JAHANAM Trading System - 60-100 pips/day

Trading Systems
1

Hi All,

We’ve stumbled upon a very interesting trading strategy, thats focused on the concept of “Scaling” or “Averaging”. For those that don’t know Scaling occurs when a position reverses on you, and you buy again in the direction of the original trade.

For example, You buy EUR/USD at 1.4200. The price goes down to 1.4180, so you buy again. And if the price goes to 1.4200 again, the first position breaks even, but the second position gains 20 pips.

So here is the strategy:

1.) Trade during the Asia/Australia session to avoid major market movements.
2.) Currencies: EUR/USD & GBP/USD.
3.) Indicators: 4 Fibollinger Bands, Volume, MACD, Support and Resistance
4.) Time Frame: 1 minute & 15 minute.

Since the market for the currencies during the Asian session is relatively stable, they follow nice Support and Resistance levels on the 1 minute chart.

You basically keep your eye on the other indicators, to see if they are following you in the right direction, and then you pull the trigger when the price gets to the Support & Resistance points.

For the indicators on the 1 minute chart, we use Support and Resistance with lookbacks of 50 and 200 candles.

Today (Evening of 2nd September 2009 EST) on the GBP/USD, the price crashed from 1.6300 to 1.6253. Every 10 pips, we would buy along the way down. We ended up making around 80 pips in total on the trade.

This has worked for the past several months, and is recommended for traders who have large margins in their account.

Good luck, and Happy Trading.

Jahanam!!!

2

Holy cow man! that sounds hardcore!

I’m going to give it a shot tonight. If it fails its all on you!

3

this seems quite interesting… in other words, your stop loss management system needs to be very air tight to keep any negative trades under control…

im looking at demo testing this strategy in the next couple of days, but looking at my indicators now, i can see how it would work.

Have you considered doing this when its converging and instead of waiting to see which direction its going to break, just open in a certain direction and stick to your guns until it comes back, averaging every couple of pips… as they say, the charts never lie!

clearly this is a complete game changer, as you just keep averaging and the worst that can happen is you break even when it comes back a little bit…

wish there was an auto-trader that could do this.

good job madar, thanks for sharing Jahanam!

4

well… what can I say about your system. I lost $20 over the weekend. Got 4 margin calls so far, and down 200pips right now. So ummm… yeah I think I might try something else.

5

Hey bagher,

Sorry about your loss. The key is to maximise your loss to 2% of your account. Once you are down 2%, then close all.

Basically, you should make sure that you start off small enough so that you don’t quickly reach the 2% account size.

On Friday I made 185 pips, all from the Jahanam system with the news that came out.

Good luck!

madar