Chaos Strategy - Mid term and long term trading. | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Mid/long term investments (6 weeks to 2+ years) 1 reply

Mid-Long term trades for Hedge Fund 9 replies

Government's Global Macro FX and Long-Term Trading Strategy 1 reply

EUR/USD Mid-Long Term 1 reply

daily analysis, mid-and long-term outlook 92 replies

Attachments: Chaos Strategy - Mid term and long term trading.
Exit Attachments

Chaos Strategy - Mid term and long term trading.

  • Poll

  • Profitable Strategy?
  •  
  •  
  •  
  • #1
  • First Post: Edited Apr 27, 2010 2:30pm Sep 8, 2008 11:47am | Edited Apr 27, 2010 2:30pm
Hi Guyz,

I know most of you will be much aware of this strategy, but for those who do not know or are new to forex, i would like to share the system.

The entire strategy is explained in the power point presentation,
Attachment

Ive created a template which you could use to preload indicators on the chart in metatrader.
Attachment
Attachment

Note: My friend from Malaysia turned 10,000$ to over 1,7 million in the 1st half of this year from this system and he also informs me that most people who have graduated using this strategy have become millionaires in short time spans!!

Note2 : All indicators can be found by default in metatrader here.
Attachment

Good luck to all and enjoy making pips!
  • #2
  • Sep 8, 2008 11:51am Sep 8, 2008 11:51am
and how much have you made ? how long have you used this strategy ?
i have both of both of bill williams' trading chaos books, haven't gotten around quite to study this strategy in depth.

also, what money management was your friend using ? 10,000 to over 1 million in 6 months, that's like WOW. but i tend to believe that to achieve this one has to use a very risky money management strategy.
please share
Twitter: @forexpokerpro
  • #3
  • Sep 8, 2008 11:55am Sep 8, 2008 11:55am
Hi,

I like some of Bill Williams ideas, and I have incorporated some of his techniques into my trading.

I tried to download your file, but when I tried to open it, I received an error saying that the file was corrupt.

Is anyone else experiencing this problem? If so, perhaps it could be reposted.

Thanks.
Visit my journal here.
  • #4
  • Sep 8, 2008 11:55am Sep 8, 2008 11:55am
Quoting BBPI_fxtrader
and how much have you made ? how long have you used this strategy ?
i have both of both of bill williams' trading chaos books, haven't gotten around quite to study this strategy in depth.

also, what money management was your friend using ? 10,000 to over 1 million in 6 months, that's like WOW. but i tend to believe that to achieve this one has to use a very risky money management strategy.
please share
He's the guy who shared this strategy to me, I've used it couple of times on the 4hour chart and profitable, although its a bit laggy to trade on these indicators, Not to mention you need a considerable stoploss, but its profitable in the end.

He didn't use much risks, instead he kept adding more lots on the wiseman1, wiseman2 and super AO signals and that way by the end of the trend he made a fortune. But this only works if you want to work on mid-term(1hour chart) or long-term (4hour/daily chart), not recommended for intraday trading.
  • #5
  • Sep 8, 2008 11:59am Sep 8, 2008 11:59am
Quoting Rosscub
Hi,

I like some of Bill Williams ideas, and I have incorporated some of his techniques into my trading.

I tried to download your file, but when I tried to open it, I received an error saying that the file was corrupt.

Is anyone else experiencing this problem? If so, perhaps it could be reposted.

Thanks.
I just downloaded and tested , it works properly, Maybe it didn't download properly on your pc, try re-downloading.
  • #6
  • Sep 8, 2008 12:06pm Sep 8, 2008 12:06pm
iw would be nice then to start discussing this strategy in real time, with charts & everything, that way i would finally learn it throughly lol
Twitter: @forexpokerpro
  • #7
  • Sep 8, 2008 12:13pm Sep 8, 2008 12:13pm
Quoting BBPI_fxtrader
iw would be nice then to start discussing this strategy in real time, with charts & everything, that way i would finally learn it throughly lol
Learning this strategy is a bit difficult, but once you get used to reading it, You'll see money everywhere!

That's why i started the topic, so we can discuss it in real time n stuff,

Just check the powerpoint presentation slides, everything explained perfectly and with chart visual explanations.

If you aren't aware, even if you don't like this strategy, if you just follow the "Bill Williams fractals signals" on a 1hour chart, you could scalp a few pips here and there.
  • #8
  • Sep 8, 2008 3:07pm Sep 8, 2008 3:07pm
Dznmrd,

Thanks. I finally got it to work. It's a very nice presentation, and I'm sure that those who are interested in or new to Profitunity trading will find it very useful.

I would be interested to hear how traders here have adapted it to suit their needs in the Forex market.
Visit my journal here.
  • #9
  • Sep 8, 2008 4:22pm Sep 8, 2008 4:22pm
Good job. Best explanation I've seen on the web. It is a profitable system. I use a slight variation and have had very good success. Doesn't sound like your friend was using the kind of money management advocated in the books though. Note that the Awesome Oscillator basically replaces the Profitunity Macd and the MFI of Trading Chaos first edition. It's function is more than just momentum. It helps you diagnose where you are in the Elliott Waves. Wave 3 will always be the highest peak of the oscillator. In Wave 5 the oscillator is always divergent from price. During wave 4 the oscillator will pull back to or almost to the zero and cross to begin wave 5. It's also best to analyse the wave under consideration on a chart with 100-140 bars. If you trade with the waves, you will be far more successful than if you trade against them. I also find it useful to add a 5 period moving average to the Awesome Oscillator. The divergence between the oscillator and the average creates buy and sell windows as in Trading Chaos 1st edition. It's also sometimes necessary to drop to a lower time frame to see the 1st Wiseman. I like to trade the 4hr and keep an eye on the 1hr or 30min for the signal. Hope we all get to learn more from this discussion.
  • #10
  • Sep 8, 2008 6:23pm Sep 8, 2008 6:23pm
I don't use MT so could you tell me the ma's so I can set them up on my own charting system. Thanks Tom
  • #11
  • Sep 8, 2008 7:55pm Sep 8, 2008 7:55pm
For the Alligator, if you do not have MT4. The values for the 3 moving average lines are:

13 period, shifted 8 period to right
8 period, shifted 5 period to right
5 period, shifted 3 period to right

All 3 lines are smoothed moving average (sma) and and use ((High+Low)/2))
  • #12
  • Sep 8, 2008 8:40pm Sep 8, 2008 8:40pm

when everything seems too good to be true it probably is
  • #13
  • Sep 8, 2008 8:47pm Sep 8, 2008 8:47pm
Quoting suspect

when everything seems too good to be true it probably is
Seeing is believing, but sometimes you got to believe and you will see!
  • #14
  • Sep 8, 2008 8:52pm Sep 8, 2008 8:52pm
Quoting dznmrd
Seeing is believing, but sometimes you got to believe and you will see!
OK got you... seeing is believing! Show us your live statement.. IŽll believe then!
  • #15
  • Sep 8, 2008 9:08pm Sep 8, 2008 9:08pm
Quoting suspect
OK got you... seeing is believing! Show us your live statement.. IŽll believe then!
I think you got me wrong, I meant "Seeing is believing" .. but "sometimes you got to believe in order to see"

If you believe this method works, you'll probably see the money uve been waiting for..

BTW, I'm not the guy who made 10k to 1700k, but the guy who did, shared this method to me in my bad trading phases to help me out and profit.

As i said, its not an intraday strategy, its only if your looking forward to make the most money from a mid-term or longterm trends, by using the wiseman 1,2,3 strategy, that way you can add more and more lots in a trend to make a astronomical gains,

Im still waiting for the "Alligator Jaws" to open up nicely hehe (GBPusd and GBPjpy are showing open jaws on downtrend) and sure ill show a live statement when im successful.
  • #16
  • Sep 8, 2008 9:11pm Sep 8, 2008 9:11pm
Quoting dznmrd
I think you got me wrong, I meant "Seeing is believing" .. but "sometimes you got to believe in order to see"

If you believe this method works, you'll probably see the money uve been waiting for..

BTW, I'm not the guy who made 10k to 1700k, but the guy who did, shared this method to me in my bad trading phases to help me out and profit.

As i said, its not an intraday strategy, its only if your looking forward to make the most money from a mid-term or longterm trends, by using the wiseman 1,2,3 strategy, that way you can add more and more lots in a trend to make a astronomical gains,

Im still waiting for the "Alligator Jaws" to open up nicely hehe (GBPusd and GBPjpy are showing open jaws on downtrend) and sure ill show a live statement when im successful.
Good Luck then! YouŽll need it!
  • #17
  • Sep 8, 2008 9:20pm Sep 8, 2008 9:20pm
Quoting taxgeek
Good job. Best explanation I've seen on the web. It is a profitable system. I use a slight variation and have had very good success. Doesn't sound like your friend was using the kind of money management advocated in the books though. Note that the Awesome Oscillator basically replaces the Profitunity Macd and the MFI of Trading Chaos first edition. It's function is more than just momentum. It helps you diagnose where you are in the Elliott Waves. Wave 3 will always be the highest peak of the oscillator. In Wave 5 the oscillator is always divergent from price. During wave 4 the oscillator will pull back to or almost to the zero and cross to begin wave 5. It's also best to analyse the wave under consideration on a chart with 100-140 bars. If you trade with the waves, you will be far more successful than if you trade against them. I also find it useful to add a 5 period moving average to the Awesome Oscillator. The divergence between the oscillator and the average creates buy and sell windows as in Trading Chaos 1st edition. It's also sometimes necessary to drop to a lower time frame to see the 1st Wiseman. I like to trade the 4hr and keep an eye on the 1hr or 30min for the signal. Hope we all get to learn more from this discussion.
The real deal.
  • #18
  • Edited Mar 1, 2011 8:43pm Sep 8, 2008 11:03pm | Edited Mar 1, 2011 8:43pm
Thanks! Here's a look at the chart in case some of that wasn't clear. The odd looking indicator that price is dancing around is a 7 period, .7 deviation bollinger band. That takes the place of the Alligator. Even John Bollinger admits that his bands do not give trading signals, but if you shrink one up ridiculously small it becomes a trend indicator and does give signals. The obvious signal is a close on the other side of the band. This use is based on an idea of Tom Joseph. It's a really good way to find the end of wave 4 and the beginning of wave 5. You can see how the awesome pulls away or crosses over the moving average to create those buy and sell windows. I don't use his fractals. I can spot support and resistance better without them cluttering up the chart. Most people take the Williams indicators and try to make a mechanical system of them, but I don't think they are intended that way at all. In the later books he doesn't mention Elliott Wave much, but that is still what he trades. He has simply found ways to quantify the waves and make them more visible. That is why his work is valuable, and why he is a successful trader. The more you know about wave trading, the better his system will work for you.
  • #19
  • Sep 8, 2008 11:13pm Sep 8, 2008 11:13pm
The BB signals in the middle of that chart would actually have worked in reverse. Meaning buy on a close below and vice versa. So like anything not to be followed blindly.
  • #20
  • Sep 9, 2008 12:35am Sep 9, 2008 12:35am
Quoting taxgeek
Thanks! Here's a look at the chart in case some of that wasn't clear. The odd looking indicator that price is dancing around is a 7 period, .7 deviation bollinger band. That takes the place of the Alligator. Even John Bollinger admits that his bands do not give trading signals, but if you shrink one up ridiculously small it becomes a trend indicator and does give signals. The obvious signal is a close on the other side of the band. This use is based on an idea of Tom Joseph. It's a really good way to find the end of wave 4 and the beginning of wave 5. You can see how the awesome pulls away or crosses over the moving average to create those buy and sell windows. I don't use his fractals. I can spot support and resistance better without them cluttering up the chart. Most people take the Williams indicators and try to make a mechanical system of them, but I don't think they are intended that way at all. In the later books he doesn't mention Elliott Wave much, but that is still what he trades. He has simply found ways to quantify the waves and make them more visible. That is why his work is valuable, and why he is a successful trader. The more you know about wave trading, the better his system will work for you.
Hi taxgeek, could you please share your template? thanks
0 traders viewing now