Trading aud/nzd successfully

OK, here it is. This package is my successful package for trading the Aud/Nzd. I started OCT. 22 live and made 500 dollars on the original 500 I posted. I then transferred 500 to another account and traded both accounts live. I also added some other currencies from time to time but they got stopped out at times. Aud/Nzd is the only one that never hit my stop loss in the 4 weeks trading this system. Instructions are inside the folder on how to load the EAs. I will show pics and explanations in the next several posts.

After 9 people downloaded we made two changes the Sell template didnt have the EA attached. You need to drag the sell EA onto the chart and save the template. We changed the Excell and Word documents so they would be compatible to earlier versions of Windows.

The excel program was donated by FrostCall. I consider it a brilliant piece of work and one of the most useful tools ever used in trading forex. Thanks I cant say enough on what a great piece of work it is.

Page 2 posts 24 and 25 has more info on the excel program and a good pic of a big trading day.

I have added a 35x25 set at .05 and multiplication of 1.8 Included is the excel program to show you what the numbers it will do.

Post #383 and after will tell some changes I have added from the original 35x20. I changed the program to 35x25 to give more range with a stop loss of 210. I will keep both of them posted here so you can try both for yourself. I started using the 35x20 profitably but I wanted just a little more range so I have added the 35x25 to the list of EAs.

PLEASE SEE PAGE 31 POST#458 FOR THE EA THAT REALLY OVERCAME SOME OBSTACLES

Please see page 50 post #736 for a major revision of this system. This is based on a 1H Chart.
Post #826 p. 56 is the similar as post #736 but is based on the 5M chart.
Page 62 post 920 have the latest versions of the buy or sell only EA. They are different from the ones posted here which buy and sell both directions at the same time.
For those who have brokers that use 5 digits p.64 post 946 has an adjusted EA to experiment with.

P. 101 post 1514 has a note on the importance of live vs demo trading.

a spread check before entering is on p. 11 post #1658

Here are pics of my profits. You will see a couple of stop outs and take profits. The Aud/NZD never stopped out my EA during this time but some other currencies I was testing did. This is all live testing, none of this is demo or back testing.

In this first pic you will see how I started with 500 dollars and traded the AUD/NZD and Eur/GBP exclusively. It has a nice steady climb. Then you will see a straight line drop. That is where I took 500 dollars and transferred it to another acount. I added some other currencies and they took some stop losses. I was using 5 currencies and got as high as 20 place in the Nov. IBFX contest. I then took a hit in the loss column, stupid EUR/CAD and decided not to ruin my month. I took a check for 500 dollars profit and will start again trading them Monday.

My second account also did well but took a hit last thurs. Again I wanted to get my profits before IBFX did so I cut a check for 400 and will start again Monday. I am going to use this one to see if you can use this EA with 250 dollars and trade it successfully. I think the amount maybe too small but we will see what happens. The total take home profit is 900 dollars from an original 500 dollar investment and I still have 650 in both accounts to trade with. A happy thought, I am now trading with free money.

I always teach you must take your original money out so you never worry about losing it. 2nd its only the money you actually take home that counts everything else is fluff and mirrors.

You will notice a nice steady climb in profit over a 3 week period. The loss at the end was just my stupid stubborn refusal to have a day with a loss so I kept trying and it just got bigger. Sometimes you just take the hit and quit. Trade another day. Overall with only 500 dollars I took home over 900. My next post will be about why the AUD/NZD. I would ask that noone post until I get the rest of the information up. I maybe gone for a couple of hours.

This is a pic of the 35x20 buy screen. It also has the pivot points indicator. If you stay between the white lines you are having a good day. If it goes outside the white lines you may want to monitor it more closely.

Here is the 35x20 sell screen it is the more important one. It is based on an 80 MA. The green lines are 50 above and below. The yellow are 100 pips above and below and the red are 150 pips above and below. The EA has a 200 pip stop loss built and and you can go back in time and see that the AUD/NZD will usually stay between these red lines. As long as price does its happy trading. If you start the EA when it is near the white lines your stop losses will be on the other side of the red lines. This is your safe trading area. The best chart to use this warning device on is the one hour chart.

You can also test other pairs to see if they work with this EA by eyeing their history of staying inside the red lines.

Someone will come along and say, "What the heck. Aud/Nzd, you nuts. Why would anyone trade this pair?" Well this pair has some unique features which no other currency has. There are two others that are similar in action but they only do it part of the day.

1. The Aud/Nzd has a limited open time of trading. The banks for both open about the same time and close about the same time. The rest of the day they are in limbo, so they just bounce up and down all day.

2. Being tucked away in the far corner of the world they are very active with each other but they will move all day in a limited range because they are two very active import/export countries.

3. When you look at the 1H chart you will notice that price moves in 100-150 pip range and then reverses outside of the Aud/Nzd dollar markets. So beginning with the JPY open until the USA close, they are very limited in their range. You can see that by using my 80 MA chart with the green, yellow and red lines. It is very rare for it to operate outside of these lines and almost never outside its own market times. Therefore to trade within these time frames can be extremely profitable.

4. Even when they operate outside the lines they still stay within the 150 pip or 3 line range at almost all times. Notice the pic below. The distance from black dotted line to black dotted line is one day or 24 hours.

Now the process of crossing 3 lines and changing directions gives a nice range to play with a 200 pip range EA. But there is more and you will never know how crazy this idea becomes until you study a 5 minute chart because here you will see some really amazing things happening.

Look at the chart below and notice the following action:

1. Notice the 3 purple lines marked 1. 2. 3. The distance from 1 to 2 is 50 pips and the distance from 2-3 is 80 pips. Notice how many times price bounced up and down between these two points during this 8 hour period.

2. Look at the number of times from a to b, b to c, c to d, d to e, etc price covered this 50 pip range.

3. Look at how many times I put a check mark on the screen showing it had made a 50 pip move in a 5 minute period.

4. Notice the 80 pip range from purple line 2 to 3 and how many 50 pip 5 minute candles were there.

5. I count 12 times it moved 50 pips in 5 minutes periods during this 8 hour period and that doesnt count the times it took 10 15 or 20 minutes to do a 50 pip move.

6. Now imagine an EA trading both ways, a buy and sell at the same time, taking profit every 35 pips. Yeah you got it. Just to let you know, trading nickels I made over 70 dollars during this period. Plus it reenters every 20 pips so every trade has multiple winners. HMMMMMMMMM Ka ching.

Now do you understand why I started with 500 dollars, took home 900 dollars and still have over 600 left to trade with in 2 accounts?

These are the rules I traded by the last 4 weeks.

1. I turn on the EA around the JPY open 0 GMT or 8pm EST USA.
2. I find a good place to close before the USA open and take my profit.

Thats it.

Can you trade the USA section safely. I have friend who is trading it successfully but suffered two stop loss hits in 3 weeks. He said he made over 500 dollars in 2 of the 3 weeks. The one week he got hit by a couple of stop losses he made around a 100.

I have not had a stop loss trading the above hours with the Aud/Nzd but I have had trying to use some other currencies with this.

I will be leaving for Hong Kong for a conference Tuesday night so I am not going to have a lot of time answering all your questions. I will do my best. Just demo the thing and enjoy. IBFX has changed the spread from 11 to 14 pips but it is still profitable. Also because price moves so rapidly there is slippage so expect it. Good luck. So fire away with your comments.

The instructions are in Chinese. Where does the "fact finder" go? What is it for? All else I can figure out. Thanks.

I use Office 2007 and it does not work well with earlier versions of Word. I went back and resaved them in earlier versions of Word so it should work now. I also added the EA to the sell template, It was not there in the original package but should be there now. Please see if I made any other mistakes.

Bob

humm?? Mine is English,

Loading instructions:
1.Put the entire 35x20 profile folder in the profile folder of MT4
2.Put the 4 35x20 buy/sell 7L200L EAs in the experts folder
3.Put the PB_autopivots2 in the indicators folder
4.Put the Close All in the scripts folder
5.Put the 35x20 buy.tpl and 35x20 sell.tpl in the 1st templates folder
6.Put the 35x20 fact finder on your desktop and it will give you information about the settings in the EA. You can play with the numbers if you want to change settings inside the EA.
7.Turn off your MT4 and restart.
8.Go to profiles and click on the 35x20 profile and everthing should be set up for you
9.VERY IMPORTANT ------------------- .05 means lots not 5 pennies. If you have a regular account this will trade .50 cents. If you have an IBFX micro account it will trade nickels. You can trade this on 500 dollars with a micro. You cannot on a normal account. You will need to demo it on 5000 or more to trade fifty cents.

What are the system rules that the EA implements? In other words, how would I trade this by hand?

Tommyd and nanningbob, thanks a lot for your replies. I will start demoing this next week.

In the spirit of pretty graphs here is one of my live accounts using this EA for this week.

I have tried trading the aud/nzd by hand and I dont think it can be done. only a computer program can pick up these quick moves when they happen The spikes in the 5 min chart where it moves 50+ points. It doesnt stay in one place long enough to pick up the trade. You can put a 5 ma high and a 5 ma low and try to do a enter sell when it breaks the high and a buy when it breaks the low buy my experience was it was too quick to catch by normal trading.

I've never even looked at this pair before. On my broker, the typical daytime mid-week spreads are 15-25 pips. The daily ATR (14) is around 250-300 pips.

Seems kinda expensive to trade, at least at Oanda.

In that case, it will probably not be very profitable for you.

[quote=nanningbob;2369226]OK, here it is. This package is my successful package for trading the Aud/Nzd. I started OCT. 22 live and made 500 dollars on the original 500 I posted. .......quote]

Thanks again Bob for your work and most important sharing that.
Now you started with a $500 account and your intial lot size is 0.05 (5 cents) and with 7 levels x 1.6, your final lot size is 0.88 ( 88 cents), right?
My question is if one is trading a mini dime account and start with lot size of 0.01 (10 cents), then the final lot size will be 0.21 ($2.10), will it be safe to start with say $1200?
Is the above assumption correct or am I missing something?

So where are y'all trading this anyway? What bid/ask spread are you dealing with?

IBFX, it has a 14 pip spread.