Profitunity (Chaos) Trading System by Bill Williams

Thank you very much for your answer Numb3rs :-)) I was wondering if I missed something in the books.

Hello everybody.

I havent been here for a long time.... I have been testing my system... and what i can say is It Really Works.....
The main rule is: Dont affraid... and always look on volumes..... they will tell you when signal is correct and when isn't
So i enter in all positions by 3AO signal and quit when price triggers my target (about 0.7%).

Also about 50% of time we have a side moving.... and now i am trying to make a theory, in what side will it probably go. I am trying to predict. For this moment all i can say, if you see side moving, put stop orders for long and short higher than maximum fractal of this moving and lower that lowest fractal. It will give you about 1% on 5 minutes time frame.....
Also i found one interesting thing. Usually price will go in the same direction that it was before side moving... I identify direction by 2 max and 2 low fractals that was before side moving.... If first pair of hi/lo fractals is higher than hi/lo pair near side moving then probably price will go down and if lower then will go higher.... but actually it is still not proved

I think that statement needs to be qualified. There may be 50% sideways on intraday, but get up to the daily and higher charts and there rarely is sideways.

But knowing that means you can take the system to a whole new dimension (pun totally intended). Confluence of multiple time frames. Fractals and alligators of a different time frame can provide targets for entry/exit that might not be apparent in a single time a frame.

how is it going ? Can anybody post his results?

Jr97 i think its a good idea... maybe to look on 1h time frame or maybe 1d time frame.... and if its direction is to the north then this side way on 5m time frame also will be to the north.... maybe maybe

I am little new to this system. Could one of you please take a look and see if I am correct on the up coming entery points?

Many thanks

i wouldn't go long because the fractal is formed inside the alligator's mouth. only go long if the price and the fractal is above the alligator's mouth and only go short if the price and fractal is below the alligaor's mouth.

i am not sure, but i probably wouldn't go short either. while AC is indicating short, AO is not.

anyway, that's what i would or better yet wouldn't do. hope it helps.

btw, i use bill william's theory together with another system, so i look at 2 systems for a trade

Hi traders,

Vacation is over and we could continue digging our systems.:

Wish success to all of you.

Numb3RS you are absolutely right! and also look on AO.... it is slightly going up... this mean side moving. Also another point is that before side moving price went down... so probably in future it will go down... my oppinion.... please write us what happens next

Thanks BBPI and Protei. My feeling is it will go short also, but then only want what the market wants . I will post on what happens next np.

Hi all,

This is my second day on this forum, and although I have been able to digest (albeit with plenty of burps!) what all has been written here, wouldn't it be worthwhile if somebody could summarize this strategy?
Isto, you've been the 'father' of this forum, would be great if you could jot down the details of your 'baby', to help beginners like me find their way.
Things like stop-loss and take profit levels, entry-exit signals, etc. could be summarized...of course strictly without any liablity on the person writing these out.
Cheers!
Dave

I'm also new to this system, I'm currently reading 'Trading Chaos', does there seem to be a time frame for trading this system that is most effective? Have you more experienced traders found better luck with it on a daily chart or does it matter?

Another quest I have is Divergent Bars, if you are in a trade and an opposite divergent bar forms, is this a signal to close your position?

Concerning time frames i could say that there is no best time frame.... you will find your own time frame in future.... i tried 15 minutes 1 hour, and now i am using 5 minutes.... I think this is my time frame.... i like it because of its rapid movement.... i can make 2 trades per day.... so i feel like i am on the work...

Concerning trading system. I think Wiiliam's system cannot be used as it is... but with some modifications it is really nice. For this 4 days i made about 3%... only yeasterday i lose 1% because of my stupidity.... there was side moving... and so on side moving i went many times on short and long position without any signals.... maybe becos of my nerves.... i dont know.... if i had been trading using signals i would have done so many mistakes.... and had only about -0.5%... anyway in the end i concentrated and went on long position for next day.

Look on this chart... and also look on volumes...

One question to Chaos trader ...

I read the book and it seems that Bill proposed Elliot wave as the method. But it seems to me the charts in this thread has no Elliot wave count. Has the method evolved away from EW ?

I think there is noneed anymore to count waves... because it is really impossible to count them. I tried it a lot... but failed.... My opinion is to trade chart as it is. If you try to predict chart, you will fail.

hi everyone, i'm just newbie. just want to give some comment.
i've just read trading chaos, and this thread is very awesome. thanx isto.

i learn a lot from this thread.

great, I hope to have many profitable trades

Ajone92:
I have traded all or part of the Profitunity way since 1999--futures initially, Forex since early 2004. In my experience, the Profitunity way can be profitable in all time frames and in all markets just as Williams claims for it; but it has been the most successful for me when I took my action reads off of the daily time frame charts.

As for divergent price bars, I have not found any reasonablly consistent signficance to a divergent bar that did not appear after a heathy Alligator chase.

Protei:
I too often trade a system that is not textbook Profitunity, but I would argue that it needs no help to be a profitable system. I emblish it because I believe my tweaks increases the probability of a trade being profitable.

Williams says in all three of his books that the Elliott Wave is the underlying structure of a market, and that fractals are the underlying structure of Elliott Waves. Williams says in New Trading Dimensions (p.62), "If the current price is outside the Alligator's mouth, we are in an impulsive wave of one degree or another. If the price is meandering around the Balance lines, we are in a reactive wave of one degree or another." We know that ideally, we want to enter our trade early in an impulsive EW, and that we do not want to enter our trade while it is in a reactive EW. Williams says in Trading Chaos 2nd Edition (p.142), " A Fractal is always a change in behavior caused by new incoming information (chaos)." Putting all this together means we can indeed trade the EW without counting waves. For my own trading, I use these realities of market behavior to decide whether or not I want to take the 2nd Wise Man signal (Super AO signal)... I will even occassionally buy off a fractal low when it is in an impulsive EW or sell off a fractal high that is in an impulsive EW.

Profitunity is certainly not the only system that can be traded profitably; in fact, it may not even be the best system one might choose, but it is a darn good one built on a uniquely solid technical foundation; and it has been a good one for me.

...\larry.bye

Dlftrader... the main i dont like in Williams system is that we should add our position on each signal.... usually system allows us to enter when moving is only forming.... and if we enter with all money i think it will be more profitable. thats my opinion

Protei If you enter with all money at the start, the trades that fail will eat you up. I think you might have gotten confused on the way BW adds to positions. It should be ALWAYS the first position is like just dipping your toe in the pool to test the water. Start with 1 contract or lot. You can use a set up like this 1,5,4,3,2... or 1,2,4,3... However you do it, it should always start with 1 then load up and then scale down. The other option is to just add 1 for every entry signal that comes up.(since I am new to this system the add only 1 is the way I do it for now).
Dlftrader, would you be kind enough to stick around on this thread and make comments? I think your experience would be most helpful.