Thanks to Xard, Beatlemania, Mr.Tools, Kvak, Banzai, Jimmy and all the other awesome People in our Forexstation community I have managed to put an, I believe great System together.
Some may know my other Thread with an already profitable System shared.
Opening this new Thread doesn’t mean this one is better or that my other System is worse.
This is just different, and I started to like this System more as it fits me better. That’s all.
I am going to delete any stupid questions or unnecessary comments to keep this Thread clean
Over the Weekend I am going to open up a demo account with a myfxbook connected to it and I am going to share all Trades I take.
Please keep in mind that I have NOT forward tested this System anywhere long enough to be 120% sure that its going to be profitable.
I am also mainly going to Trade the 4Hour Timeframe as my main source of income comes from scalping Indices and I am not willing to spend too much time on Forex Charts.
I hope that everyone can get involved, share setups and ideas.
Those are the Vital-Points a mostly systematic approach needs (thanks to NNFX)
1. Baseline → Identifying the Trend
2. Confirmation 1 → Entry Signal
3. Confirmation 2 → confirming entry Signal
4. Volume Indicator → Indentifying low/high Volatility
5. Currency Strengh → Confirmation of the Trend/Momentum
Now let’s see what the Buddy System uses as its Vital-Points:
The Baseline is a moving average ribbon. In this case called „T3MA-Ribbon “.
The Baseline makes sure we are trading in the right direction.
There are 2 ways to use it:
1. The Trend changes once it crossed the Ribbon
2. The Trend changes once the MAs are in the correct order
Both are valid reasons, the Ribbon cross happens faster than a change of MA order as you can imagine, this means entering on a Ribbon cross is an early sign of a Trend change but a true confirmation only happens once the MA order is correct as well.
Conclusion: Ribbon cross → early entry but higher Risk
MA order → later Entry but lower Risk
For our main Entry signal, we use the Arrow Signals, Arrow pointing down is a sell and an Arrow pointing up gives a buy signal.
In this case we have 2 confirmation Indicators which are also playing the role of the Volume indicator.
The WAE and the BollingerBands (Candles):
the WAE must be the same colour as the Entry Signal (Arrow).
The BollingerBands (Candles) must be the same colour as the Entry Signal (Arrow)
As I mentioned already, we use 2 Volume indicators, the WAE and the BB-Candles.
For the WAE you must look at the size of the Bar shown, if its small it means there is low volatility in the Market and might be better not to trade. To understand whether a Bar is small or big you can either look to the left and eye the average size of the previous WAE Bars or use the ATR deadzone setting.
The BB-Candles indicate low Volume through the grey Candle colour. I recommend not to enter a Signal on a grey-coloured Candle.
The Currency Strength indicator can be found in the same sub window as the WAE, as the name already suggests its showing you which currency is stronger for the current Pair and by how much.
This is a good Trend confirmation and should not be ignored. I suggest always trading the Trend of the Daily TF.
Now that we have discussed all the common Vital-Points that a System should have, I have added one more “ingredient” to the Buddy System.
The HGI Indicator. I am only using the so called Rad-Signals from the Indicator and it can be used in 2 different ways.
1. Adding to Positions
2. Taking a 2nd change on entering the Market, if the Entry signal was on low Volume
Keep in mind that you are trading a breakout with it, you are trading the break of the low/high
Warning! Rad-Signals can recalculate!
Another little “gimmick” I have included is the Peak HiLo indicator. This Indicator can help understand when a Market is “overextended,” and a new Entry should be well thought about. Keep in mind that this Indicator is a Reversal indicator. Meaning if it gives a short signal on a given Timeframe it means the Trend is long (but we may get a pullback/reversal).
This System can be traded purely mechanical if you want to, but I suggest adding basic Price Action for a higher Win rate.
I have added a Channel to give you a good overview of the Markets direction.
I have added Weekly and Monthly Pivots as Button (see sub window), these can be used as Targets, further bias confirmation or as Support/Resistance levels.
Furthermore, I would also add normal Support and Resistance levels in your trading to increase your chances of winning.
I could have added an Indicator for that, but from my experience there is no Indicator that does the Job as well as you can do yourself. (I personally don’t draw them; I just take note of them)
!Depending on the Resolution of your Monitor you have to change where the “Statistic Peak Indicator” is located!
!Sometimes the Values in the subwindow get messed up, I have included a script which deletes all objects (switch Pairs or Timeframes to refresh)!
Files to be used: __________________________________________________________