To get this thread started. I first want to thank tKimble for introducing the basic system to Forex Factory. The systems he has brought to the forex factory are truly ingenious. The thread for his system can be found here: http://www.forexfactory.com/showthread.php?t=19391
I would like to bring the adjustments I have made to his system to the general public of the Forex Factory for analysis. The adjustments from what I have seen allow you operate and make pips in both trending and ranging markets. The system details are as follows:
Open Close Trending Hedge System Rules for GBPJPY
25 period Linear Weighted Moving Average applied to Median price (HL/2) with +50 Level & -50 Level applied to a 1 hour chart (H1)
Basic rules:
1. Take long position when price goes through +50 level.
2. Take short position when price goes through -50 level.
Adjust SL hourly at +50 level if in long position
* example: direction is north SL moved up to 25MA -50 every hour.
Adjust SL hourly at -50 level if in short position
* example: direction is south SL moved up to 25MA +50 every hour.
** Do not adjust SL against your current position.
* example: in current long position and 25MA goes down.
* Close current long position if price goes through -50 level and open short position
* Close current short position if price goes through +50 level and open long position
Hedging rules:
All of the above rules are the same except for the following changes.
1. Only close a current position with the basic rules if your position is in positive or neutral pips.
2. If your position is in negative pips, place an equal size position in the oposite direction at the +/- 50 levels to hedge your current position.
** Treat any hedge positions the same as you would with all other positions in the above rules.
example: North bound hedge position goes positive and is still positive when the market reverses direction south below the -50 level. (only closing your north bound hedge position if your hedge position is + or neutral when your price goes below the -50 level as stated it the hedging rules above). You would close the hedge position at this time.
*** Always have pending hedge in place to protect your current position if it goes against you.
*** Don't place SL on your current position until it is in a positive territory. Protect your winnings.
Adjustment on lot size rules:
** If you are using a flat % of your balance (ex. 2%) then adjust your positions when the price by adding additional lot size when the price goes through the +/-50 level.
I would like to bring the adjustments I have made to his system to the general public of the Forex Factory for analysis. The adjustments from what I have seen allow you operate and make pips in both trending and ranging markets. The system details are as follows:
Open Close Trending Hedge System Rules for GBPJPY
25 period Linear Weighted Moving Average applied to Median price (HL/2) with +50 Level & -50 Level applied to a 1 hour chart (H1)
Basic rules:
1. Take long position when price goes through +50 level.
2. Take short position when price goes through -50 level.
Adjust SL hourly at +50 level if in long position
* example: direction is north SL moved up to 25MA -50 every hour.
Adjust SL hourly at -50 level if in short position
* example: direction is south SL moved up to 25MA +50 every hour.
** Do not adjust SL against your current position.
* example: in current long position and 25MA goes down.
* Close current long position if price goes through -50 level and open short position
* Close current short position if price goes through +50 level and open long position
Hedging rules:
All of the above rules are the same except for the following changes.
1. Only close a current position with the basic rules if your position is in positive or neutral pips.
2. If your position is in negative pips, place an equal size position in the oposite direction at the +/- 50 levels to hedge your current position.
** Treat any hedge positions the same as you would with all other positions in the above rules.
example: North bound hedge position goes positive and is still positive when the market reverses direction south below the -50 level. (only closing your north bound hedge position if your hedge position is + or neutral when your price goes below the -50 level as stated it the hedging rules above). You would close the hedge position at this time.
*** Always have pending hedge in place to protect your current position if it goes against you.
*** Don't place SL on your current position until it is in a positive territory. Protect your winnings.
Adjustment on lot size rules:
** If you are using a flat % of your balance (ex. 2%) then adjust your positions when the price by adding additional lot size when the price goes through the +/-50 level.
