way and I hit the stop loss, but still made over $400. If it had been good for me, I might have made a lot of money on very little risk. There is always the risk that the news is so bad, the price shoots past your stop loss, but you still have at least some hedging in place. I could have gone down to 40 pips before I broke even.
This system requires a lot of patience and a lot of inaction (Which is why it is called Wu Wei), but I only lost money once when a news release suggested a weakening or possible reversal of the trend, and I decided to get out early. As I refine this system, I believe I should be able to make a couple decent payoffs a year.
I used all time frames for the initial position, but mostly focus on weekly and daily for the pull back and additional positions. I use the standard bollinger bands on a weekly chart and get in after the price moves close to or through the BB bands and then starts back in the right direction.
Any thoughts on how to improve my strategy would be apreciated.