Andrew Forex Trading System

Description of my trading system ″Andrew Forex″

Currency pair: any, but better cross-pairs that give good trends.
Time frame: any, but usually 4-hour
Indicators: supertrend, nonlagdot (value: 20)

Entry rules

Buy: a dot of Nonlagdot changes from red to blue. At the same time dots of nonlagdot should be above the Supertrend line. Also the Supertrend line should be green. A position should be opened by execution of a pending order. The order is placed on the upper point of the market extremum, which is formed after the first rebounce of the market downward (when closing price is lower than previous one). That is one should wait untill the price has exceeded the point of extremum, and only then buy. However, if the price fails to exceed the level of the point of extremum, one should wait. After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to red, the order shoud be canceled.

Sell: a dot of Nonlagdot changes from blue to red. At the same time dots of nonlagdot should be under the Supertrend line. Also the Supertrend line should be red. A position should be opened by execution of a pending order. The order is placed on the lower point of the market extremum, which is formed after the first rebounce of the market upward (when closing price is higher than previous one). That is one should wait untill the price has exceeded the point of extremum, and only then sell. However, if the price fails to exceed the level of the point of extremum, one should wait. After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to blue, the order shoud be canceled.


Market entries without placing pending orders are not recommended.
Pending orders for market entries are placed with the regard of the amount of the spread and additional 3 pips.

Exit rules

I exit when:
1. The price touches the Supertrend line, or
2. The Supertrend line changes its color, or
2. The price touches the first line of the Fibonacci fan. The Fibonacci fan is constructed from the point of the market extremum at the beginning of its movement and up (or down) to the opposite extreme point of the current market, that is, from the bottom to the top of the movement (when buying) and from the top of the movement to the bottom (when selling). It is important not to confuse: the Fibonacci fan is constructed not from the market entry point, but from the point of the beginning of directional movement or trend (up or down). Fibonacci fan line, which is closest to the price, serves as the exit level. And the exit order should be moved on this line.


Stop-loss is set:
1. On Supertrend line, or
2. Below near price swing, or
3. Under (over) the closest extremum of the market, which exceeds the Supertrend line in the opposite direction.

Stop-loss order is placed with the regard of the amount of the spread and additional 3 pips.

The following money management is recommended: either not more than 10% of the capital per trade, or a progressive system (e.g. Fibonacci or semi-martingale). Martingale is not recommended because it is far too risky in case of the lack of capital after several consecutive losing trades.

Adding is recommended solely to profitable positions after the regular change of Nonlagdot color in the direction of the current trend.

Andrew,
Thanks for sharing. Looks like a clean, simple system. Signing up for further study.....

A couple of questions:
1. Don't you think 10% per trade is a little extreme?
2 .What's your experience of E/U, G/U with this?

Thanks,
Kostas.

Does the super trend indicator lag?

And how much pips do you average weekly?

Very true, virtually every indicator out there can do well when it's trending. I was thinking of using with support and resistance and fibs in some way, it looks very useful for entrys, but gotta demo test it over a good period to be sure if its any good.

Or put up a picture of a ranging market then we can all learn more in how to trade/avoid trading when market isn't so pretty

The Trend Magic indy refurbished, good indy for showing the trend....

Give the guy a break, he is just trying to share his method of trading and help others. Obviously anyone can pick a nice chart but why would he want to choose a messy/rangy chart to illustrate how his system works, not how it doesn't work.

Fair play to you Andrew, looks like a simple and easy to understand system so keep posting all your trades then people can decide if they wish to use it.

Cheers
Foggytrader

If Sim you have a better trading method that can trade both trending and ranging, I suggest you going ahead to open a thread to share it to the world and I would be the 1st to take part... or else be just be a silent observer like many others do.

Thanks Andrew for sharing...

To both of u. As said before, anyone can pick those charts and put a simple MA cross and you'd both be in awe...at least put 1 ranging 1 trending surely? Or one of you do it instead of living in the fantasy world that it's always gonna trend like that

Andrew,

Thanks for sharing your system. I found that it shows good results on 1h time frame as well, as 4h chart is not the same on every broker platform.

Thanks.
Knez

These indicators are repaint?

thanks andrew its a great system i think with discipline and good mm(pyramiding) its a winner

Thanks to everybody who approves the system!

I've been working it out very thoroughly. I have come to a conclusion the system must be simple and effective without unnessary additional bugs and troubles. The market should be seen clearly to trade and give the predicted profit.

This system includes, as you noticed, two indicators: Supertrend and Nonlagdot. They do not repaint and do not lag except for the current candle (bar), as well as any other indicator (including the moving average, Stochastic or RSI)! Otherwise, I do not see any reason to develop the trading system with repainting indicators.

As for criticism, please, give the constructive criticism for the benefit of all the participants.

And do not forget about money management and diversification of assets! It supports essentially and helps to go through "the hard times" without unexpected problems.

This system can be effective in trading different currency pairs. In confirmation of my words I give the whole of my trading desk at this time.

Andrew I have attached both indicators to my chart. but could not load template on it. is it mandatory or these two indis is sufficient?

See the image.
Go to your broker's directory.
[1] Store the tpl into "templates"
[2&3] Then store both mt4 into "experts\indicators"
Hope the above help.

Hello Andrew

As a newbie, at times I am not clear about the terms being used.
What do you mean by "better cross-pairs that give good trends?"
How about E-U, G-U, G-J and E-J that I am demo trading with?

Thank you.

Hi Andrew

I wish to have a better understanding about your entry. Your clarification or input is much appreciated.

Pls. refer the image attached for a sell entry in E-U.

Are my understanding (drawing) correct based on your trading guide for both new entry and add entry as shown?

Thank you.

Andrew,

Trying showing more LIVE trades...rather than PAST trades.. (That means..post your chart's pic when u enter a trade and post a another pic when u close that trade)....

http://4.bp.blogspot.com/_jWNhyMUpjS...s400/kitty.jpg


Sonic

Hi Andy, does the nonlag dots re-paint? Meaning if current bar registered a red dot, will this particular bar change to a blue dot after several bars later?

Please refer to post #13.