Hello!
I would like to share a system, that I am developing. It is not fully completed, I am also use and test it on demo, but it works very well.
It is a breakout strategy, and derived from borovsky's forex surfing strategy, but a little modified.
The basic strategy is:
If there is a trend, and You see a retracement, put an entry order above/below the last low/high.
Don't entry, if the trend is not strong enough, if the spread is too large and swing size is too small, if the trends is likely ends soon (long term trendline, or within large triangle or chanel it is close to the other side, etc.). It works well after a relatively long-term consolidation break out, after news, or other strong movement.
sl and tp (that I added to this strategy):
Set the fibonacci levels to this: -1.618, -1.0, -0.618, 0.0, 0.382, 0.618, 1.0, 1.618, 2.0, 2.618
Put the fib to the retracement as you see on the chart attached. The best in this fibonacci method, that You shouldn't decide, which low is the most significant. You see the retracement, and after putting the fib, you will see, if it is connected with a recent low.
(In an uptrend
When You see, what level was the last low, imagine, what level will be the next high, and put the tp at that level. If the speed of trend is not change, You can simply mirror the last low level, and it will be the next high. The chart below (it is a real chart in time of writing) is a good example of this. The last low is 100% of the retracement, and the next high is also 100% of the retracement, so the trend is not slowing. If the trend likely will being slower, You can put the tp at the 62% level above the retracement.
The stop can be set at the retracement level, or at one of two line between the last high and the retracement low. You can guess, that if You set the stoploss to small You will more likely be stopped out. You can set smaller stop, if it is a strong trend, or You cannot risk more money. I made 6 variation depending on what is the tp and sl levels.
The name of stops and targets is:
2.618 - t1
2.0 - t2
1.618 - t3
1.0 - entry (last high)
0.618 - s1
0.382 - s2
0.0 - s3 (retracement low)
var1: s1+t1
var2: s2+t1
var3: s3+t1
var4: s2+t2
var5: s3+t2
var6: s3+t3
For strong trend You can use var4-var6, for light trend You can use var1-var4, if You want smaller stop, and the trend is strong enough, You can use var1, var2, and var5, that have smaller stops.
Timeframe: any
Instrument: any
I personally like to use it on M1, and nasdaq, sp500, and dow e-mini futures, because on the FX Pro JPY based account the spread is very small, the commission is only 2 Yen (On USD based it is $1,5) ), and compared to this the moving is very fast, that I like.
This strategy is not fully completed, so I would like to share, and also discuss it with you. If you can add something to this strategy, write it.
I also have a fibonacci timing theory, that I will write later, and have an EA (not for automatic trading), and script collection, that helps you to trading faster.
Please don't use this strategy on real until you tested on demo.
I would like to share a system, that I am developing. It is not fully completed, I am also use and test it on demo, but it works very well.
It is a breakout strategy, and derived from borovsky's forex surfing strategy, but a little modified.
The basic strategy is:
If there is a trend, and You see a retracement, put an entry order above/below the last low/high.
Don't entry, if the trend is not strong enough, if the spread is too large and swing size is too small, if the trends is likely ends soon (long term trendline, or within large triangle or chanel it is close to the other side, etc.). It works well after a relatively long-term consolidation break out, after news, or other strong movement.
sl and tp (that I added to this strategy):
Set the fibonacci levels to this: -1.618, -1.0, -0.618, 0.0, 0.382, 0.618, 1.0, 1.618, 2.0, 2.618
Put the fib to the retracement as you see on the chart attached. The best in this fibonacci method, that You shouldn't decide, which low is the most significant. You see the retracement, and after putting the fib, you will see, if it is connected with a recent low.
(In an uptrend
When You see, what level was the last low, imagine, what level will be the next high, and put the tp at that level. If the speed of trend is not change, You can simply mirror the last low level, and it will be the next high. The chart below (it is a real chart in time of writing) is a good example of this. The last low is 100% of the retracement, and the next high is also 100% of the retracement, so the trend is not slowing. If the trend likely will being slower, You can put the tp at the 62% level above the retracement.The stop can be set at the retracement level, or at one of two line between the last high and the retracement low. You can guess, that if You set the stoploss to small You will more likely be stopped out. You can set smaller stop, if it is a strong trend, or You cannot risk more money. I made 6 variation depending on what is the tp and sl levels.
The name of stops and targets is:
2.618 - t1
2.0 - t2
1.618 - t3
1.0 - entry (last high)
0.618 - s1
0.382 - s2
0.0 - s3 (retracement low)
var1: s1+t1
var2: s2+t1
var3: s3+t1
var4: s2+t2
var5: s3+t2
var6: s3+t3
For strong trend You can use var4-var6, for light trend You can use var1-var4, if You want smaller stop, and the trend is strong enough, You can use var1, var2, and var5, that have smaller stops.
Timeframe: any
Instrument: any
I personally like to use it on M1, and nasdaq, sp500, and dow e-mini futures, because on the FX Pro JPY based account the spread is very small, the commission is only 2 Yen (On USD based it is $1,5
) ), and compared to this the moving is very fast, that I like. This strategy is not fully completed, so I would like to share, and also discuss it with you. If you can add something to this strategy, write it.
I also have a fibonacci timing theory, that I will write later, and have an EA (not for automatic trading), and script collection, that helps you to trading faster.
Please don't use this strategy on real until you tested on demo.
