CounterStrike Trading Method... 100% mechanical...
I have finished writing and detailing this trading method. Please take some time to read and study it. Hope the fxfishermen will benefit from this method.
It wont work.Get an EA and test it.I have tested it AND SIMILIAR SYSTEMS.SORRYOILFXPRO
Sorry but you are really pathetic... Make the EA yourself and test it out... Show your test results if you are truthful! You have not even tested the system and you are already making statute comments.... Are you out of your head? I do not think testing similar systems equals to testing THIS METHOD as it is....
Bossxero made a good point. Oil, you claimed the system didn't work without giving any proof at all. You even claimed you tested it as an EA. But then you contracted yourself with "not spend more time writing EAS I know won't be of any use to me afterwards." My best guess is that you haven't tested this actual setup at all.
Two similar systems don't mean they will perform the same way. You probably know than more than I do that even a minor change in parameters of the same system alone will lead to a different outcome, let alone the difference of a whole bunch of logics.
Correct, but I know a profitable /unprofitable system when I see one.If he uses a CCI /stochastics on a hourly t/f before entry, it will work for the manual trader .oilfxpro
Ohohoho... Seems you got a crystal ball out there... Or as you say... you might be the forex grandpa... or the one behind the market moves itself...
If you took time to read the post well rather than jumping to your 'miraculous' conclusions, then you should have read that this is a trading IDEA and it is open to improvement... You are deceiving neither me or anyone here ... but yourself... As many already told you, you better grow up...
thanks for the system bossxero...it have great potential...
Thanks a lot for sharing Bossxero - I intend to write an EA for it. Will share it in several days
XRange, have you finished the EA? just can't wait to see how it works.
5 months later....tum dee dum! Does anyone have results to post? Im just getting started so will probably have something (results, not the EA) by end of week. And just asking, when everyone talks of the EA, if I happen to have the automated Excel version following it, how do I enter those formulae into the EA, coz the EA is all ... geeqspeeq right now for me. I intend to sit down on mql4 later when I DO have time. Easier in Excel, unless someone helps me fit which figures into the EA maker?
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
This is a simple trading method and it can work on any pair. However, it must be used on the Daily timeframe only. The best part of this system is that it just need a few minutes from the trader and it is 100% mechanical. You just have to do what the system is telling you to do, there is no time to think. And we are only using a few indicators just to help us with some calculation but not to derive any trading signal from them.
As the name implies, this trading system is a counter trading strategy, that is, we are buying when people would normally be selling and we are selling when people would normally be buying. We will also be using a Risk/Reward ratio of 1:1.. The system is just the basis of what can be a more complex system after you tweak it and add indicators etc to fine tune the strategy. I am going to write on the rules one by one and detailing them as we go on... and you will see at the end that it is indeed a very simple mechanical method.
1. Calculate the Average height (pip height) of the last 10 Daily candles.
We first need to calculate the average height of the last 10 daily candles. To calculate the height of 1 candle, we take the High of the Candle and we minus the Low of the same candle and we get the height in pips. Each candle will have a different height or pip height. Here is a screenshot to get a clear understanding...
However, what we need to calculate is not the height of 1 candle but the AVERAGE height of the last 10 candles. We can do so by calculating the height of each candle separately, then adding them together before dividing them by 10 to get the average height we are looking for.... Of course, this can be tedious and time consuming... However, there is a trick to achieve this. We just need to add 2 simple moving average to the chart. The first one with a period of 10 on the HIGH and the second one with a period of 10 on the LOW. Now to get the pip range we are looking for, we take the High moving average value and we minus the Low moving average value and we get the average pip height of the last 10 candles. If you want to look the average pip height of the last 20 or 50 candles, you just change the period of both simple moving averages to these values. Here is a screenshot of what I am talking about. Please take note that we need to use values from the SMA on the current candle which is still open.
This is all regarding step one and as you can see, it is very simple and easy to get this average pip height of the last 10 candles on your chart. You must also note that the moving average were used just to ease the calculation process and not for generating any trade signal. I hope everything is clear in your head so far... if not, then please read this part again and try to do some practice on your charts. After you are done, then you are ready to move to step 2...
2. Calculating the TriggerPip Value from the Average Pip Height
After we have calculated the Average Pip Height from step 1, we should move to the next step which teaches us how to calculate the TriggerPip Value. First of all, you might be asking yourself what a the TriggerPip value is... there is nothing to worry about and it is just a fancy name that I have come up with. The TriggerPip is very important as the Entry of the trade will be 100% based on it. As far as the calculation of the trigger pip is conncerned, it can be done by a school kid. You just calculate the 80% of the Average Pip Height you got earlier and you are done. For example, if the Average Pip Height is 100pips, the TriggerPip Value will be 80 pips. As simple as this...
Let me elaborate a little on why we choose this 80% for the TriggerPip Value. Even though the Average Pip Height is 100 pips for example, you will see that many candle will not even reach this height but however, most of the time, they should reach around 60%-90% of the Average Pip Height. So I chose this 80% as it seems to be reasonable amount the many candle will be respecting. If everything is clear so far, you can move to next step. Otherwise, make sure you read this step again. Also, the system is open and you can use another percent value if you like.
3. The real part... Trade Entries
This part concern the trade entries and it is very important that you understood all of the above before you can continue reading this part. Now, you should monitor the daily candle... and watch its height closely. If the height is less than the TriggerPip value we got earlier, then we do nothing. But... if the price is equal or greater than the TriggerPip Value, then we need to open the a trade.. but in which direction? Let's see...
4. When to go Long or Short
When the height of the candle rise up and becomes equal or greater to the TriggerPip value, then we need to see on which side of the candle the TriggerPip value was met. If it happened at the bottom of the candle, that is price is at the LOW of the candle, then we should open a BUY position but if it happened when the price is at the HIGH of the candle, then we need to open a SELL position. As you can see, this is a counter trend method as when price is rising, we are selling and buying when price is falling. We are will be capitalizing on the retracing moves to make some profit. Look at this illustration below for a clear idea about the positions details.
I hope that that illustration above can help you in understanding the logics behind the buy and the sell. A point that should be noted carefully is that... we do not care about any other candles ... we only need to work on the current candle and we should just focus on it alone. Do not get distracted by the other candles and follow this system mechanically. Do not under-estimate this method due to its simplicity... it has more inside. The last part of this system is the setting of the stoploss and takeprofit levels and I should be writing on it in the next part. Good luck so far...
5. Where to place the StopLoss
After we have determine a trade signal, it is time to put the Stoploss as it will help in decreasing our risk and improve the consistency of the system.
For a BUY, you place the Stoploss at 1-5 pips below the FIRST LOW WHICH IS LOWER THAN THE CURRENT LOW. If the candle before the current candle you are trading on has a higher LOW, then look at that candle just before this one and keep going like this till you find a LOW which is LOWER than you current LOW.
As for the SELL position, you will place the stoploss a few pips above the HIGH which is HIGHER than the HIGH of the current candle. We are not looking for the HIGHEST HIGH or LOWEST LOW to place the stops but we are only looking at the first candle which HIGH or LOW is HIGHER/LOWER than the current UNCLOSED candle on which you are currently trading.
6. Set the TakeProfit
Now the last thing that we need to set is the TakeProfit an it is very important as well. The TakeProfit also is not complicated at all to calculate. You just set the TakeProfit at 50% (HALF) of the current candle and it is the same for both the buy and the sell position. For example, it a candle is 100 pips long, and it we have signal to open either buy or sell position on this candle, then we will set the TakeProfit of each of them at 50% of that candle at the time you are opening these positions. So in our example, the TP will be 50 pips above the buy or 50 pips below the sell.
I have come to the end of this explanation and I hope I have covered all the main rules for the strategy. Please take note that I have come up with this trading method all by myself and it has been shared here on fxfisherman exclusively. You should also take note that I do not myself use this method as I just came up with these trading ideas recently and I am still experimenting on it. I am sure many of you will doubt this method due to its simplicity and honestly, you should not be thinking in this way. The simplest are always the best. Take some time and study this system. You are free to experiment and tweak it to your own liking as well. Suggestions and improvement ideas are welcomed. Would like to hear back from you, especially if you are practicing it on a demo. The system is not easy to backtest at all and most of the testing should be done in the real market or through a trading simulator. Good luck and all the best.