The Nomad System - by TheJube

Introduction (excuse me, it is the first thread i start on FF, so if it looks slightly clumsy, then that is why hehe):

A short story about me and my (trading) journey:

This system is developed by me (TheJube).
I am 29 years old, originally from Amsterdam, Holland, half Dutch and half Algerian.

I was always obsessed by trading. When i was 15 years old (14 years ago), i remember that i lost my first 50 euros on Etoro (a forex trading website). That created a spark in me; i knew if i can lose 50 euros in a split second, the other way around will also be somehow possible.

With this spark in me, i have analysed charts every day, every night, for years. I have read almost every single system on FF for the past 10 years. I had ups and downs, learned alot, and now i think and feel ready to share my own system.

I studied Child Development/Edcuational Sciences at the Unversity of Amsterdam. During my studies i started working in a dutch known Bank. This type of life disgusted me; going to an office where hundreds of people daily come and go, not seeing any sunlight for weeks/months, made me decide to leave Amsterdam (i still love it, but you get the point). I said goodbye to my Dutch life and banking career in 2023, and together with my girlfriend, we bought a camper and started to live off-grid, self sufficient, hopping from one beautiful place to the other as Nomads.
We are in Portugal now enojying our best life as „Nomads“, hence the system name. Also, i am half Algerian, where the Touareg people live, which is a nomadic group of people living from their environment, hopping from place to place.

During my trading journey i also hopped from system to system, as a Nomad. This did two things:
1. I gave up early on systems, hopping from one the the other. I was looking for the Holy Grail, which in the end does not exist.
2. Since i was/am relatively young, my brain absorbed every single indicator/thing in trading pretty quickly, which gives me the ability to put up systems together relatively quick. This was a good and bad thing; it made me hop quickly from one system to another. A positive thing was that i have alot of knowledge about all the indicators/things in trading which made it easy to understand systems pretty quickly and know if it works for me or not. Example; ICT is not for me. It just is not my thing. If it works for you, then i am very happy for you of course.

Now i got a bit older (29), and realise i had to put up a system (entry/exits/money management etc.) that suits me as a person and trader. I did this now with the Nomad system, which works for me. Note: it could be that it does not work for you; then i hope that just as i did before hopping from system to another, you will pick something (s) from my system, that you can use to put into your own system that suits your personality/trading. If i achieve only that, i will be very happy.

Before going into the system itself, t I want to thank some people who contribute(d) a lot of useful information and insights on FF that have helped me alot: RickM, Machinelearn, Minotawr, Chamane, Pips29, Vidvad, Forexalien, Ghbdr, Inthebox, Likica, Varun, Rocky, and the list goes on and on. Many thanks to all of you, contributing in a positive way on FF.

The Nomad system uses some things from other threads on FF, which i will mention as well so you get a slight idea of it. Also i advise you to take a look at their system(s)/trading:
-Minotawr / MA100: https://www.forexfactory.com/thread/...9#post15033819 From here, i got the idea of my entry candle and entering on the high of a candle instead of the candle close. I will dive deeper into this later.
-RickM+Machinelearn: https://www.forexfactory.com/thread/...-go-mtf-system From here, i got the MA periods (fibonacci numbers), the idea of them being stacked etc.

The system i am going to show you includes: Chart setup (template, settings, indicators you need/can use), Entry criteria, Take Profit/management of the trade, risk management (for getting Funded for example, or how not to not blow your account), what to do with news/overnight trading, and a little bit of fun (life is all about fun and living your best life!)

So let’s start!

Look at the above chart: we do not use this chart, but just for illustrative purposes, so you get the idea:
Red = 89EMA, white = 55EMA, blue = 34EMA
It says enough; we want to be trading with the trend when these three moving averages are stacked in this order, with the Nomad System

This is the same chart (GBPUSD M1), and this template is the one we will use; this is the Nomad system chart. It shows the histograms below (which are the MA crossess explained and illustrated above)

What we want is a pullback within the main trend. We use the following indicator(s) for that:

Trend should remain in one direction:
Indicator used: 3 Histograms:
This indicator is 3 times on your chart. It is a non lagging indicator (if a candle has closed, the color will always stay the color that is was). It shows the following MA crossess:

The upper one is set to 55 EMA and 89 EMA: if 55 EMA is above the 89 EMA, it is green. If the 55 EMA is below the 89 EMA, it is green.

The middle one is set to 34 EMA and 55 EMA: if the 34 EMA is above the 55 EMA, it is green. If the 34 EMA is below the 55 EMA, it is green.

The bottom one is set to 34 EMA and 89 EMA: if the 34 EMA is above the 89 EMA, it is green. If the 34 EMA is below the 89 EMA, it is green.

Pullback:
The orange and red arrows indicate pullbacks. We have two type of pullbacks, which can be traded:
The red one is leading, which means if the red arrow appears, the orange one is neglected if we are not in a trade yet (still looking to enter). It will be explained in more detail later.

The orange arrow indicates a cross of the 5EMA and 8 EMA. This is a short term pullback.
The orange dot on the chart is a touch of the 21EMA.
The red arrow indicates a cross of the 8EMA and the 21EMA
The red dot on the chart is a touch of the 89 EMA.

As you can see, price usually retraces either to the 21EMA (orange dot) after a 5/8 EMA cross (orange arrow), and moves back up from there.
If price pullbacks deeper, we see a red arrow (8/21 EMA cross), and price usually retraces to the 89EMA (red dot), before going up again.

We will capitalize on this repeating market movement.

So if all histograms are aligned (all green), and we have an orange or red pullback into the MA’s (orange arrow + orange dot, or candle close below orange MA // OR a red arrow + red dot, or candle close below red MA), we can look for an entry candle. Examples will be shown later.

What is the entry candle?

An entry candle is a candle that has a low that is lower than the previous candle.
If a newer entry candle appears, then this new one will be the entry candle and the previous order that has been placed (and not triggered yet), will be deleted.

All above checked criteria should stay the same (ie no histogram color change, no red arrow appears when you are entering on an orange MA touch)

If the current candle (which is still open), and that low is lower than the previous low, then wait till candle close before placing the buy order above the high.

If a newer entry candle occurs, then this new one will be the entry candle: recalculate your lot size and place a new buy order above the high of this latest entry candle.

Here are all examples on a chart:

The red arrows drawn are actual entry candles you should have spotted according to the following rules:

You see green lines which is drawn if that candle has a low that is lower that the low of the previous bar.
The purple is the high of these bars with a green low (a candle that swept previous candle’s low). Your buy order should be on the purple line (high of entry candle)
If a new green line is drawn (a new candle low that is lower than the previous low), you would move your buy order which would be at the last purple line, to the new purple line (the new entry candle). This way we move our entry and stop with the market. Stop loss is at the latest green line (low of the entry candle)

As you can see: 10 entry candles illustrated with the red arrows for educational purposes:
Win. Win. Win. Loss. Loss. Win. Loss. Loss. Win. Win

We will also need our Fibonacci tool. Make sure you have set it to the following settings from the image:


This is our management fib, we will always use to determine our take profit target, and to know when to move our stop to break-even:
Place Fib Entry on previous swing high bullish candle close
Place SL on 21EMA (orange MA) of the entry candle
Place the Take Profit of the trade at 3R of the management Fib (the 2nd fib you placed on your chart as shown below)
Move SL to BE at 0.5R of the management Fib (the 2nd fib you placed on your chart as shown below)

Indicators used + template


Access panel: optional, i use it to indicate session times/open/closes of sessions.
Trade Plotter: optional, i use it to show the past and current trades (entries/exits)
Daily Open Line: optional, i use it to see the open of the day
ChartSync: optional, handy indicator if you have multiple timeframes of 1 instrument open; it changes all instruments when you change 1 window
MTF-HI-LOW: Optional; nice to see all highs and lows of higher timeframe candles

Price Cross MA Alert: Needed; this is the MA-touch indicator giving the dots (non repainting of course)
MA Crossover Signal: Needed: this gives the arrow on MA crossess (non repainting of course)
MACD OSMA 4ColorH_2LVar_mtf ncm: Needed; these are the MA-cross histograms, non repainting, which gives the market direction.

Optional; you can of course just use MA’s themselve and see if they cross; but in my experience it will clutter the chart too much, hence why i would advise to use the 3 histograms and MA touch and arrow indicators. You will thank me later

Risk management and calculation:


https://www.myfxbook.com/forex-calcu.../position-size

Pair: pair you want to trade
Account currency: currency in which your account is, mine is Euro
Account size: here you fill in your daily maximum loss (for FTMO this is 500 euros for a 10.000 euro account, so i fill in 500 here). If you have your own personal capital account, you fill in here what you are okay with to lose on one day as a maximum.

Risk ratio: you find this in the Excel document: for the first 10 trades of the day, we use 2% of your daily maximum loss.
After that, you move to the next group in the ladder, so u will risk 4% for the next 5 losing trades.
Then you move to 3 losing trades in a row of 6%. Then 2 losing trades of 10%, and then the final gunshot of 20% for one trade.

Getting down the whole ladder, which means 100% loss of your maxmimum daily loss, will be exceptional, but be mentally ready that is might be possible. Though, losing 21 trades (not calculating the trades closed for Break-evem which do not even count in the ladder) in a row, and still keep your account within acceptable limits, should give us enough mental and financial cushion to take the next trade(s).

If you are down in the ladder, and the next day starts; you can do two things: you can restart the ladder, accepting that yesterday was a losing day. Or, you can continue on the ladder where you were yesterday; that is up to your risk appetite. In both choices, you will stay withing your maximum daily loss which is positive.

News;

This is your own discretion. I have had trades opened just before news, that flew and made huge amounts of profit. And also have had news trades that demolished equity due to spread and going the wrong direction. Do your own research here on this subject. Be aware if your trade is already moved to Break-even or not. Be aware which type of news events will have more effect than others.
Also, if you are up for the day, and want a bit of risk, you can keep a trade open during news, but it is not advised.
Trade with caution, otherwise you will be caught with caution by the market is what i say.

Keeping trades open overnight;
Check your funding broker how they handle this. Some funding brokers use equity based drawdown, others use balance based drawdown. For FTMO i know that they use the equity of your account at midnight, which means if you are in a 1000 euro profit trade at midnight from the previous day, and your trade will got from 1000 to 499, you lose your challenge/account. So here as well; do your own research and decide for yourself what is smart. Make use of knowing how much drawdown you can still handle during the new day. Be aware of spreads that widen during midnight (spread hours), use your own due dilligence here.


Multi Timeframe Analysis:

I will post examples as we go. For now, you need to know that if you have a long trade going for example on the M30 chart, and price is on its way to the take profit level (3R of the management fib, but did not reach it yet), you can go to a lower timeframe (M1/M5) to look for more buy oppurtunities in the same direction. The best is to do this when the higher timeframe trade is at 0.5R on the management fib, which means SL should be moved to BE, so you have a non-risk trade going on there.
Keep in mind we only want to enter a lower timeframe trade, if the take profit of the new lower timeframe trade is within the reach of the higher timeframe take profit target (3R of the lower timeframe trade should be less than the take profit 3R level of the higher timeframe trade).
Also make sure to know where you are in the drawdown ladder to not over-risk anything (ie. if you are far down the drawdown ladder, it is not advised to start adding to the longer term timeframe trade, since these shorter timeframe trades are more risky/you could get stopped out more easily.

Trade examples:


3 Histograms are green: trend is up, we are only looking for long trades
We see a downward orange arrow (indicated by my beautiful red arrow drawn): this is an entry signal (one of the two entry signals we need)
The second entry signal is the orange 21EMA dot; this appears as well
This means that the price has retraced to our preferred level (orange level), while maintaining an overall uptrend (3 green historgrams)

Then: we want to see what our entry candle is, or becomes, to enter in the market.


A: Orange arrow has appeared, including the orange dot. So when candle A has closed, we can look for our entry candle. Did candle A’s low, sweep the previous candles low? YES IT DID> So what do we do? We place a buy order at the high of Candle A:

B: When candle B closed, we did not reach our buy order (high of candle A), so we are still not in the market. The histograms are still green + we have not seen a downward red arrow. So what do we do? We check if candle B can become our new entry candle. What do we ask ourselves? Did the low of candle B sweep the low of the previous candle (candle A’s low)? NO > What do we do? NOTHING; our buy order stays at the high of candle A, and Stop Loss at the low of candle A. Candle A stays our entry candle for now after candle B has closed.

C: Candle C is being formed. What happens is probably that during the formation of candle C, it has swept the low of candle B (previous candle). This means, that candle C, will be our new entry candle. And we knew that already while candle C did not close: the moment candle C swept candle B’s low, we had our new entry candle: candle C! But, since it did not close yet, we dit not have an entry level yet. But we knew it would be our entry candle, so what should we have done during candle C’s formation when it was sweeping candle B’s low? Delete our buy order of our old entry candle (candle A).
So now, when candle C was still forming and already swept candle B’s low: we delete our order, waiting for candle C to close.
When candle C closed, it became our new entry candle because it is the latest candle that swept the low of the previous candle. We now place a buy order at candle C’s high, with a SL at candle C’s low.

D: As you can see, our buy order finally got triggered during candle D’s formation: we are now in the market!

Management;



We use our management fib for this. Entry and SL are the purple horizontal lines.
We place our „Entry“ of the fib on the latest highest bullish candle close of the last swing high. You can see on the chart where that is.
We place our „SL“ of the fib, on the 21EMA of the entry candle.
This gives us a Take Profit level, which is the 3R level of the fib. This level has been reached fairly quickly and nicely.
We move the stop loss of our trade (lower purple horizontal line), to break-even (higher purple horizontal level), when price reached the 0.5R level of the fib.


As we can see; the aqua level was the take profit level, which has been reached. As you can see, i replaced the management fib, and put the fib on the entry price and stop loss level, to see how many R we made: we made more than 5R on this trade, without a single loss during the pullback due to our entry candle pick i explained before.

This shows what we want: we want a tighter stop, enter on a pullback, getting 3R on the bigger swing, but the stop loss is relatively tight, giving us 5-10R trades, with on average being stopped out a couple of times, before having an entry which will hit TP. With our risk management we use, you will come out profitably if traded the right way.

Short example:

3 MA Histograms are red: we are only looking for short trades as long as all histograms stay red. This is the case
We look for an orange up arrow. We get this at candle A. We are also looking then for an orange dot (21EMA touch): we get that as well on candle A’s close. So, we can look for our entry candle now.

Candle A: did the high of candle A sweep the high of the previous candle? YES. So, candle A is our entry candle: we place a sell order on the low of candle A, and our stop loss on the high of candle A.

While candle B is forming, we see that the high of candle B is sweeping the high of candle A. What do we do? While candle B is forming, we know candle B will become the new entry candle, so the moment that candle B is sweeping the high of candle A, we delete our candle A order that has not been triggered yet (low of candle A has not been hit yet). We then wait for candle B to close. When it closed, we place our sell order below canlde B’s close, and stop loss on the high of candle B.

When candle C is forming, the same happens as happened with candle A and B: we delete our candle B order, candle C becomes the new entry candle. New order is placed on candle C’s close; sell order at the low of candle C, and stop los at the high of candle C.
But what happens? At candle C’s close we see a red arrow appearing; this means a deeper pullback. That means that we need either a red dot that appears, or a candle close above the red 89EMA. Both happen; so we can still look for an entry candle, which is candle C still since all conditions are met.

Candle D: same story as before: candle C’s high is being swept, we are still not triggered, so we delete our candle C’s order, and wait for candle D to close. When it does, we place our order on candle D’s low, stop loss above candle D’s high. You get the point now i think.

Candle E: here we finally get triggered into our trade by sweeping the low of candle D (our sell order entry price). Super!
We then wait to either get to our take profit, or till we get stopped out. The stopout happens during the formation of candle F. Too bad, -1R for now.
So we got stopped out, but still all other things align (ma histogram, red arrow + candle close above red 89EMA). So we still look for an entry candle.
Candle E is not an entry candle at the close, because it’s high did not sweep the high of candle D. So for now, we do not have an entry candle.

Candle F has closed; it swept the high of the last candle (candle E), so F is our new entry candle. We place our stop at the high of candle F, and our sell order below the low of candle F.

During the next candle, we get triggered into our sell order and down we go!


So we are in our short trade.
We then get our management fib tool.
We put the „Entry“ of the fib on the latest lowest bearish candle close of the last swing low.
We put the „SL“ of our fib on the orange 21EMA at our entry candle.
We move our stop loss to break-even (purple lines), when price reaches the 0.5R level of the fib.
Take profit is at 3R


Take profit has been reached, for >10R profit (i removed the management fib and changed it to the entry canlde so you can see the total R of the trade)

Good luck on the thread Jube!

Thanks alot Machinelearn! You are always welcome on my thread as well

So for now; i have attached the Trade Explorer, starting for now with a 10k FTMO Demo account to show what we can do using the Nomad System.
You can also follow all trades here as well:
https://www.myfxbook.com/portfolio/n...-ftmo/11328760

Thread rules:
Please have respect. That means what it means. You know what it means, if not, please do not reply on this thread.
Thanks.

Furthermore; please only use the template i shared. You can always DM me if you have any extra indicators that would suit the Nomad system, but for now, please keep the thread clean.

EA's etc: please only DM me with EA ideas. I already have some ideas that could help making the system more automatic, but fully automatic will not work in my opinion: traders' discretion is always needed.

Thanks alot everyone who will participate! I will start placing trades maybe today or tomorrow, and take you along everything/every single step.

possible to share the indicator in zip
as well as template

Hi Xepo,

I think they are already uploaded in post #6 right? I see multiple downloads already as well.

If not, let me know

Goodmorning all!


First trade of the day (EURUSD, M5, 2% risk of max daily loss (500 euro), so 10 euro's risk, see risk calc excel document)

Histo's are red, orange arrow + orange dot (so 5 ema crossed 8 ema up + price touched the 21EMA)
Entry below the low of the last candle which high swept its previous candle (entry candle rule)

Fib placed: "Entry" of fib on the lowest bearish candle close of the latest swing low. "SL" of fib placed on the 21EMA of the entry candle.

Management: We will move SL to Break-Even when price reaches 0.5R (Aqua Line). Take profit is at 3R (not seen on the picture since it is a bit far away and zooming out is not nice now.)

Will make a new post if either SL is hit, or 0.5R is hit for moving to Break Even.

If TP is hit, it will be a total of +8.7R by the way.

Price touched the 0.5R level > Stop moved to Break-Even.
Free trade now.
Zoomed out a bit so you can see the Take Profit level as well now at 3R.

Will update if anything changes.

Went to the M1 chart to add to the M5 position which is a free trade now. Same 2% risk of 500 daily max loss (10 euros)
Entry is triggered
Move SL to BE if price hits the 0.5R aqua line.
Will update if anything changes.


Edit: got stopped out on the M1 trade.

M5 EURGBP Entry. 2% risk of 500 euros daily max loss. 0.5R on the chart marked, will update if 0.5R is hit or if stopped out.