Downloaded your guide to give it a shot on my demo account, ive just started trading and have been looking for some kind of “system” to get used to forex. Nothing ventured nothing gained…
fxscalp - unless its the TW_TrendSignal, you shouldn’t be seeing any red MAs.
I should mention that I’ve found the markets very difficult over the last week - no real trends, just periods of sideways consolidation then sudden sharp moves of a hundred pips or more. Sure, the “breakout” entry in TW allows you to get onboard those spikes, but its a hard way to trade, and the trend entry methods are useless (and dangerous) if there is no trend. Perhaps its just the time of year and things will improve once the holiday season’s over.
Thanks for sharing your system.
I was planning on trying it out for the next few weeks. I guess it’s a bad time to do so?
Hi Sam, it certainly doesn’t hurt to try it out, but I wouldn’t be doing so live or reading a lot into it if tradeable trends don’t develop. One thing I’m really trying hard to learn is how to stay on the sidelines and NOT trade when there’s no clear signal to do so, and I’m viewing the current markets (unless they improve) as a chance to practice that skill.
Thanks Slipshod, I’ve deleted the SMA and look forward to working with the TWs.
Dave
ok, so i think would deposit 1000$ with leverage 1:100 . i’ll trade from 07:00 GMT to 16:00 GMT so i can intercept NY and London session. Time frame 30 min.
maxe an example, To avoid margin call what would be my lot size? 0.1?
in case of bad move, what’s my stop loss?
othwer two question from your manual, could you explain this rule:
“End of Bar: This little gem is essential in my view, whatever strategy you follow. Simply its a countdown until the current candle ends. I prefer to enter close to the end of the current candle, rather than taking a risk early in its life or mid-stream.”
and:
“Stochastic Rainbow: In conjunction with the ATR channels, this is used to identify points at which to take profit”
in this case you intend point where enter or exit a trade?
and then, extreme high ATR channels will identify an exit or enter trade? in some chart of your manual if trend (red line) was going up you have entered buy trade in middle line (pink line) but often in extreme ATR channel. But main rule was price always came back to middle, so i make some confusion.
thanks
Claudio
Again, if you haven’t demo traded the strategy, why would you go live with it? If you have demo traded it, you’ll already know the answer to your question. I’m certainly not going to advise on lot sizes needed to avoid margin calls!
in case of bad move, what’s my stop loss?
I think I explained where it was logical to place stops in the manual. For pullback entries, its just below the recent swing low upon which you entered (if in an uptrend) or swing high (for a downtrend). For other entries, its a tight stop with a move to cover breakeven as soon as possible.
othwer two question from your manual, could you explain this rule:
“End of Bar: This little gem is essential in my view, whatever strategy you follow. Simply its a countdown until the current candle ends. I prefer to enter close to the end of the current candle, rather than taking a risk early in its life or mid-stream.”
As a general principle for any trading strategy I believe its good to enter either right at the end of a candle’s life or very early in a new candle’s. This indicator merely tells you how long before a new candle is created.
“Stochastic Rainbow: In conjunction with the ATR channels, this is used to identify points at which to take profit”
in this case you intend point where enter or exit a trade?
and then, extreme high ATR channels will identify an exit or enter trade? in some chart of your manual if trend (red line) was going up you have entered buy trade in middle line (pink line) but often in extreme ATR channel. But main rule was price always came back to middle, so i make some confusion.
Extreme high ATR channel + extreme high Stochastic, or extreme low ATR channel + extreme low Stochastic - both of these are clear exit points. I’m not sure where the confusion with entries comes from?
I’ve checked the entry points in the manual, specifically pullback entries which is what you seem to be referring to, and to me they make sense. They all happen to be uptrends in the examples I showed, and in none of the entry points was the stochastic overbought. All of them showed the price around the middle of the ATR channels, not at extremes. So I’m sorry but I’m not sure what you’re asking here - perhaps you could illustrate with a chart?
ok, now, at the start of the day when doing your initial analysis, do you check last day/wekk/month trend?
I keep in touch with monthly/weekly trends, though I don’t need to check them every day as they don’t change too quickly. It certainly pays to analyse the big picture on the longer timeframes to know what their trend is, whether the trend is changing or if they’re oversold/bought and if any key support/resistance areas are coming close.
ok, i’m a bit confused what timeframe to compare. M15 - H1 - D1 are right? I’m trading on M15 righ now.
i’ll attach an example. M15 it’s clearly an uptrend so i’m looking for a long entry from pink midline to extreme ATR but H1 and D1 are downtrend.
What i’ll do?
in M15 i can see at the end of graph a time with red M1 M15 M30. What does it mean? the end of candle?
when trend is going up but stochRainbow is going down, what means? continue entry long?
hi,
I can’t open the zip file. It comes out as a garbled mess in notepad! Can anyone help?
Wild shot in the dark, is that your .zip file extention isnt associated with a “unzip” program so as a result your operating system is trying to open it in notepad by default. I used winzip and it opened it without a problem, I’d suggest downloading a zip program or confirming your associations in your system setup to confirm things are working as needed.
On a side note though, I’ve been playing with with this system on during the early asian trading window on 1-5 minute timeframes and while I seem to have terrible timing trying to gain entry onto a trend via a pullback entry I have had good results trading on the trend change entry.
Thinking on a short time frame that the pullback entries are much for dynamic and harder to call and i’ll largely stick with the trend change entry. Then again, its called the “Training Wheels Strategy” so I’m pretty new at this, a more experienced trader may have expertly chosen an awesome entry point 
-Hamno
thanks,
it was in my start menu/documents also. I right clicked opened with winzip. I’m at work though so will try at home later. One thing though do the indicators transfer (or something) into the MT4 software without any problems?
Hi slipshod,
first of all thank you very much for sharing this detailed strategy of yours! The manual makes up for a great read and I am looking forward to trying out your ideas and following your detailed posts over at your blog. I am a newbie myself although I have read quite a few books over the past few months and am willing to get into ‘real’ forex action in early 2012 when my work schedule permits me to do so.
Currently I am reading Agustin Silvani’s ‘Beat the Forex Dealer’ which I higly recommend to anyone trying to find the broker that works for him/her the best.
I am yet indecisive which broker will suit my needs as I am trying to avoid any scammers and brokers that stop you out unjustifiedly and give you false price feeds.
May I therefore ask which broker you use for the training wheels strategy?
Thanks for sharing the strategy again and best of luck for future trades!
Best regards from Germany
If you choose a “market maker” broker such as Oanda or IG Markets, they reserve the right to quote you fake prices to suit their own ends. And yes that means stop-hunting. Its rarely a problem if you trade on longer TFs with small order sizes and larger stop losses, but on small TFs it could be deadly.
So you want a straight-through processing (STP) broker with no dealing desk. However some of those are known for exaggerated increases in the spread to catch your stops, even if the quoted prices are correct.
For me, in Australia, I use a local broker called Pepperstone - tight spreads and no stop-hunting, however their order-processing performance is declining and I’m getting a huge number of disconnects so it might be time to look elsewhere. If in doubt, check the reviews on Free Forex Trading Community With Forex Signals And Broker Reviews, they have feedback on many brokers there.
I haven’t been able to respond here much or post on my blog lately, hopefully will have more time/energy soon 
Edit: You also want a broker who is regulated by a government agency of some sort in whatever country its based in, and that segregates client funds into a separate account from their own money. Even better if they guarantee you’ll get your money in the event the broker goes bankrupt.
thank you very much for the insight and help! I will certainly look into it and your strategy just seems perfect for starting to demo trade for me
I will certainly let you know over at your blog if I am making progress in the right direction!
thanks and best regards
@slipshod
please how can i apply this solid system to my trading,am into applying indicators to the chart.and using them as a system.but this your system is a little bit confusing,moreover i cant find some of the indicators in my indicator list,am using metatrader 4.pls can you help me with step by step on how to use your system,am a beginner.and am only battling with moving average systems.i hate demo account,so i battle with my real money with the minimum lot and leverage.i need a system to practice,please i need your help.i also need to know how to add indicators to my chart,cause this system is in zip format.please anybody with a good explanation is highly welcomed.you can reach me through
([email protected])
You need to unzip it first - see the posts above.
Then install the indicators by opening an explorer window, opening the folder where MT4 is installed and copying the indicators to the experts\indicators folder inside. Restart MT4, and the new indicators should be listed under Custom Indicators in the navigator window. Double click them to add them to your chart.
If this isn’t clear or you have problems, please post exactly what you’re doing & I or someone else here should be able to help 
would the system work well for someone who doesn’t trade too frequently (4-5 hours in a week, perhaps)? Just curious as it looks like this is a well-received system, judging by the comments here.
In theory it works equally well trading monthly, weekly and daily charts as it does the 5 minute (or equally poorly - a lot depends on the trader!). With 4-5 hours a week you’d have to be looking at longer timeframes like these, with small entries and large stop-losses as you can’t sit around waiting for the ideal entries.
If the theory and concept of the system make sense to you and suit how you’d like to trade, there’s no reason why you couldn’t use TW on long timeframe charts. Perhaps I should try it too, I’d probably do a lot better than I have been lately on low TFs.