I just want to say how well this set of rules has worked for me it’s simple and easy to understand. I’ve been trying out different strategies for many currency sets which i trade and this system has yielded me the most profits. I’m up to 500+ pips in 3 days!
Happy pipping ! Wish the best of luck to the rest.
The best advice I can give you is to demo test as many pairs as you can for a month, maybe two. After that period, decide which ones to keep trading with and which ones to eliminate.
Personally, I use the major pairs and the fast movers.
Here’s the list I’m using that works well.
GBPUSD, GBPJPY, EURAUD, NZDUSD, AUDUSD, USDJPY, USDCAD, EURGBP, EURUSD, USDCHF.
Excellent! Thanks for the positive feedback! If you can think of any ways to improve, please don’t hesitate and share! Also, if you can please show us some screen shots. Helps others to see progress.
Thanks!
SYSTEM 2 - Whicked Wicks
The Setup
Pair: Any
Time Frame: Daily
Indicators: NONE
The System
Look at the previous day’s candle. If it was a Bull (BUY) then go to the TOP of the candle’s wick and draw fib lines down to the 2nd previous candle’s body, regardless of direction.
If the previous day’s candle was a Bear (SELL) then draw fib lines from the bottom of the previous day’s wick to the bottom of the 2nd previous candle’s body.
Use the 100.0 fib as the entry for the day. Target 1 and Target two as above, 161.8 fib line and 261.8 lines and I use the 23.6 fib line as the STOP LOSS for both trades. Again, move the SL of trade #2 to break even once trade #1 hits the target.
If you find the top/bottom of the wick is not long enough to reach the top/bottom of the 2nd previous day’s candle body, just use the opposite end of the body (will show a screen shot of what I’m referring to).
Place new trades every day and you’ll catch the daily moves. Once T2 stops getting hit regularly be careful as the price may turn soon. You can catch quite a trend though with this easy set and forget system.
That’s all there is to it.
Yesterday’s EURUSD trade that got triggered. T1 was hit and T2 is still active as of market close today.
Yesterday’s AUDUSD trade that got triggered. T1 was hit earlier today and T2 is still active.
Yesterday I made over 230 pips total across 10 pairs. I will add another screen shot for those special candles.
Now if you get into the following scenario : The 2nd previous day’s candle was not in the same direction as the previous day’s candle, and drawing the fib lines from the wick to the body would not yield positive results, as can be seen in the following screen shot.
Simple move the fib line to the top of the body instead of the bottom, as is shown in the following screen shot.
Setting the SELL STOP at the 100.0 fib line would have yielded a positive trade.
sorry , i do not understand your description of this method . I hope you can explain it a bit more clearly… your work and sharing is MUCH appreciated!!
Duncmac, sorry I know I did a poor job trying to explain it. I made a few more screen shots and hopefully you can understand it a little better from them.
In this screen shot, the candle just closed and a new candle is just about to open.
On this next screen shot, the new candle has just opened. Beginning of new trading day. When I sit down to do my trading, this new candle is already 3 hours old.
On this next screen shot, we draw the fib lines. Connect YESTERDAY’s wick (depending on bull or bear) this case yesterday’s candle was a BEAR (sell) so we’ll want to connect the bottom of yesterday’s wick, to the bottom of the day before yesterday’s body.
Open two pending SELL STOP orders at the 100.0 Fib line, T1 at 161.8 and T2 at 261.8. Use 23.6 fib line as stop loss for both, and move T2 stop loss to break even once T1 is hit.
It’s really very simple. I’ll put up more trades and hopefully you’ll get the hang of it. The key is to draw from wick to body. And it gets tricky if you go from a bear to a bull candle. Sometimes it may be best just to avoid those situations.
If this doesn’t help let me know and I’ll try explaining it again.
Uploaded with ImageShack.us
as you can see i took the top and bottom of the closing wick and it hit my pending orders at the 50.0% and slightly above the 61.8% and subsequently hit above the 100% mark during closing time.
a week before it had a head and shoulders opening which i profit from based on my own signals. however this is about windsor’s strategy and im liking it thus far as i dont need to check every hour like i used to.
Great, thanks for the screen shot. Pictures can say more than words sometimes and it helps people to see what’s going on. Excellent work!
Here’s a trade i did today. Am i doing it wrong just to confirm your 2nd approach.
i basically took the top of both earlier wicks as today’s wick has not close yet.
my USDSGD pair opened today higher and is about to reach 161.8 region hopefully by the time it closes
Are there no entry signals, are you placing 10 trades a day?
the entry signal is when it hits the fib 50.0% point to either buy or sell.
For me i look at the indicators and do my own charting before i decide to enter the trade. however i’m still unclear how windsor does his fib retracements if the candles are bullish -> bearish , bearish -> bullish , bullish -> bullish , bearish -> bearish.
probably examples of how to draw the trades if the candles show such indications would be clearer
Melchsee, from what I can see you set it up properly for the 2nd strategy.
From top of wick from yesterday (even if it doesn’t have a wick) to the day before’s body.
I’m not sure if I mentioned this, but go in the direction of yesterday’s candle.
I’ll post up some of my pending orders I set up last night later on when i get home from work today. Basically nothing got triggered yet this morning. Again, it doesn’t trade often but when it catches a trend, you’ll cash in on tons of pips.
Great job.
I’ll post up more screen shots, you’ll be able to see the transition from a bull to a bear candle and what to do when you encounter certain differences. I’ll even do a few back tests from like May on a few pairs just to show you how many pips could have been made.
Please be patient while I get it organized! Thanks.
I also have the 2nd strategy set up on mt4stats. Here’s the link:
MT4 Stats - Share your MetaTrader 4 Statements with the world
If you were able to go back and see how I set up the pending trades you’ll get a more clear idea of how the system works. 251 pips on Friday June 10th though…1 day of setting up the account.
actually i’ve found out a way to better determine when to enter. its safer but the yield in terms of pip is lesser. as you know high risk high reward, low risk low reward. What i’ve done is add in 60 EMA, 120 EMA together with MACD osMA chart i decide if i want to enter a long or short for the trade. that way i can be sure that i dont get caught in the bad end. Any opinions windsor?
Thanks for the suggestion melchsee, I’ll check it out tonight when I get home from work. Do you check on the higher time frames for confirmation at all? Also, how do you use all those indicators together? Thx.
i think pictures will show more what i meant by how i decide my entries.
here i have default stoch (15,3,3,simple,lowhigh) flat trend 4 MA indicator and GMACD indicator for all timeframes. on the main chart i have 10 and 20 EMA. As i find it more accurate and i dont have to change timeframes to find the cross overs.
basically confirmed signals to sell are,
i also go with my gut feeling on this dont have to follow closely but from my tests its just a way to keep myself psychologically prepared that i made the right decision.
it would take longer than 5 mins but i find it works for me as a safe rule. And i follow your strategy as how you described it.
Thanks for the clarification Melchsee, I’ll take a look at everything today. Forgot the hockey game was on last night lol.
Any how I’m up to 340 closes pips total on my demo acct with +52 more active using my Wicked Wicks technique. A whole month’s worth of screen shots will be forthcoming shortly.
Also note, on GBPUSD using the Wicked Wick method would have earned +1200 pips in may. However, it would have earned -200 pips for the first few days in June so far. Since there isn’t enough data for June, I can’t tell whether or not it’ll hit one of the big moves and land tons of pips yet!
Perhaps using melchsee’s filters I could avoid those -200 pips! 
Happy pipping everyone!
i’ve narrowed down which filters would best fit this strategy after going some tests using 60/120 EMA when zoomed in would help you see the overall trend. however it doesnt indicate when to best enter the signal.
I’ve been testing extensively using stoch (15,3,3,simple,lowhigh) and EMA 10/20 and it is proving to be really effective as to when i enter trades. So far on average i’ve gained roughly 250 + pips per day.
Melchsee, are you using these filters on the wicked wick approach, or the first strategy I outlined?
Last night was a great night for the Wicked Wick strategy. As of this morning, I’m up over +450 pips in ONE DAY! That’s accross several currency pairs but still. Hopefully they all keep going and hit the targets. I still haven’t landed a huge trend yet but still, +450 in one day is darn good.
Unfortunately it doesn’t look like the mt4stats page is updating. I’ll migrate it over to a new publisher like mt4live.com.
Also, please remain patient. I am working on updating my old blog from a few years ago. I’ll be putting up a month or two of trades, day by day, using the Wicked Wick method, with the results. You’ll be able to see how powerful this technique is, and how easy it is. Hopefully I’ll have it ready by the weekend.
Happy pipping!
Thanks for your efforts. I look forward to learning your system.
Hi Windsor,
I’m using both strategies depending on where the last indicator lands,
If there is no clear indication I use your “wicked wick” strategy where I use the latest two candles. If the end candle of the closing day is shown on the indicator I use the first strategy.
As of now I’m back to even on my live test account. I clawed all the way back from -50% just by using this trading method. I’m glad it has worked so well for me. I still have a
Few trades going on and am on the green at +100 pips. Which makes today’s profit the highest I’ve had at +270 pips for the day.