The Totally Awesome Forex system!
I’m not American, nor do I watch American teen movies,
but I thought I would irritate myself by giving this system
a name I will remember.
I’ve had so many million dollar insights, that I usually forget
within 24 hrs
This time, I really want to get this down with as much detail
as possible
because, if I don’t do it now, while it’s still fresh, it will just get
forgotten
Of course, nothing is original. This system borrows from my own
work over last year with the Bands. They are still one of my main
criteria in making trade decisions. but I have been helped by
the Nexus system by Russ Horn, Las L. is great, especially his
Envelope strategy and explaining about the ADX cross, and Cynthia
Macy expands on the ADX theme.
This is starting to sound like an Oscar speech
So I will upload the screenshot first and give rules and comments after,
but first, I want to remind myself of something that just came into my
head - a system that utilizes the autofib trading zones with the Bands.
it completely conflicts with totally Awesome, so I want to check that
out later
meantime, here is the TAFS
You will note the vertical lines on both templates
we will call upper Bands and lower Nexus
On Nexus, CCI is bearish so we are only looking to go short
On the first example, Price had been moving down consistently,
and trend Strength indicator might be useful here, then price retraces
up to the 61.8 Fib level. is is time to resume the downtrend?
On Bands template, price moves out above both Bands and Envelopes
and then re enters both with a Bearish Momentum bar. This happens at the
cross of ADX. Not quite crossed? very good point. Cynthia Macy uses the
expression regarding ADX ’ cross or kiss’. Las L. only referred to a
clean cross of green over red. ( Big E I believe noted a similar situation
on the TDI )
but a ‘kiss’ can be a touch where one line bounces off another that can
be as insightful as a straight cross
so imagine two scenarios on ADX.
green is moving down and decisively crosses over red, green keeps
moving down and red keeps moving up denoting rise in volatility
or Green is moving up, kisses Red, recoils back down and Red recoils
back up,
In both cases a sharp divergence has occured and would seem, to all
intents and purposes, to be identical in outcome
Would you believe this! I just checked TDI, not part of the TAFS, nevertheless
on each of the vertical lines TDI green crosses perfectly over red, above 50
level crossing down!!
So now we have the Totally, Sick, Wicked, Awesome Forex System
yup, that’s irritating enough to remember
Before we leave the Bands template, the big question is, how many pips
to Distal Envelope or Band? is the risk worth the reward?
We have 24 pips to bottom Envelope, no deal, but 74 pips to Distal Band
which is hit six times before price moved up
So now, looking down to Nexus Template, we are following the Red Line of
the CCI histogram. We need to see that red line Cross through, either down through +100 level, or up through the - 100 level.
The other two examples are very similar to the first
but here is an all important distinction
On second example, distance is 50 pips to Distal Envelope, but 116 pips
to Distal Band, you could have TP1 AND TP2, it would suggest that
but the third example is even more interesting:- distance to Distal Band
is a mere 24 pips, no deal, but a worthwhile 48 pips to Distal Envelope
which is always hit, as often as Bands, but it doesn’t shift about
In actual fact, there is unlikely to be a problem with Bands in this system.
Yes, there can be a problem with Bands, but that only really happens on either
Lower time frames, or when Trade drags on for weeks on Higher time frames
So here is probably the real highlight of this system, one that takes away 90%
of the stress of trading, it is really 100% mechanical.
especially knowing when to Exit. If there is sufficient pippage available,
target Distal Band or Distal Envelope, and if both are worthwhile, consider
setting TP1 and TP2.
Making it completely Set and Forget, which is what I need.
for a Mental Stop, you might consider getting out if price closes
back into the Envelopes, or use that as a warning sign, and get out
if ADX Green crosses back over Red.
Of course that would need monitoring so would not be set and forget,
in which case use very small Lot size and wait for TP to be hit, or
place hard stop above thr recent swing High/Low
I don’t like hard stops, but I do need to set and forget.
So now finally, all paid clients of TAFS, can get the upgrade to
the Totally Sick, Wicked, Awesome Forex System for a massive
50% discount! or in other words, pay twice for something thats
already freely available, and takes 10 minutes to put together.
Here is how it looks:
I’ve combined
