Positioning yourself for Success (Advanced Trading Philosophy)

Hello......

I would like to take this opportunity to reveal to you my trading philosophy. I have posted one or two methods around the forum, but thought I would put everything together on one thread. This is no over night task, and I will add more when I get a chance.

My guess is that 99% of you will not even give this method a try. Why?.....because it takes time everyday to place your trades and to manage open positions. In fact if you traded all pairs (within reason) you could spend at least 2 hours per night once you've learned what to look for. And guess what.....this has got to be one of the most boring things to do in your life. Night after night spending 2-3 hours preparring for tomorrows trades, but....when I am done, the rest of the time is all for me because there is no in-between monitoring needed. In fact, my nightly encounters with my trades have become in ways therapuetic and indeed has changed my life for the better. Trading? Therapuetic?

What I have done I have mostly taken from others and then modified it (for better or worse) into something that works for me. My biggest thanks go to the books I have read by Bill Williams. His philosophy struck the right chords with me and although I also use his indicators, I use them (for the most part) in an entirely different manner then he did. Other things I have gathered along the way, some from people on this forum and I am eternally greatful for all that they showed me.

For the longest time I bought everything I could get my hands on. Learned everything I could. Read everything that had to do with trading. Last week my best friend called me and showed me an e-mail he had gotten regarding Forex from a company offering good returns and blah, blah, blah. He encouraged me to check them out. After doing some reasearch and talking with this company, I told my friend that I didn't think I needed to do any more purchasing of anything. This was a milestone for me and one of the reasons I decided I was ready to put this all down on paper and share it with all of you.

Trading is a very fluid thing and many things can be open for personal interpretation. I as well am looking for ways to make this better, and so you may find that some things may change from time to time as I come to other conclusions. I will of course notify you when anything changes.

With that said, I hope that you enjoy this thread. I am doing this as much for you as I am for me, basically on the premise of what one man said...." when I share knowledge with others I learn it twice".

If you are wondering what my main philosphy is, well here it is: to not lose my money when the market is ranging and to make a killing when the market is trending.

This system utilizes right now at least 10 different entry points, multiple entry points into the market which can mean thousands to tens of thousands of dollars in profit in a trending market.

So enjoy my thread and I look forward to any comments that you would like to make as we go along. Also, I will eventually hopefully get to the point where I will upload nightly charts and will of course be around to answer any questions that you may have.

Let's have some fun together and make some money.

This section deals with the "non-changing" variables that we will take into account when entering a trade.

Charts: Daily

Pairs: Any ones that you want to trade

Platform: MQ4 will work fine for some of the indicators, but it will also be best if you are also able to use a platform that Does Not have a Sunday bar. I use V-Trader for this. You can google it and get a free account. I will mention specifically which trading methods you should use a platform without a Sunday bar when I get to that specific thread.

Indicators:

1. Awesome Oscillator (AO) with default settings. This indicator can be found by clicking Indicators-Bill Williams of your MQ4 platform.
2. Accelerator Oscillator (AC) with default settings. This indicator can be found by clicking Indicators-Bill Williams of your MQ4 platform.
3. Silver Trend Indicator (ST) with default settings. You may however want to change the colors of the dots. To me they were backwards. Please note that this indicator does repaint itself, and so it can be at times hard to pinpoint the exact use of this indicatror.
   Attached File

   SHI_SilverTrendSig.mq4   4 KB | 1,269 download
4. Non Lag indicator (NL) Under settings change "color=0" and "colorbackbar=0". Leave everything else as it is.
   Attached File

   NonLagMA_v4.mq4   5 KB | 1,220 download
5. Stochastic Oscillator (SO) with settings at 5,3,3. You will also need to identify levels at 91 and 7. You will want to drag this so it overlays your Accelerator Oscillator. You can do this by going to the "Navigator" section of your platform, find Indicators-Bill Williams-Accelerator Oscillator and "click, hold and drag over the Accelerator Oscillator on your chart.

Here is a screen shot example of what a chart should look like:

S/L Zones: For the most part, with every trade that we enter we will place a hard stop at the Low of the set-up bar -1 pip for long trades and the High of the set-up bar + spread + 1 pip for short trades. Anything that differs from this rule will be spelled out in the section for that particular strategy. You will need to adjust your MM accordingly as this number can differ from trade to trade.

When to exit a Position: There are basically three different exit strtagies that you can incorporate into this trading technique. There is an Early Exit, a Timely Exit and a Trend Reversal Exit. There is also an Early-Early Exit which to me is just silly so I won't be going into that one . As time goes on I hope to be able to better state when it would be better to use one exit strategy over the other, but for now I will give them to you as I see them.

1. Early Exit Strategy: This exit strategy is signaled when there is a ST dot that formed at the close of a stick and the NL has closed in Yellow. Once this exit strategy has been signaled, you would then place your close orders 1 pip + spread at the high of the bar that just closed for short trades or at 1 pip below the low of the bar that just closed for long trades. These signals will rarely come on the same bar. most of the time they will happen on consecutive bars.
2. Timely Exit: This exit strategy is signaled when the ST dot and the AC are aligned on the close of the same candlestick. If you look at the chart above you will see that my upper NL dots are colored Red and my lower NL dots are colored Lime. This means that for me to consider closing a long position I would need a red NL dot and the AC red on the close of the same bar only. And...in order to close a short postion you would need a green NL dot and the AC green on the same bar only. Once again you would then place your close orders 1 pip + spread at the high of the bar that just closed for short trades or at 1 pip below the low of the bar that just closes for long trades.
3. Trend Reversal Exit: This exit strategy is signaled when the NL dot and the AO are the same color. This change will rarely happen on the same bar. Most times the NL dot will precede the AO. You would exit a long trade when the NL dot is red and the AO has gone to red. You would exit a short trade when the NL dot has gone to green and the AO has turned green. When this happens, you will simple exit the market at the open of the new day.

These exit strategies were last updated on 02/24/08

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