Nanningbob 4H trading system

Good call and good read, that was good for a couple hundred pips. Take your wife/husband out to dinner tonight.

thanks! im only 18 so yea single and schooling. eagerly awaiting your V3. wishing u success in refining this great system.

After a couple of really busy days the market is taking a breather. Almost all the currencies have moved to the center so we wait until something happens. The Pound is beginning to look good. So we try.
TAKE PROFITS
aud/nzd +1 I felt this trade was going nowhere and lost its signal.
aud/cad +41 took this trade during the USA session but not counted in the totals because I had not called it. But it gave me a breakeven day.
STRADDLE TRADE

CLOSED FOR LOSS
USD/CAD-78 2L +45 The RWB lines are all below 15 so I closed this trade out. I added a 2nd level when it crossed the MA 50. I thought this would be my best exit.
OPEN TRADES

usd/chf -344 2L -217 3L -41 I added a level when it crossed the MA 50

TOTALS
total for day -32
for the week -20
for the month +961
Carry over -602
primary trades
BUYS gbp/nzd, gbp/chf, (aud/chf maybe if it goes higher on the chart)
SELLS eur/gbp
Secondary trades
BUYS gbp/usd
SELLS eur/cad

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility.
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin.[/quote]

Glad I exited that aud/nzd trade it sure took off in the wrong direction after I got out. Good to see the markets starting to bounce around again. Time to make money. Now if I can just get enough of a retrace on the usd/chf to minimize my DD I am looking at a good 1st half of the month. I love it when the market bounces because my system really works best when it does.
TAKE PROFITS
eur/gbp +58 dang it kept going through support but I wanted to go to bed and not lose my profit. If you stay in 100+
gbp/chf, +96
gbp/nzd, +74
gbp/usd +79

STRADDLE TRADE

CLOSED FOR LOSS

OPEN TRADES
eur/cad not entered yet
usd/chf -360 2L -233 3L -67

TOTALS
total for day +307
for the week +287
for the month +1268
Carry over -660
primary trades
BUYS eur/aud, eur/cad
SELLS aud/chf, aud/nzd, aud/usd, aud/jpy (IFFY)
missed the nzd/chf (sleeping)
Secondary trades
BUYS eur/nzd I missed my first good entrance but if it retraces I will enter.
SELLS

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility.
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin.[/quote][/quote]

Its 54 to 54. Get a lot of negative votes every time I get a DD. Then all of a sudden boom the profits roll in. Forex trading takes patience, its ok, I like making money.

Hey Bob, It looks like you've been in that usd/chf trade since Jan. 19th or 20th right? Since then you pocketed 173 pips on that pair but a current DD of 660 for a net of -487. Don't know what your swap was during that period; poss. or neg. I know this is hindsight and coulda, woulda,shoulda, but if we incorporate divergence into the picture, there would have been two trades in that period for at least 50 pips each (I'm using a 50 TP) and a possible 100+ pips each. Biggest DD was -45 pips. RWB lines at extreme, price in top 1/3 of chart and RSI divergence.

I love your divergance and is being incorporated into Ver. 3 but for a little different reason. You will see. Ver. 3 entrances will eliminate a lot of the DD and will give us great opportunities during long drawn out trends. I will not be able to post version 3 this weekend because in my live testing I spotted some bugs. I have eliminated the bugs but I want to demo test one or more days to make sure all components are working. I have designed my own indicator for Ver. 3 and the programming is a little tricky. I made a mistake in the code but I think I have corrected it. Here is a pic of the new system with lines. Basically I have written a program that guess pretty close the next S/R line and tries to put an entrance near that point. From demo testing and pictures it looks like a real winner. Here is a pic of what I am trying to do with my new indicator. When I get this all done I will start a new thread so guys dont have to wade through all the previous material to get to it. Thanks buddy your suggestions have been a great help.

Here is a pic of what the new Ver. 3 will look like. I have a new indicator which is the red line high and red line low. The EA only enters when price breaks that line, so I think we have made a superior entrance point. Even if price goes against you for a while it wont for long. Had some real nice profits on the demo tests. Also added Hopwoods trade manager program. It will bring your SL to break even and then that eliminates suprise DD and peeker trades that sometimes happened with 3x3 cross, actually all MA crosses have this problem. So here are the rules.
1. New indicator #1 divides the screen into fourths (bold gold lines). We trade in the top and bottom 25%. Sell EA used only above this line. Buy EA used below this line. The EA only enters when price goes above this line by 1 pip. Gets you really a really good entrance I think. Shouldnt be much DD.
2. R,W,B lines near the top or bottom of the screen, also taking secondary trades.
3. RSI is above the 30 or below 70. Rule 3B. May always take trades above 90 or 10 RSI. I changed the 8 RSI to a 5. The position of the RSI doesnt change but the lines are more definitive. I have the old RSI 8 in dotted lines for comparison.
4. Rule 4 is when we see divergance on the RSI, you can take half profit and go for the run up/down in price. You will put a 45 degree angle line on the RSI and stay in the trade until the RSI crosses that line. This is seen on trades 2 and 4. If you did this with the others it would not work as well.
5. Sell the Rallies, buy the dips. Trade 5 is a rally that came back to the gold line and we take that trade. Not sure how to explain it but we can call it a tertiary trade. Price pulls back up to an old S line so we take it if the EA will.

SO here are the trade scenarios.
1. secondary trade
2. Primary trade also divergance. Draw 45 degree line on RSI and go for the big pip move. Take half profit and let it ride till you cross the 45 degree line on RSI.
3. Same as #1
4. Same as #2, this time the RSI ride is a very good one. We actually stay in this trade for 3 days. We took half earlier and we are now riding the trade down.
5. Tertiary trade price bounces back up to an old S line so we take it as it nears the gold line and Old S line. If price doesnt break that red line we are not in. If we get in and price goes against up we are at the top of the chart.
6. With a break in the 45 degree line and divergance on RSi we now go to a buy. This trade probably hit our break even for no pips.
7. Primary trade- off of divergance and probably trade 6 didnt get us much so 7 is another entrance.
After trade 7 there may be some secondary trades.

That is what I am trying to put together but I need to fine tune it and make sure everything is working. Will try to post it Tues or Wed. unless I come across another problem. Enjoy the pic.

In the above pic I think you can see that the vast majority of the time that new red line indicator gets you close to the new S/R line. When price gets in range, turn the EA on and let it handle the entrance. I will have several buy and sell EAs. One with a no take profit and one with a take profit. There will be second level and third level reentrance EAs but they will have there own Magic numbers and will be handled by the Hopwood Trade Manager. So to do multi level trading you will need to turn on the 2nd EA. Hopefully that will be a rare event now. There will be a Hopewood trade manager for each magic number.

This maybe my last or second to last post for ver. 2 trades. As you can see by my previous pic I will want to switch to my version 3 system as soon as I get it working. But until then here are my results for Friday. I also saw no new trades to take. I am keeping my USD/CHF trade when I switch over to my VER. 3. I am going to use the ver. 3 programming to use as my first recovery trade using the new system. Since there are no new trades for Monday, I will be enjoying Chinese New Years here in China. What that means is I will be getting no sleep. It is 330 PM here and they have already started firing off fireworks. I already know I will be staying up all night because they will fire off fireworks here all night and wont quit until the sun rises. So no use in trying to sleep. I plan on writing finishing my ver. 3 booklet tonight. I will send it out to a handful of traders who have been using my system to ask for corrections and for their questions and insight.
HAPPY CHINESE NEW YEAR. BOOM BOOM BANG BANG ALL NIGHT LONG.

TAKE PROFITS
aud/usd, +67
STRADDLE TRADE

CLOSED FOR LOSS

OPEN TRADES
SELLS
aud/chf, -29
aud/jpy -19
aud/nzd, -22
nzd/chf -32 dont know why I took this but price went back up so I did and price went back up again, sheesh.
eur/aud, -29
eur/cad -49
eur/nzd -48
usd/chf -421 2L -294 3L -128

TOTALS
total for day +67
for the week +354
for the month +1335
Carry over -1071
primary trades
BUYS I saw no new trades to enter.
SELLS
Secondary trades
BUYS
SELLS

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility.
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin.[/quote][/quote][/quote]

I want to compare my ver2 with my new ver 3 trade. Here is my version 2 trade with the 3x3 entrance. It is not a bad entrance but I am sitting on a -32 pip trade. There was no Trade Manager to put my trade to break even. I dont think there was a big enough move for the trade manager to go to break even but I am still sitting in a good trade. Not complaining the system does work. Here is my present trade and how I am sitting on it.

With the ver. 3 system I enter the trade when price crosses the red line. Near the blue line and the green check. Probably the entrance would been earlier because the lines continue to move as price moves up but it would not have been that much earlier. The trade manager would already have set the trade to break even so I would never go into a negative trade at this point. From the original entrance the trade would have gone 80+ pips to the good at one point and sits around 20+ now. Either way I am sitting on a winning trade. So that is what we are looking at if I can finish this off Monday or Tuesday. Here is a pic of the Ver 3. trade. Obviosly if price had not spiked up a second time we would not be in the trade under ver.3 but we are in ver. 2 so there are trade offs between the systems. Want you to know both sides.

I just noticed that my ask line and the indicator line are the same color. I will have to change that before I put the final product up so dont let that confuse you on my example. I am not talking about the red ask line going all the way across the screen but the read line up near the blue line.

When I write the rules you will not want to turn the EA during the strong move from the grey candle crossing the gold line but would want to wait for the next candle to let price settle a bit. You would get in too early if you did even though that entrance would still be better than the ver. 2 entrance.

Toothman here is your divergence and how it will be used with this system. You have a double top and divergence on the RSI (white lines) So this trade you would want to take half profit at some point and let the rest ride until the RSI recrosses the white line. Hey we will be using a counter trend system to follow the trend. Neat HUH. You wont win all of these but we will take our shots at it.

Thanks very much for all your hard work and sharing it with us. Great improvement, as you quite rightly say dd should be much less with this new system. Combining mptm with your system is another stroke of genius. Substituting the bolinger bands for RSI seems to be favoured by most of the professional traders if FF. Looking forward to the release of Ver3 when it comes.

Kind Regards.

Just got done writing the Version 3 book. Sending it too friends now for proofreading and understanding. If you want to proof read the book send an email to [email protected] and I will try to send you a copy. Remember this is not the final version of the book though. I will want to rewrite it one more time before posting with changes.

Hi Bob,

The version 3 looks excellent, seems that you have ironed out a few of the entrance problems and questions and have defined the new entrance points a lot better.

Look forward to using this system over the coming weeks.

Thanks again!

YUP. You just showed why I am a countertrend trader, you made money. Lose money trying to follow the trend, make money on the retrace.

I am starting my switch to ver 3 trades late yesterday. I will be posting both results as I close out my ver. 2 trades for ver. 3 trades. This will give you a comparison of how I think the new entrances are going compared with the old version. I am going to start posting sections of the new system as I complete them. When it is all done I will start a new thread but I want you guys to comment and study it before we show everyone else. I also want to get rid of that stupid poll 54 -55 when I think I am the only trader in FF who has posted all his trades before he takes them for the last 6 months and is profitable. Some people think a trading system should never have a DD but that is impossible. Knowing how to handle the DD I think I have the only thread that does that and am willing to show publically the good with the bad. Anyway, I will spend all day getting ver. 3 ready for posting. I will do it in sections as I complete it. Right now it is in pieces on 4 different accounts. Each of the successful sections will be combined and posted. I believe I have the refinements I want. The posted version will be slightly different than what I have already posted. See ya later. I am going to eat breakfast.
TAKE PROFITS

STRADDLE TRADE

CLOSED FOR LOSS

OPEN TRADES
SELLS
aud/chf, -66 ver. 3 trade -3
aud/jpy -22 according to ver. 3 rules we would not have entered yet.
aud/nzd, -40 ver.3 -19
nzd/chf -45 ver.3 +1
eur/aud, -89 ver. 3 -12
eur/cad -104 ver.3 -13
eur/nzd -97 ver. 3 -11
usd/chf -441 2L -314 3L -148 Ver. 3 -6 This wont be a fair comparison but lets see if ver. 3 will get me out of the hole. Should be interesting

TOTALS
total for day 0
for the week 0
for the month +1335
Carry over -1429
primary trades
BUYS usd/cad (some of you know how much I hate trading this pair but I will give it one final chance with the new system, otherwise it is going on my forever banned list)
SELLS
Secondary trades
BUYS
SELLS

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility.
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin.[/quote][/quote][/quote]

[/quote]

Bob, I sent you an email. Can you read before posting the system? I have a few odds and ends you may be interested in . Looks like version 3 is cutting DD already!

I have just started using Hopwoods Multi-purpose trade manager. Can anyone tell me whether the EA automatically adjust from 4 digit accounts to 5 digit accounts? I noticed he only has one version.