[B]Hybrid trading system[/B]
Hello traders. Over past year of trading forex i have been developing and improving Hybrid scalping system which you can find on this forum and some of you might have followed it. Basically it was scalping system mostly, until last version 3, which is complete changed system meant to trade reversals and trends, due to that i decided to open new thread for it as it does not make any sense keeping it there anymore since it is not scalping system, and from technical side its very different to previous system versions.
[B]What made me go switching from pullback trading and scalping to trends were mostly this features:[/B]
-time managment
-profitability
-robustnes that lies on pure PA, therefore sellers and buyers, rather than looking trough market with indicators
With time managment its obvious that trading takes as much time as usually system takes from us. Some systems take many hours behind computer screen watching before you can even take single trade. Some systems take very few time over whole week, mostly being daily charts trading systems. And some systems take as much time that you want to decide give to and still be just as much profitable than previous two options, now this is always what i wanted to achieve- full flexibility.
Hybrid trading system takes about 15 minutes a day to be profitable with nice profits of 50 pips or more. Full maximal profits achieved trough day can be over 1000 pips if system is traded full time.How much profits do you want to achieve its up to trader and his time managment plan. You can pick pretty much any day randomly and count profits yourself trough whole day on all traded pairs, it will always be strong near or over 1000 pips, which gives everyone option to double account in single week even with strictest MM rules.
System is based mainly on pure PA, reading highs and lows. Indicators are there (Ichimoku and Bollinger band), but they are only option to maximize profits or read bounces better, they however are not required on charts.
If you have trouble reading highs and lows at start you can use Zig Zag v2 or Fractals (default) indicators, but i would only suggest for learning, becouse they are both not very accurate and paint too many micro lows and highs.
[B]On what trading pairs does Hybrid system works?[/B] The answer is all of them. GBPUSD, EURUSD, USDJPY, XAUUSD, GBPAUD, AUDUSD…even Crypto currencies such as Bitcoin or Litecoin, though at current state their liquidity is small and price action is yet not that great. For trading you do not need all pairs, i would suggest using my own pair trading setup which is:
[B]EURUSD, AUDUSD, GBPUSD, GBPAUD, XAUUSD, EURAUD, GBPJPY, USDCAD, USDJPY, USDCHF[/B]. Those are pairs i trade every day. One thing to add is i would suggest staying out of XAUUSD (Gold) if you do not have decent fundamental knowledge and especially if you are yet not good familiar with Hybrid system.
[B]Which trading sessions does Hybrid trading system works in?[/B] The answer is all of them. It does not matter at all if its London, Tokyo or NY session. It works at any time, however it is true that London and NY give more profits due to more market power.
Hybrid trading system is complete overview of market (or pairs) which is very important. From trading system is not only expected to give you entry signal, but to at any moment give you most possible dirrection of price, possible reversal and expectations, this is what preapares you ahead for time planning and orders placing. Hybrid trading system works very well with pending orders trading, pretty much sparing you on trading overall.
For studying of system and getting it learnt properly i would strongly suggest that in first few days you only focous on looking of highs and lows trough historical charts. Do your study as much as possible becouse if you dont get lows and highs right there is chance that entries and SLs will not be placed correctly.
On every entry we use SL and TP placement. It is especially important that you are able to recognize micro lows from real strong lows and highs. Keeping system robust is important.
[B]On what TF does system works?[/B] The answer is all. No exceptions. Due to time managment i am trading mostly M15 and above TFs, but M5 and M1 work just as well, it is only important to know that profit taking rules of first placed order should be less than 20 pips if trading M5 or M1. Suggested for M5 is 10 pips and M1 5 pips.
[B]Rule about placing orders:[/B]
For trading it is good that you follow two orders placement on each entry. This means that you place for example two orders on same price with 0.5 lots each- for example.
First trade follows simple rule of 20 pips TP, second trade is exited only based on system technical rules. Second trade is meant to be “train catcher”. It is meant that we try to get our chance entering on reversals with possible huge trades , it happens often that second trades give us 200 pips or more.
Placing two orders at once increases profitability of system by 100%.
[B]SLs …[/B]
Always place SL on every trade, SLs are completly dynamically picked based on lows and highs, they can range from 10 to 100 pips, thats why risk has to be adjusted on lots.
BE SL is important part of system. As soon as you are 15 pips profitable on trade move BE SL to both trades, this way we dont risk anything anymore.
Alright here is PDF version of system explanations, i had to redo whole thing from before and i kept it way smaller this time, becouse i am not sure everyone will be up to grasp whole other contents, as explained in PDF system in that state is good enough: ( download from link attachments did not work for babypips)
hybrid_system9.pdf - Speedy Share - upload your files here
Or this link:
hybrid_system9.pdf
Good profits to everyone!
