SYSTEM 2 - Whicked Wicks
The Setup
Pair: Any
Time Frame: Daily
Indicators: 50 EMA
The System
If the previous candle CLOSED above the 50EMA and was BULLISH, then draw cutsom fibs from the the HIGH of the previous day’s candle to the LOW of the 2nd day’s candle. Enter a BUYSTOP at the 110.0 Fibonacci level and set the stop loss at the 0.0 Fibonacci level. Leave the take profit blank. We ‘chase’ the market with stop losses.
Using the Move Stop EA provided, we set the first stop loss move at the 131.8 fib mark and set it to BE +5. Once that happens, we adjust the EA and use the 161.8 as the next level and move the stop loss to 131.8. The next level is 250 and move it to 161.8. After that we use the 400 fib level and move it to 250. Then, we tighten up the levels, 500 and move to 400, then 600 and move to 500, then tighten them up again, 650 and 600, 700 and 650 etc etc.
If the previous day’s candle closed above the 50EMA and was BEARISH, we don’t enter a trade that day.
If the previous candle CLOSED under the 50EMA and was BEARISH, then draw cutsom fibs from the the LOW of the previous day’s candle to the HIGH of the 2nd day’s candle. Enter a SELLSTOP at the 110.0 Fibonacci level and set the stop loss at the 0.0 Fibonacci level. Leave the take profit blank. We ‘chase’ the market with stop losses.
If the previous day’s candle closed under the 50EMA and was BULLISH, we don’t enter a trade that day.
Total Reward = +298 pips
Total risk = -92 pips
Risk/reward ratio = 3.2 to 1
Also note : GBPUSD, USDJPY, AUDUSD, NZDUSD are all ‘waiting’ for the candle to close, will do so in the next few days I’m sure.
If you wanted to get into the GBPJPY trade it’s not too late to set a SELL STOP at the 50.0 Fib line. If drawn properly, place your sell stop at 133.23, your SL for both trades at 133.78, T1 at 132.00 and T2 at 130.90. Let’s see how this trade develops!
Hi Eskimos, I’m not quite sure how to port indicators to different platforms. What you could do is use MT4 for the charting and your broker’s platform to trade with.
I added both the MQ4 and the EX4 in the .zip file if that helps?
As of right now, the 3 trades I had set up last night got triggered and are sitting all on the + side, with a combined total of +68 pips. Not a lot, but not bad either for 5 minutes of trading in a sitting.
Ya I used to use the ZZ indi a while back then got tired of it repainting like it does. Decided to try it out again and see if I can get the timing down properly. So far this seems to work live on a daily chart so I’ll be sticking with it.
And thanks!
Will post up the results from the trades that were triggered Sunday night.
Update:
So far, USDCAD hit T1 +58 and T2 is still in the hunt at +58 pips
GPBJPY hit my SL at -55 x 2 = -110
USDJPY hit T1 AND T2 for +31+59= +90
EURGBP is still going strong, T1 and T2 are sitting at +70 each.
So far, I’m sitting at +26 with 3 trades still in progress, 1 sitting at break even, the other at +140 total pips and looks like it will hit T1 at least.
Though looking back at the GBPJPY trade, SWING_ZZ moved the dot THREE candles, meh. Anyone have any suggestions on how to avoid this? Or help filter out false painting? THX!
Hello, Friend, thank you for the idea! Can you tell us how long do you let the limit orders valid if you do not get filled in the second bar after the bar with the dot?
Olomouc, I usually leave the pending orders alone until a DOT appears in the opposite direction. Then I cancel the pending orders and get ready for the next trade OR if they reach the 161.8 Fib mark without being triggered.
I’m considering not using limit orders, and stick with STOP orders. I’m hoping this may filter out the repainting of the ZZ indicator. Wait until the price crosses the 50.0 mark opposite the direction you predict it is going. Then fill in your BUY/SELL stop orders and go from there. If you aren’t around and the price retraces past the 50.0 mark and by the time you get to your computer it’s already going in the direction you want, enter the market and set your targets and adjust the SL to an appropriate level.
I’ll try testing it out this way for a while and see if I can hit some good trades or not.
Feel free to ask any other questions! Happy pipping!
Your instrustions say to draw the FIB from the candle just closed, that is the candle to the right of the one with the dot, to the dot. In the screenshot post #2 you have drawn it from the top of the candle with the dot to the dot. Which should it be?
T2 is at 0.8822 and not 0.8859. Thanks for pointing that out!
Here’s the screen shot with the corrected Fib from post #2.
As you can see, it hit T1 (though I manually closed out T1 as it was 3 pips away from target and moved T2 to breakeven) T2 is still active and sitting at +111 pips at the moment. I think it’ll go on to hit T2 today.
Also note
USDCAD hit both T1 and T2
USDJPY hit both T1 and T2
GBPJPY hit SL x2
EURGBP hit T1 and T2 is still active (above SS)
Hi FXMarmy! Yes, I place the stop loss at the swing high/low. On the screen shot above, (post #17) when I originally placed the buystop I put the SL at the 0.0 fib line, which is also the swing low.
I have since moved the SL to break even since T1 was hit.
I’ve updated the entry rules. Had I followed them it would have saved me from the evil GBPJPY trade I lost on Sunday night.
Remember, this system doesn’t trade often, 20-30 times a year per pair but has a high pip yield and is easy and doesn’t take a lot of your personal time.
windsorftw - does the “movestopexpert” indicator work with any daily strategy or is it coded for your strategy only? Seems like it should work with any pair traded daily or perhaps any TF. I will “test drive” on demo this strat next week with the only problem being that I’m an early-to-bed early-to-rise type so waiting for 23:00 CDT may be iffy. It will be fun to find out and I thank you for sharing your work here. d.
