FXTradepro: Strategy using a “Semi-Martingale” Position Sizing

I like this type of trading and have studied this and "grid" trading much in the past. My theory is the same: very difficult to "predict" markets, so you should trade in a "reactionary" approach.

Have you looked at averaging down before actually placing a reverse trade? I am very interested in averaging down because this too takes advantage of the volatility. It also has the advantage of keeping the original trade open and having that trade work for you without starting over on the spread.

Its just a thought and I may be out in left field, but what about averaging down a few trades before actually placing the reverse trade? Especially if your original trade is with a heavily trending market.

If you look at the EUR the last 6 years, the heavy traders were all buying on dips and making a lot of money doing it. Not a lot of brain surgery. The key of course is trading small to outlast runs against you.

Just some thoughts, but I like this style of trading.

athalon7,

Thank you for your thoughts. Averaging down (or dollar cost averaging as it is also known) is a technique that I have used in the past although NOT in relation to the FXTradepro Forex Trading Strategy that I am discussing in this Thread. While that idea can be useful, I would prefer to keep the discussion (at least at this point in the Thread), focused on the actual Strategy that I am Trading.

By the way, my Method does very well in Trending Markets, it is the VERY TIGHT Ranges that we try to avoid.

Regards,

Dan

Please review POST #1 before proceeding. It is important that you understand the Basics of the Strategy as illustrated in Post #1.

OK, Folks......Here comes some of the tricky stuff.....I hope that I've presented things clearly!


LEVERAGE and MARGIN - The FXTradepro Forex Trading Strategy:

An understanding of Leverage and Margin is essential when trading the FXTradepro Forex Trading Strategy. Since an integral feature of the Strategy is the increasing of Lot Sizes (semi-martingale), calculations are required to make certain that enough Margin is available in your Trading Account to complete an entire Sequence Of Trades. It is important to understand that although we are Trading only 1 position at a time using the Strategy, we need to view the entire Sequence Of Trades as a single position for Margin purposes. Although we will not often need to cover an entire Sequence of up to 24 trades, we must be prepared for that possibility in order to avoid a Margin Call.

The size of a Trading Account needed to trade the Strategy is dependent upon several issues:

1. The Broker's Leverage and Margin Policy - Every Broker has different rules and Leverage options which are selected by the Individual Trader. The most common are 100:1, 200:1 and sometimes even 400:1. For our purposes in trading the FXTradepro Forex Trading Strategy it is best to take advantage of the HIGHEST available Leverage offered by the Broker even though we will not often need to use it. The HIGHER the available Leverage then the SMALLER your Account Balance will need to be.

1. Type of Account - Mini Accounts, Standard Accounts and Universal Accounts (Mini & Standard Lot sizes in the same Account). - Most Mini Accounts are available at up to 200:1 and sometimes 400:1 Leverage, and most Standard Accounts are offered at 100:1 Leverage. Some Broker's do offer Standard or Universal Accounts at 200:1 Leverage and it is possible to find situations where 400:1 is obtainable.

1. Does the Broker permit odd Lot Sizes? - For example, can you trade Mini Lots in a Standard Account or Micro Lots in a Mini Account? For our purposes this flexible feature is VERY IMPORTANT.

1. Target and Stop Loss Settings - The larger the SL setting used, then the larger the TP must be. This is basic to the Strategy. Subsequently, the larger the settings, then the larger your Account will need to be. I recommend using the default settings in the FXTradepro Manager Expert Advisor which is set with a SL of 10 pips and a TP of 40 pips unless you are Trading a Currency Pair with a Pip Spread of greater than 5.

1. Sequence Of Trades - The number of entries that we set the FXTradepro Manager EA to trade before taking a loss on the entire Sequence is a major consideration in regard to Leverage and Margin issues. Using a 24 Entry Sequence is theoretically safer than using a 10 or 12 Entry Sequence as the likelihood of reaching our target is certainly greater, however, the more entries that we require in our Sequence then the larger an Account must be.

1. Lot Sizes used in the Sequence - The Lot Size of the Initial Entry in a Sequence along with TP and SL settings, the number of entries in the Sequence and our Profit goals will determine Lot Sizes throughout the entire Sequence Of Trades. The larger the Initial Entry and thus the Profit goal, then the larger an Account must be. I recommend using the default settings in the EA starting the Sequence with 0.1 Standard Lots (which is equivalent to 1 Mini Lot of 10,000 Units) for a Standard or Universal Account or .01 Lots (which is equivalent to 1 MICRO Lot of 1,000 Units) for a Mini Account.

While this may seem a bit complicated and confusing to you at this point, I will spell everything out so that you will have a clear understanding of these concepts. I will break this information down by the type of MT4 Accounts that are recommended to trade the Strategy and illustrate, through the use of the FXTradepro Manager Calculator, issues such as Account Size, SL and TP Settings, as well as settings for the number of entries in a Sequence Of Trades. The examples provided are with the settings I trade with and I suggest that you use the information in the TABLES below to aid you when setting up your FXTradepro Manager EA.


Understanding the FXTradepro Manager Calculator:

TABLE 1.0 below is a screenshot of the Calculator that I developed to determine the various settings for use in trading the FXTradepro Forex Trading Strategy using the FXTradepro Manager EA, which I will provide in a future Posting.

http://aycu26.webshots.com/image/220...1134763_rs.jpg
TABLE 1.0 - FXTradepro Manager Calculator - STANDARD or UNIVERSAL Account with Mini Lots Permitted - 200:1 Leverage


TABLE 1.0 above details calculations for a Standard or Universal Account with 200:1 Leverage with a Broker that permits Mini Lots. These calculations provide us with the settings for the External Parameters in the FXTradepro Manager EA, as well as calculations of Profits and Losses in a Sequence Of Trades, minimum Account size and other Margin and Leverage considerations. Below I will illustrate the important details and how you apply them to your Trading.

Required Margin Field:

http://aycu18.webshots.com/image/242...5828397_rs.jpg

Required Margin is determined by the Leverage and Margin requirements of your Broker. On a Standard or Universal Account, if you have 100:1 Leverage then you would need $1000. in your Account to open each 1.0 Lot position of 100,000 Units. 200:1 would require $500. per position and 400:1 would require $250. The example in TABLE 1.0 is for 200:1 Leverage, thus the figure indicated in the Required Margin Field is $500. You will find a reference of typical MT4 Broker Margin Requirements listed in the Account Size Information field (see below).

http://aycu06.webshots.com/image/242...4561063_rs.jpg

TP and SL Settings:

http://aycu35.webshots.com/image/243...6290780_rs.jpg


StopLoss = 10 Pips Take Profit = 40 Pips

We set these Values in the Expert Advisor.
Note that these are the default settings in the EA and the settings I use.

http://aycu28.webshots.com/image/245...2467293_rs.jpg
NOTE: These TP and SL settings are for Trades on Currency Pairs with a Pip Spread of 5
or LESS. If you wish to trade Pairs with a LARGER Pip Spread, please Contact me and I
can calculate the settings that you will need.


CONTINUED IN THE NEXT POST..........................

Sequence Of Trades = 24 Entries with Lot Sizing as follows:

http://aycu36.webshots.com/image/244...4968378_rs.jpg

We set these Values in the Expert Advisor.
Note that these are the default settings in the EA and the settings I use.

http://aycu07.webshots.com/image/230...8105582_rs.jpg



Using the FXTradepro Manager Calculator to determine Profits, DrawDown, Losses and Account Size:

Using the example of a Standard or Universal Account with 200:1 Leverage with a Broker that permits Mini Lots, I will illustrate
some important considerations in TABLE 1.1 below.

http://aycu08.webshots.com/image/239...4895033_rs.jpg
TABLE 1.1 - STANDARD or UNIVERSAL Account with Mini Lots Permitted - 200:1 Leverage


In reviewing the calculations in TABLE 1.1 we can determine the following:

Profit Column - Illustrates how much Profit will be realized at each Entry in a Sequence. For example - If our TP is hit at the 15th Entry in a Sequence (#1) the Profit = $770. over and above the AGGREGATE losses on the first 14 trades in the Sequence.

DrawDown Column - Illustrates the AGGREGATE Losses at each Entry in a Sequence. For example - If our SL is hit 14 times and then our TP is hit on the 15th Entry (#1), our aggregate losses at the 14th Entry would be -$2,430. When our TP is then hit on the 15th Entry the Profit would over take our aggregate losses by $770.

NOTE: The above Profit and DrawDown figures are for USD Denominated Pairs such as EURUSD, GBPUSD, AUDUSD, NZDUSD.
In a Standard Account note that 1.0 Lots = 100,000 Units of Currency = $10. per Pip in Value on these USD Denominated Pairs,
however, Pairs such as USDJPY, USDCHF, USDCAD have a LOWER Dollar Value per Pip.

Account Size Information - With an Account Balance of $7,230. (#1) enough Margin is available to trade a 15 Entry Sequence Of Trades. With an Account Balance of $12,050. (#3) enough Margin is available to trade a 17 Entry Sequence Of Trades. As you can see from TABLE 1.1 with a larger Account Balance more Margin is available for a greater number of entries in a Sequence Of Trades. Generally speaking, the more "room" we have in order to trade with a higher number of entries in a Sequence then the less chance there is that the entire Sequence will close at a loss. Typically, my trades close before the 12th Entry, however, there have been rare situations particularly during quieter Market periods where a Sequence has gone to more than 12 Entries. For this reason I prefer to have the ability to sustain a Sequence as far as my Account Balance will take me and therefore Trade with a fairly large Account. To illustrate this point further, if you have an Account Balance of $31,770. (#5) you would be able to sustain a Sequence Of Trades to the 21st Entry. I have yet to see a Trade close at a loss at the 21st Entry, but the possibility does exist. Understand that your overall risk is directly related to the size of your Account and the number of entries that you Trade in a Sequence.

Now that you know how to read and interprete the FXTradepro Manager Calculator, I will provide additional calculations for Standard and Universal Accounts with Margin availability at 100:1 and 400:1 in TABLES 1.2 and 1.3 that follow. In TABLES 1.4 and 1.5 in the next Post, I will provide calculations for Mini Accounts.


STANDARD Account with Mini Lots Permitted - also known as a UNIVERSAL Account:
(see TABLES 1.0 and 1.1 above and TABLES 1.2 and 1.3 below)

A Broker's Platform that permits trading in the following Lot Size increments:

1.0 Lots = 100,000 Units = $10. per Pip
0.1 Lots = 10,000 Units = $1. per Pip

http://aycu21.webshots.com/image/226...7606328_rs.jpg
TABLE 1.2 - STANDARD or UNIVERSAL Account with Mini Lots Permitted - 100:1 Leverage



http://aycu09.webshots.com/image/245...5863343_rs.jpg
TABLE 1.3 - STANDARD or UNIVERSAL Account with Mini Lots Permitted - 400:1 Leverage



CONTINUED IN THE NEXT POST.................................

MINI Account with Micro Lots Permitted:
(see TABLES 1.4 and 1.5 below)

A Broker's Platform that permits trading in the following Lot Size increments:

0.1 Lots = 10,000 Units = $1. per Pip
.01 Lots = 1,000 Units = $0.10 per Pip
1.0 Lots = 100,000 Units = $10. per Pip


http://aycu11.webshots.com/image/240...5553562_rs.jpg
TABLE 1.4 - MINI Account with Micro Lots Permitted - 200:1 Leverage



http://aycu04.webshots.com/image/218...9080170_rs.jpg
TABLE 1.5 - MINI Account with Micro Lots Permitted - 400:1 Leverage


A Final Thought- When trading the FXTradepro Forex Trading Strategy it is favorable for us to trade with a Broker that offers High Leverage along with flexibility in permitted Lot Sizing. Broker's that offer Universal Accounts or Standard Accounts with Mini Lot capabilities and those offering Mini Accounts with Micro Lot capabilities are our Broker's of choice.

Please post your questions or contact me if you require clarification of anything in this Post.


Dan


EDIT: FYI - I Trade the Strategy LIVE at a popular MT4 Broker on a Standard Account with 400:1 Leverage. I was able to obtain this level of Leverage simply by requesting it from the Broker and stating that I understood the risks involved.

Thanks Dan

Really very good presentation.

From all the tables I understand that a safe account size to launch a 0.1 lot initial entry would be around $100,000 in order to withstand the full sequence of 24.

Hi Fxtraderpro,

Just finished reading the thread and it seems very interesting. Congratulations to you though, on taking the time to actually prepare the posts with the tables and posting them. I am sure as a trader, you spend enough time in front of the computer, and the last thing you want to do is spend more time after trading!!

I just hope this does not go down the line of presenting a lot of information, but when it comes to the crunch factor, it suddenly becomes for sale.

After thinking about it, it does seem to be a very well thought out strategy. But I think there is a lot more that remains to be "disclosed". Especially the specifics of entry. The way I read it is,you are basically waiting for the price to break out of a 10pip "range". Time frame once you entered would be basically irrelevant, but getting the entry time frame would be critical.

Judging with your tables, this is would not be a strategy that actually makes you a decent amount of % return per capital at risk!! Would you care to share what sort of percentage returns based on the leverage you have recommended, are you acheiving.

I look forward to reading more of your posts and giving your ea a try.

Regards,
K.

howard,

As I mentioned at the end of my last Post, I trade this LIVE at a popular MT4 Broker where I was able to obtain 400:1 Leverage. I do NOT generally need 400:1, however, this does permit me to Trade the Strategy "safely" with an account size of just under $50,000 (see TABLE 1.3 in Post #24). You are correct that a $100,000 account would be necessary at 100:1 to be able to handle a complete Sequence of 24 Entries.

Understand, that it is possible to Trade this with a considerably smaller account if one would determine that a 20 Entry Sequence (or even less) was suitable to the individual Trader. Personally, I prefer to have the ability to last up to 24, although I have never needed to last that long.

Dan

kermut,

Thank you for your comments.

There actually is not that much more to disclose in the way I trade this, except for the EA that I use to manage my Trades which I will be Posting shortly. Other than the Money Management concepts, this is not a complicated Strategy. Once the MM and the associated risk is understood and accepted by a Trader, trading the Method is a matter of finding an Initial Entry that attempts to avoids a tight 10 Pip range before moving either 40 Pips in our selected direction or 50 Pips in the opposite direction. The nice thing about the Strategy is that in allows me to be "wrong" about my directional choice. Also, how many times have you had a trade start to go against you (stopping you out) and then move your way OR start to move your way and then completely reverse? This Method allows a Trader to profit either way.

Regarding the specifics for entry, there are many ways to play this. You need to understand that this is not so much a Strategy that says do A,B & C, as it is a METHOD of executing a Trading Plan. What I look for in terms of an Entry Signal, is typically an area of Support or Resistance with the idea that a either a Breakout or a Retracement will occur at one of these areas. I consider the general volatility of the Pair I am looking at and also the Average Daily Range for past few days and weeks. I also consider whether there are any economic releases during the day that could make the Pair move. Remember that I am looking for a 40 to 50 Pip move to occur BEFORE my 10 Pip Stop is hit more than up to 24 times and I try and focus on entering when the PROBABILITY that my target will be hit is higher than my stop being hit that often.

Having stated the above, I am sure that there are many Trend following entry signals that a Trader could use effectively to trade this Method. The S and R concept is just what I use and have found effective. For your reference I look at several timeframes from 5 Minute to 4 Hour, however, I generally draw my S & R areas on a 30 Minute Chart.

Regarding returns....I am of the OPINION that many who frequent these boards are under the impression that a Forex Trader can "Trade for a Living" starting with a $5K - $10K Account. Now, perhaps there are some that are doing this or have done that, but I am not one of those "lucky few". What I can say is that a 100%+ annual return is achievable in my experience.

Dan

Hello all......I am attaching the EA to this Post along with some information on how to set this up in MT4 for those who are not that familiar with the Platform. Please note that the EA Posted is something that I paid a professional programmer to code for me and that I wish to retain control over for the time being. For this reason, I have decided not to share the code, so please do not ask me to.....Thanks, Dan



The FXTradepro Manager Expert Advisor:

I use the FXTradepro Forex Trading Strategy every day and would find it almost impossible to do so without using my FXTradepro Manager Expert Advisor. I do not personally believe in using fully automated Trading Systems, however, using a "robot" to MANAGE trades that are made using my own signals and discretion for entry has made a big difference in my Trading results.

The FXTradepro Forex Trading Strategy can be traded manually, however, you would need to be at the Trade Terminal constantly to manage and monitor your positions. Therefore, I highly recommend using the Expert Advisor (EA) which is included in this Post.

The MetaTrader 4 Platform (MT4), which is available FREE from many Forex Brokers and MarketMakers, permits trading with the Expert Advisor.

Expert Advisor: Please download from the bottom of this Post

FXTradepro Manager 24 - SEPT 2007

This EA will EXPIRE and no longer function on October 5, 2007 at 23:59 Broker Server Time.
A version for use in the month of October 2007 will be available on this Forum beginning October 1, 2007.


How to Add the EA to your MT4 Platform:

This next step assumes that you have the MT4 Platform installed on your Computer. If you do not, then please sign up for a DEMO with a Broker that offers the Platform.

After you have downloaded the EA from the bottom of this Post, you need to COPY the Expert into the "EXPERTS" folder in your MT4 Platform. Here is a quick and easy way to accomplish that.[*] Right click on the SHORTCUT Icon of your Brokers MT4 Platform[*] Select PROPERTIES [*] Click the FIND TARGET (or Open File Location) Button on the Shortcut TAB[*] Locate the EXPERTS Folder in the Window and open it[*] Drag the FXTradepro Manager EA into the EXPERTS Folder[*] Close all Windows[*] Start up your MT4 Platform

You should now find the EA in the MetaTrader NAVIGATOR window on the left-hand side of the Trading Platform listed under Expert Advisors.
If you need further assistance with setting any of this up, please post your questions or email me and I will help you through the process.


EA Settings and Loading the EA to Trade:

In order to set-up the Expert Advisor to Trade for the first time you will need to do the following. Double-Click on the EA in the NAVIGATOR window and a Dialog Box will open showing the COMMON Tab in the window. Please review the Illustration below and make certain that your settings match these.


http://aycu29.webshots.com/image/217...3610403_rs.jpg

When you are finished matching the settings in the COMMON Tab, click OK


In order to set up the EA to begin Trading there are several External Variable settings that we can modify to meet specific needs. I will outline each variable in this Post and provide the settings that I generally use. To view these setting double-click on the EA in the Navigator window which opens up the EA Dialog Box, select the INPUTS Tab and you will see the following fields which we will modify as needed.


http://aycu06.webshots.com/image/229...5598451_rs.jpg

http://aycu06.webshots.com/image/254...5718429_rs.jpg

http://aycu21.webshots.com/image/247...9496840_rs.jpg

http://aycu03.webshots.com/image/240...7711056_rs.jpg



Once you have set the External Variables you can then set the EA on your chart to begin a Trade by clicking "ok".

Again, if you need further assistance with setting any of this up, please post your questions or email me and I will help you through the process.


Charts and Indicators:

In the next post I will explain how to set up your charts in MT4 with the various Indicators I use.

fxtradepro,

thanks for posting the system for FREE..........for a moment, i thought you were trying to sell the EA ............

i remember seeing someone posting a method very similar this strategy at another forum - the guy says you will eventually land on the right side of the trend (at least for the short term) so maybe can manually adjust the TP ?

if i'm not wrong, the results of this system will favour a trending market rather than a ranging one ?

Does Sept 24 mean this EA is a trial and has a expiry date?

The indicators I am Posting were NOT created by me and many are available publicly. In some cases I have modified them for my own use and I have changed all the names to include “FXTradepro” for the sake of continuity with the Strategy.



MT4 Charts and Indicators:

I use the following Chart set-up and Indicators on my MT4 Platform. The Indicators I use are available for download at the bottom of this Post. Additionally, I have included a TEMPLATE for you to use so that once you have added the Indicators to your MT4 Platform you will have the same set-up that I have on my Charts. I will explain how to set this all up in this Post.

You do not need to use my set-up to Trade with the FXTradepro Manager EA. Remember, the EA is not fully automated in that we select the Initial Entry to begin the Sequence Of Trades. You may set your Charting up however you like. I include the Indicators and Template here for those who wish to look at the same Charts as I do.

Chart Set-Up: I prefer Candlestick Charts, however, this is a personal preference

Time Frame: I use Multiple Time Frames from 5 minute to Daily, however, my main chart is a 30 minute Time Frame.

Indicators: Please download from the bottom of this Post.

These are the Indicators I have on my Charts. I DO NOT really use them for entry signals but rather to give me a feel for what is going on in the Market (along with Price, which is the KING of all Indicators). As I indicated above previously, you do not need these Indicators to trade the Strategy and you can use any Indicators that you like or prefer.

1. FXTradepro ADR (Average Daily Range) Indicator
2. FXTradepro SuperTrend w/Alert
3. FXTradepro SuperTrend Histogram
4. FXTradepro T or R (Trend or Range) Indicator
5. FXTradepro Candle Closing Time
6. FXTradepro Clock
7. FXTradepro Chart Template

How to Add the Indicators to your MT4 Platform:
After you have downloaded the Indicators and Chart Template, you need to put them in the proper location in your MT4 Platform. The Indicators go in the INDICATORS Folder which is located inside the EXPERTS Folder and the Template goes in the TEMPLATES Folder, which is in the same area as the EXPERTS Folder. Here is a quick and easy way to accomplish this.

For the Indicators:

1. Right click on the SHORTCUT Icon of your Brokers MT4 Platform
2. Select PROPERTIES
3. Click the FIND TARGET (or Open File Location)Button on the Shortcut TAB
4. Locate the EXPERTS Folder in the window and open it
5. Locate the INDICATORS Folder in the window and open it
6. Drag all the Indicators into the INDICATORS Folder (not the Template)

For the Template:

1. Right click on the SHORTCUT Icon of your Brokers MT4 Platform
2. Select PROPERTIES
3. Click the FIND TARGET (or Open File Location) Button on the Shortcut TAB
4. Locate the TEMPLATES Folder in the window and open it
5. Drag the FXTradepro Chart Template into the TEMPLATES Folder
6. Close all Windows & Start up your MT4 Platform

Setting Up Your Charts with the Indicators & Template:

Now that you have the Indicators and Template loaded into the MT4 Platform, this is what you do to get everything set on a Chart.

1. Open a new Chart from the FILE Menu on the Platform
2. Once the Chart is open, right click on the Chart. A pull-down menu will appear. Select TEMPLATE. Another pull-down sub-menu will appear. Select FXTradepro Chart Template.

Now you should have the same Chart showing as I do. You can do this same procedure for any Currency Pair that you wish to follow. Below, I have Posted a picture of the Chart set-up along with the Indicators and Template.


http://aycu37.webshots.com/image/234...4960362_rs.jpg


If you need further assistance with setting any of this up, please post your questions or email me and I will help you through the process.


Dan

Scott,

24 is part of the EA name. FXTradepro Manager 24 (for 24 Entry Levels). As noted in the EA and Indicators Post the posted version will expire on October 5th, at which time I will post another working version. I hope this does not pose any problem.

Dan

findcount,

You can adjust the TP manually if you desire. I do not do this however.

Regarding Trending or Ranging Markets....Trending is excellent and Ranging can be ok, assuming that the range is greater than 50 Pips for my set-up.

I hope this helps....

Dan

Ok, I am going to cut to the chase here. I am a moderator as I am sure you know... This is a very nice presentation and I thank you for it... Very professional. However, Self Promotion is not allowed here at FF without prior approval from the Admin, so if this is not a promotion, that is just great and you are to be commended.. If it is a way of building a following and then charging for the services, that would be considered self promotion and would cause the thread to be deleted and the member to be banned.

I am just laying my cards out, so we understand each other I mean nothing other than that.

It would just be a shame to lead people down a path and then discontinue that.

So, do I have your assurance that this is not the case? If so, this could develop into a very interesting thread, if not, in all fairness, I do not want to waste your valuable time...

Thanks for your understanding in this,

I'm sure your system of determining entry is why you've been successful with this system, rather than the money management aspect of it.

The money management strategy sounds a whole like like the 'foolproof' system I created for playing Roulette at the Casino a few years back! I won for ages using this system, but unfortunately then blew up my entire accumulated winnings and the money I had initially started with on one run of 14 reds in a row.

Standard probability theory states that the odds of 14 reds coming up in a row is something in the vicinity of 87178291200 to 1, but it still happened.

In the end, each entry in my case was a 50/50 event, and that's what I lost track of. In the case of your trading system, each seperate event is way further stacked in favour of hitting your stop loss unless your entries are really good and have really good reasons for them.

Please don't take this as my trying to warn the original poster away from this system, because if his system for determining entries is good, then he will make money. I'm warning people who want to fully automate this or just treat it like a coin toss that there is every chance that your entire account will be blown up at some point when the laws of probability just decide it's time to bite you on the ass. Look back to my Roulette example to see what I'm talking about there. It's the same thing.

As is the case with any system, it can only be successful because of discretion and all of the intangibles that help traders decide what a good entry is and what a bad entry is. If the market is really choppy, there is EVERY chance you will lose and lose a lot unless you are careful with that initial entry.

Scott,

I understand your position. I was, for a time, considering a paid service but have decided against it as I prefer to spend my time trading. That decision has prompted me to Post the Strategy here at Forex Factory. If enough people show an interest, I will continue. Understand, however, that there are those who would take this information and try to Sell it as there own, so as a precaution I will not Post my EA Code or any open version of the EA, as I do wish to retain some control over it.

If this poses any problems, please let me know and we can close the thread now.

Regards,

Dan

Thank you so much for being up front with me...

This will be fine... and have a great weekend

Regards,

Very good point nathbear......

I agree that this should NOT be fully automated and that a discretionary entry is the key to success. The point being that the discretionary entry does not always need to be 100% correct to be successful. What I try and do is stay away from entering at a point where the Market seems to be ranging tightly and where that condition is likely to continue for awhile.

I am careful about when and how I start a Sequence Of Trades and do not Trade simply because I like or need the action. I Trade when I believe that an opportunity exists for my Strategy to profit.

Thanks,

Dan