Saxobank trading system

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1

Hi guys,

I just went through som videos about trading at SaxoBank. CAnd I thought I should share it with you guys, Its rather simple, and I am running som backtests on it now to see how it works out…

Anyway, it uses a simple moving average(89, close) for direction on the 4hr timeframe(look for buys when the ma is going up, and sell when it points down)

The entry signal is a trend following divergence on a oscilator/momentum indicator, Saxobank suggested the Stochastics(14,3,3) to be used at the 15min timeframe.

Saxobank does not say anything about what type of divergence to be used, but I suggest that in an up-trend(the MA is pointing upwards), you look for higher lows on the 15min chart, and lower lows on the oscilator for the divergence.

In a Down-trend, look for Lower highs in price, and Higher Highs in the oscilator…

I Dont know if this is a profitable strategy(Saxobanks trader that held the webinar sad he used it everyday, and that it gives him a signal every 2hours or so, and he always used a 30pip stoploss)

A little bit about moneymanagment…
I never risk anything more than 2%, and always splits it in 2 orders, both on a 30pip stoploss, but one of them is set for a 30pip take profit, and when that is hit, I move the stop loss on the second order to BE(the price you bought on). And then trail the stop loss manually. I do this by moving it to the 2. last swing high/low, so that the price is allowed to take out stops on the previus high, before moving further down.

Ill post some pictures in my next post :slight_smile:

2

[EDIT] These are just example of divergences, and not necessarily valid buy/sell signals, that also requires the MA to be moving up(for buy) or down(for sell).

Here is a trend following Buy signal:

trend following divergence.jpg700×500 43.3 KB


Notice the Higher Low in price, and Lower Low in the oscilator? (The oscilator moves to more oversold, at the same time as the price makes a higher low

Here is a trend following Sell signal:

trend following sell signal.jpg700×502 44.4 KB


Notice the Lower High in price, and the Higher high in the oscilator?

Good Luck and Good Trading :slight_smile: Ill come back with some backtesting when Im done :slight_smile:

3

Hello Richard,
Thank you for information.

It would be great if you can give us a link to the webinars.

Thanks and happy trading

4

It’s a set up that’s been around in various forms for an awful long time.
The first example that I saw of it being utilized effectively on here was by a couple of the guys on the Technical Templates thread & I notice it’s been subsequently picked up & referred to in different scenarios by others over time on Babypips.

As you’ve alluded to, the primary filter is executing it in sync with an identifiable bias or trend, which helps to mitigate risk & increase the probability odds.

According to, & based on your trend filter, the second of your examples showing a short on eur/usd off the 2730 level on the 15m chart was a valid entry set up.
I’m not so sure the first example going long around the same level on the 14th was in line with the structure though?

Price at that time was still trading underneath the 240m/89sma with the average sloping bearish/neutral. Price didn’t really start to flip to a bullish tone (based on your primary filter) until the 2nd 240m higher low traded through the 89sma on the 21st November.

You might want to proceed with caution when trading lower timeframe triggers off higher timeframe filters. The filter is supposedly there for a reason & the intention is to ensure you’re honoring order flow dominance whilst adhering to a disciplined, logical structure.

Unless you’re experienced or fleet of foot, ignoring or short circuiting that structure could very easily dilute the forward potential of your otherwise effective & efficient set up/trigger combination.

5

Hi Richard,
if we don’t known the kind of divergence then we can’t trade the system. Also what you have describes is a setup but with no trigger. I mean What is the trigger to go long or short?
So I also agree that it would be nice to see the webinar so as to get the complete strategy.

6

what do you need him to feed you the info for?
use some initiative, tap ‘trading webinars at saxobank’ into your search browser & hey presto!..up comes a link where you can access a series of videos presented by Tom Hougaard.
scroll to chapter 12 & you’ll see/hear him summarize the complete deal by explaining the reverse divergence set up mentioned by this guy in his first couple posts.

tom is a former senior dealer/market maker on the european spot desk @ city index & as has traded the reverse divergence set up (amongst others) as one of his intraday plays for a number of years.

as laine mentioned, this type of micro/macro dual combination set up is a favorite amongst discretionary traders, particularly when looking to leg back into defined higher timeframe pullback moves via a micro timeframe trigger.

7

Hi guys, thanks for your replies, and Im sorry for the confusion… the images was not supposed to be a valid sell or buy signal, they were just ment to show how how a trend following divergence was, with Lower Highes in price and Higher Highs in the oscilator.

Thanks for pointing that out.

Second, the main filter is the MA wich needs to be moving uppwards to be looking for entrysignals on the oscilator, and moving downwards to be looking for sell signals in the oscilator.

Hope this clears tings up a little bit :confused:

[EDIT]
here is the link for the specified video:
Webinars[iframes]/10/

8

Aloha, I am pretty new at this. How do you split your orders??? When I put a 2nd order in for the same pair, it just gets added in w/ the first order on that pair? I am trading on FXCM.
Mahalo, Cynthia

9

I dont know anything about FXCM, but if you are using MT4 and the orders still get merge(never seen that on my MT4) you could do this,

Open the dialog box for closing orders, and there change the lot size before hitting close, this should just close the lot size you have specified, and the remaining should still be active…

an alternative way wich commonly work is if you buy 2 lots(for simplicity), you could just sell 1 lot… that should work…

11

Hi Richard
How did your backtesting go please?
I am also looking at this system, was wondering if I got it right
We look at 4 hour chart for overall direction (trading below/above 89MA(which in turn is pointing down/up)) when the oscillator shows the reverse divergence , we fine tune to lower timeframe (15 or 30 minute) to fade the move against the lower timeframe trend in the direction of the higher timeframe?
Or do we need to have the identical setup on the lower timeframes too? I have watched the webinar few times, and admittedly didn’t manage to understand this part.
Thanks for your time