ATP (Advanced Trading Philosophy): 3+1=WIN

Hello everybody,

I set out on this journey determined to find a winning trading strategy that work nearly all the time offering very little risk with high rewards.

I believe this journey has finally come to an end.

I am going to give to you what I call my 3+1=Win Strategy.

This method is condusive to trading D1 and H4 charts, although things are slightly different for each TF.

You will find the with the D1 charts you will enter 5-10 trades per year per pair. Not many trades, but as you will be able to back test, they are all low risk trades which means that you can easily decide to risk more than you normally would be willing to risk.

When trading this method on the H4 charts, you will have set targets of S/L, T/S and T/P. This too is a low risk high reward trade. If you have the ability to check your charts every 4 hours, you could possibly have a modified strategy where you would exit the market differently.

This will most likely be my last thread that I start on Forex Factory as I believe that no more reasearch needs to be done. Possibly only minor tweaks to make this system the best ever.

I have eliminated trading EUR/AUD for both the H4 and D1 methods. After I do some more backtests, there may be one or two more pairs that we should not trade, and so I will post them on this first post.

Current Pairs to Trade:

1. EU
2. AU
3. GU
4. UCAD
5. UCHF
6. UJ
7. GJ
8. GCHF
9. EG
10. ECAD
11. ECHF
12. NU
13. EJ

I will modify any pairs on this first thread.

That is all that I have for this first post. We are going out of town in a few hours and so I will get up as much as I can before we go and finish the rest when I return Sunday.

For now I will start with the constants for both the H4 and D1, and then go into the specifics.

Happy Pippin'

3 + 1 = WIN comes from a formula derived by having 3 agreeing indicators on the chart that you are trading in agreement with 1 indicator on a TF that is one higher.

So, for trading D1, when all three indicatrs are in agreement, you verify that they are also in agreement with W1. If not, then no trade.

And for trading H4, when all three indicatrs are in agreement, you verify that they are also in agreement with D1. If not, then no trade.

Are indicators are as follows:

1. Bill Williams Accellerator Oscillator (AC) which can be found in your MT4 charting software.
   1. Setings = Default

2. Solar Winds Indicator (SWI) -
   Attached File(s)

   SolarWind-ACS3.mq4   3 KB | 1,232 downloads
   1. Change the following settings
      1. Color1 = Lime
      2. Option = 2
      3. Smooth = .1

3. MACD with Smoothing Line which can be found in your MT4 charting software
   1. Settings should be as follows
      1. Fast EMA = 12
      2. Slow EMA = 26
      3. MACD SMA = 6
      4. Add 0 Level

For now, unless we inform you otherwise later in the thread, these settings should be used when trading both D1 and H4.

It is also fair to say that this strategy may work on other lower TF's, but as I have no way that I can trade lower TF's, I have not tested them as such.

Here I will show you how to read the indicators. It is possibly the simplest read available from any system I have ever seen.

This is just the basics and you should not enter a trade based on any one of these rules on there own.

Reading the AC:

For the most part, if the AC is green we will enter Long and if the AC is Red we will enter Short. However, while in a Long Trade the AC will go to Red many times and while in a Short Trade the AC will go to Green many times.

Reading the SWI:

The SWI really reads no different then the AC. If the SWI is green we will enter Long and if the SWI is Red we will enter short. However, while in a Long Trade the SWI may go to Red and while in a short trade the SWI may go to green. These color changes while in a trade will not be nearly as prevelant as to the color changes that will happen with the AC.

Reading the MACD:

This will be the hardest of the directional reads, and that is not saying much as it is still very easy. There are two reads for each Long Trade and each Short Trade.

Reading MACD Long Trades:

1. 1. If the MACD is below the 0 Level then a Long Trade will only be signalled if the none of the previous MACD Bar is sticking below the MACD Smoothing Line. Touching the MACD Smoothing Line is Okay.
   2. If the MACD is above the 0 level then a Long Trade will only be signalled if the close of the last MACD Bar is sticking up above the MACD Smoothing Line. Even if it is a very small amount. Touching the MACD Smoohting Line is Not okay. It must be visibly sticking up past the MACD Smoothing Line.

Reading MACD Short Trades:

1. 1. If the MACD is above the 0 Level then a Short Trade will only be signalled if none of the previous MACD Bar is sticking above the MACD Smoothing Line. Touching the MACD Smoothing Line is Okay.
   2. If the MACD is below the 0 Level then a Short Trade will only be signalled if the close of the last MACD Bar is sticking down below the MACD Smoothing Line. Touching the MACD Smoothing Line is Not okay. It Must be visibly sticking below the MACD Smoothing Line.

That is all that you have to know how to do to trade 3 + 1 = WIN. Well...I guess you also need to know how to place orders and close them in a proft.

please post charts when you have a chance, thx

damonl,

I assuming that we are moving away from the other threads on ATP and are on this one to stay? That's fine with me, just trying to keep up.

I give you an A for your effort. Thanks for sharing.

HJJ

I have time for one more post and then I must go. Please keep in mind that there are a few sub-rules that I will still need to go over with you as well as exiting the market and taking profit in the market. However, this will give you something to study unitl I have time to get the rest posted.

When to Place a Long Trade:

1. 1. On D1, wait until the AC, SWI and the MACD all give you a long signal at the close of any bar.
   2. When you get this signal, switch over to W1 and make sure that MACD is also giving you a long signal on this chart.
      1. If it is, place your pending order 1 pip + spread above the high of the closed bar on D1.
      2. If you do not get cnofirmation from W1 MACD, go back to D1 and wait until the AC on D1 has gone to Red and then is back to agreeing with SWI and MACD on D1. Then go back and check the MACD on W1 for confirmation.

Placing orders and additional orders: This is very Important

You will only consider placing initial or additional orders for up to the first 3 times the the AC agrees with the SWI, without the SWI changing colors. This means that if you get a valid entry the 1st time the SWI, AC and MACD are in agreement, you will place an additional order the 2nd time they are in agreement and another order the 3rd time they are in agreement while the SWI has not showing a change of direction. Then no more orders until SWI changes colors and goes back again.

Also for your Initial Orders, if after 3 tries with no confimation of MACD from W1, and no change in color from SWI on D1, you would stand down from any trades until SWI gave you a color change.

Well.....this should get you all started. I will try to post the rest of the rules for D1 when I return.

Enjoy

Yes.....

If at first you don't succeed, try, try again

You have the solar wind set at option 2 which means it is dynamic and re paints.
So any back test on the indicator will only show perfect results and not what you would have got in real time.

@ Damon;

Here is an MACD indicator which will make it is easier to visually determine when the histogram is above/below the MACD Smoothing Line. Make sure to change Colors# 4 and 5 to None.

TimeFreedom

I appreciate Damon for the efforts he has taken to find out a strategy which can work effectively on Daily charts. But to be frank, I am bit confussed with the changing strategies and so much of visual interpretations. There are quite a few in this Forum, who are working equally hard. May I request somebody proficient in Programming to create a simple Dashboard to indicate for each pair, OK time to Buy or Sell based on the set rules. Similarly for the pairs, which are emerging ....wait and watch.

This Dashboard may look like the one Swingman made for the 1st thread attached to a chart page OR it can be a standalone System like the IBFX-PRS or similar, where the daily OHLC data can be manually or automatically exported and calculations performed .

Just a suggestion i

Damon I am very glad, you have finally finished your journey to find the system. I have been waiting for a while. I hope everything works out. I will be looking at this as soon as I get home, and I will put some PDFs together and such.

Good Luck With it all
TheLegace.

Hey Mart......Thanks, for bringing this to the viewers.

Actually, setting the SWI to option=2 does cause it to repaint, but on a more positve note, setting the smooth=.1 reduces that repainting to the smallest possible factor and when you compare it to Williams % (14) crossing 50 level, in my backtest there was no question where the repainting occured.

Thanks again, but your point really holds no bering on the success of 3+1=WIN

Thanks TF...I am still out of town and taking a little break from the family. I will check this with the MACD settings for 3+1=WIN and make sure that they are simpatico.

Ah Good, not everyone has a look at the code to see what the indicator is doing.

I would hate for you to have spent months trading on a daily chart wondering what went wrong with the back test


Mart

Looks good. Looking forward to getting the PDFs when they are available, as I need clarification on the rules presently.

[quote=damonl;1982527]3 + 1 = WIN comes from a formula derived by having 3 agreeing indicators on the chart that you are trading in agreement with 1 indicator on a TF that is one higher.

So, for trading D1, when all three indicatrs are in agreement, you verify that they are also in agreement with W1. If not, then no trade.

And for trading H4, when all three indicatrs are in agreement, you verify that they are also in agreement with D1. If not, then no trade...............

First thanks for all your efforts. i appreciated it.

I understand more details will follow but in first reading the rules one thing is unclear. First you say that when 3 indicators agree on the chart you look for one indicator to agree on the next higher time frame. Then it seems you say that all three must agree on both time frames. Probably just a typo!

Any way, thanks for sharing your hard work and I look forward to following this system.

I understand that the indicator repaints. How many candles back does it repaint. I found something very interesting on the 1H chart, but I need to know how far back the indicator repaints before I can share what I found. It may be something great or it may be nothing at all.

Hey TF....This looks like a good indicator and it has all my favorite Christmas colors too.


Thanks for sharing that with us

[quote=dkhinckley;1983345] The only things that need to agree are the SWI, MACD and AC on D1 and MACD on W1.

Or SWI, MACD and AC on H4 and MACD on D1

Hey saab....

I am not sure how many are repainted on the H1, but on the D1 and H4, many times it is none, and many times it is only 1, but it rarely ever is more than one all though once in a while. If yoiu did your test using 1 repainting bar I think that you would be golden