Hi everyone, I have been asked to post this system by a few friends here on babypips.
It’s an extremely high risk, low yield system, that NEVER FAILS…EVER.
I have forward demo tested this system for two years, back tested it to 2004 and am currently trading it on a live account with consistent results. CONSISTENT. That’s a nice word we all like to see in Forex, eh.
Well, without further ado, here it is!
PAIRS: EURUSD, GBPUSD (Testing AUDUSD)
Time Frame: 5Minutes
Trading Time: 8:00pm EST to 10:00pm EST (Asian Session)
Indicators: EMA (Period 5); EMA (Period 13); Williams Range % (Period 14; levels at -20 and -80)
Optional Indicator: PSAR (Default)
Rules:
LONG: Wait until the Williams Range % goes into the OS zone of -80. Once it does, wait until it exits the zone and starts moving up. Next, we wait until the 5EMA crosses and goes above the 13EMA. Wait until the current candle closes. Once all those conditions are met, draw fibs from the HIGH of the candle that just closed to the recent swing low, which should be the same as the lowest PSAR dot. Set the stop loss at 350 pips, and target 250.0 fib mark for the take profit.
SHORT: Wait until the Williams Range % goes into the OB zone of -20. Once it does, wait until it exits the zone and starts moving down. Next, we wait until the 5EMA crosses and goes below the 13EMA. Wait until the current candle closes. Once all those conditions are met, draw fibs from the LOW of the candle that just closed to the recent swing high, which should be the same as the highest PSAR dot. Set the stop loss at 350 pips, and target 250.0 fib mark for the take profit.
Here’s the key to this system.
Once the trade goes against you by 125 pips, re-enter in the same direction again using twice the amount of lots. Set the stop loss the same as the first trade, and enter 125 pips for the TP.
For conservative people, set the take profit of the first trade to the entry price, resulting in a break even trade once it goes our direction.
Again, if the trade moves against you by another 125 pips, re-enter a third time at 4x the original wager. Set the stop loss the same as the first trade, and enter 250 pips for the TP.
Very high risk, low profit - but consistent.
There are a couple of ways you can manage the trades.
Conservative - close all open trades once in a small net profit, or move the stop loss once a certain point is reached and you know you’ll have a small net profit
Greedy - don’t touch the trade and let it go to completion.
Martindale system, slightly. I know most of you are sitting there saying Martindale’s don’t work. If this were a true martindale type system, then we’d keep adding to our positions until we’re broke. Almost 10 years of back testing, demo testing and live trading have proven that the stop loss hasn’t been hit, and very rarely do we have to set that third trade. Once, maybe twice a year.
Here’s an example of a trade I took on my live account:
Jan 8th, 2013; GBPUSD
BUY with 0.1 lots entered at 1.6120, stop loss set at 1.5570 and TP was set at 1.6138 (+18 pips).
Price went against me and as soon as it was -60 pips, I set up a pending order with 0.2 lots at 1.5995, stop loss set at 1.5570 and TP at 1.6120. A day later the second trade was triggered. I moved the TP of my first trade to 1.6120 (break even)
Price finally went my direction, and as soon as it was high enough I moved my stop loss on both trades to 1.6050. Unfortunately, price ended up hitting my stop loss and I ended with -18 pips, but a net profit of +$37.00. Which incidently was higher than my original TP (+$18.00)
Hadn’t I touched the stop loss, the price kept going in my direction and I would have ended with +125 pips at 0.2 lots ($250.00) and +0 pips at 0.1 lots (break even)
example trades:
I’m using TradeBuilder Classic for my entry signals, it basically sends a signal once the candle is closed and the above conditions are met, great tool for a low price if you wanted to check it out, visit mnikolic.com.
With TB, I don’t have to sit and watch my charts, as soon as it gives me a signal it sends an audible alert. I’m sure any such indicator can be used for a EMA cross.
Have to say if it was anyone else suggesting this strategy i would be hesitant, should be interesting to give it a try