Buffet Weekly System

Please read all before attempting or asking questions. You will be blessed for reading this post.

Hey everyone. I have figured these stuff out. This whole forex theory we've all been spending so much time on. Before I start, I want to introduce myself. I am a very young graduate student from Toronto, Canada. Born in Africa. Now in Eastern NY. You won't expect someone like me to come up with this amazing strategy. Well, I didnt. I used ideas of other to formulate this system which has proven to be 90-95% accurate if traded correctly.


Before we move on, I want to make some crucial points.
I trade the longer time frames. Specifically the 4h TF and Daily. I believe that these 2 time frames are the best of all time frames because you can catch majority of movements in a trend without having to be at your computer all day. The weekly is good as well but there are certain days where people should not trade a certain direction or trend simply because of lack of volume. What I have come to discover is this. Recently, E/U and G/U have been on a downtrend for weeks and months but we still have to join it trade on the right day to maximize our profits. This whole month for example. The bulls have dominated Sunday, monday and Tuesdays during this downtrend period. Recently, It's been the bears market when it comes to trading the E/U and G/U. But if you observe, you'll see that sunday to tuesdays have been dominated by the opponent (Bulls). This is not entirely true but true enough to keep me out of taking a long term position on those days. So I've come realize that the bears usually take over starting wednesday - thursday night or friday mornings. Hence, I take my positions from the appropriate times on wednesdays till thursday nights or friday mornings. I end up making 200 pips or more some weeks on the G/U or E/U.
Now to the point:
I use the Slope direction line indicator. set one at 80,3 and the other at 14,3. Secondly, use RSI 14 and set level at 50.
Lastly, which is the heart of it all, use the Average Directional movement Index (ADX) indicator. (Please make sure you understand how to use this indicator. Set it to 14 periods and level at 25.

Work with all TF and currencies.
But best with E/U and GU. I strongly suggest these 2 currencies because they are stable.

4hr TF examples of Trade:
Rules: Long position
1. Look on daily to see trend. If slope line (12) blue and has crossed 80 (blue) means trend is up. "(I use Red and blue colors)".
2. Now we look on the 4hr time frame and wait till 12 (blue) has crossed 80 (blue) going upward.
3. Now we look at ADX and make sure it is moving upward above the 20 level line.
4. Lastly, we look at RSI and make sure it's above the 50 level line.
Then we take our position.

Short: Vice Versa but i'll explain again for all those right brain dominant individuals who are bad with instructions.
1. Look on daily to see trend. If slope line (12) red and has crossed 80 (red) means trend is up.
2. Now we look on the 4hr time frame and wait till 12 (red) has crossed 80 (red) going upward.
3. Now we look at ADX and make sure it is moving upward above the 20 level line.
4. Lastly, we look at RSI and make sure it's below the 50 level line.
Then we take our position.

Aim for 100 pips at a time or you can go for a straight 200 pips on each of those 2 currency pairs i named above (EU, GU) (Wed. - FRI) why? because Volume is at its height on those days before diminishing on midday friday.

I use the Vegas 4hr Funnel chart and/or his Daily Fibonacci Chart as Support and resistance. I use it as my TP. So please use it for my accuracy. Another alternative is to use the "center of gravity indicator".

hint: the ADX lets us know how far the swing has moved. If ADX is almost at it's "ceiling" or above 50-60, and start coming down, means the market is in ranging motion. Which means we should not trade a TF if ADX is going down. If you look at the shorter time frames though, you will see some going up on the ADX. You can trade those time frames by confirming with next higher TF but i dont recommend trading less than the 1hr TF. I personally think the 4hr is the best alongside with the Daily. But please learn to use the ADX!! backtest and demo to see how to really read the ADX indicator.


Personally, I've come to realize that the short time frames should be used for precise entry of positions not to trade. We should always trade longer TF because it's easier. Minimize your lots sizes to be able to trade 4hr or daily TFs.

Consequently, whenever our criteria's are met in our strategy, we should take our position a TF below. So i usually wait to take my position on the 1 hr TF after everything has set up on the 4hr and Daily. The reason is because, sometimes my strategy would all be ready for me on the 4hr but when I look at the 1hr, I see it in it's ranging motion which means if I take a position, i'll probable have the trade against me for a bit before going my way. So if you want to minimize your SL and have a the most precise entry, I suggest you keep going down on TFs to see if everything has set up as how u want it. Even till the 1Min TF. Thats alot of time tho. I just take my positions on the 1hr or at most the 30 min TF. However, I trade my position based on the 4hr.

One last statement. I repeat! Trade from Wed. until friday morning or Thursday night if u want to avoid the last news release of the week which during the London open and U.S. open.


Here are the links to the indicators which are not already in your platform. I know that MT4 already has ADX and RSI built in it.

http://www.forexfactory.com/showthread.php?t=43303 - Center of gravity
http://www.forexfactory.com/showthre...t=4113&page=32 vegas daily or 4h
http://www.forexfactory.com/showthread.php?t=18692 - Slope direction Line indicator.

Sorry I couldnt attach all the indicators. Very very busy. Grad School and Work and trading. W-F.


All things are possible. I have been learning forex for less than a year and I feel like a pro already. I know it takes people many, many years but I had the time months ago as a young student with no responsibilities to study, study, study. 5 hour a day. I went insane. But it's all worth it.
One last thing. ALWAYS TRADE WITH THE TREND. THEY GOT YOUR BACK!
If you use MM and trade this system right, the only flaw that I can think of is having to face a trend reversal. (ie. the last trend reversal was in December of 2009).

So please experts. Teach me how to detect trend reversals.

If you can help improve this 90%+ system, let me know. Hopefully we can aim to make it 98% or even 99%. However, we will never make it to "Holy Grail" status at a 100% accuracy. lol

Take Care,

and God Bless

Aiming for profits like Warren Buffet and Jamie Dimon combined!



Special thanks goes to "Ronald Raygun" who gave contributed in this idea, also to "emtrader" who introduced me to properly using a "Slope Line indicator" and lastly, "Mr. Vegas" for his indicators and "TCMM" from canada. I've also received help along the way from a 14 year experienced trader/friend. Thank you all. Lets work together.

Great minds think alike.

Just to help future readers, could you have a quick bullet point summary of how you use the indicators and how you look at the chart in order. Ideally this can be cross-referenced to a screenshot with some comments on it

Thanks for sharing though, makes me happy you feelin good about tradin

For quick and simple overview: 4hr TF (Wed. - Fri).
Long:
Look on Daily Chart and weekly to see trend. (When 12 has crossed 80 on both TFs and showing blue)
1.Now look on 4hr TF and make sure (12period) slope cross (80 period) slope and showing blue.
2. ADX moving up ward and is above 20 level
3. RSI (14) above 50 level
4. Enter trade on 1hr chart for a more precise entry but use 4hr to trade.

Short:
Vice Versa.

Use support resistance levels. I prefer "center of gravity or Vegas 4 hr tunnel or vegas Daily depending on TF you want to trade with. Use one of these as your TP and I prefer using 100 pip SL to make sure I don't ever get stopped out.

Exit- When ADX has reached it's ceiling or RSI has changed color or RSI has crossed opposite 50 level or using your Support/ Resistance levels or using your TP. It's up to you.

Hint: E/U and G/U are on a longterm downtrend. So i'll be looking for short positions. You can attempt counter trend trades early in the weeks as well but I don't do it. When ADX is moving down, is usually the best time to enter a counter trend position with RSI confirming. But I like to play safe so I only trade with trend.

Hope this helped.

Hi BD,
thanks for your share this sys !!

I upload a pic, there we see the tradingwindows from wed - fri , its alpari GMT +1

BD in your first post you write ADX level 25 later 20, make me first confuse , but I see now you again write 20 , so thats the right level.

last 3 weeks we have 3 crosses every week one in the trading window.
at 12 feb, I not sure the cross for me is after the 04:00 candle , coz of the big short 08:00 candle , so this entry may late at this big candle , so it will be a loss?
second at 18 feb will be a good one , go first wrong ~ 70 pips , but then the right direction and tp at the center of gravity + ~130

last this week at 26 feb unfortunately the slope 80 not blue at the cross, so what we do? entry after the slope colour change at next candle or let the trade part and not chase?

thanks

have all a nice weekend
cheers

REPLY TO 4xpower:

I use 25 level on ADX because it's more conservative but 20 is fine also and more aggressive. Trade whenever ADX is heading upward and above the level. Whenever ADX starts to go in a downtrend, it means the market is either in a ranging motion or a counter trend. It's not advised to trade counter trends because you have no support when things go wrong. But if you trade with the trend, you will always have support when your position goes against you because it will eventually go back to the trend's direction. So be patient have "balls" aka courage.

Secondly, As long as both the 12 slope and 80 slope are the same color, you dont have to worry about a crossing. (sorry for not being specific on that). As long as both are the same color you can join the trade if RSI has confirmed the trade. And Never chase.


And my time is EST.


Take care,

Also, I made about 600 pips this month of february with this strategy. And lost about 150 -200 pips trying it on other pairs on my live account. I became over confident. So i suggest you stick to G/U and E/U.

This past week was a hectic week. There were about 5 or 6 speeches made by U.S officials. U.S Fed. Bernanke had 2 speeches, Miles, Bullard, and Obama all had speeches. There was a purpose there. The Euro was dropping to it's new lows and lower. These news events really pushed the prices back up but eventually the trend will bring it back down next week by Wed. But if you look on the 4hr chart on that day, you'll see that there wasnt much opportunity to take a trade and if you did, you would have made a very small profit. Because Obama's speech really help push that price really high. I was in a short position right before the speech and I was in profit zone. But the speech went against me. Usually when a news event comes out, and the price goes against you, it will end up going back to the trend's direction within an hour or 2 but this one did not. It continued to go up higher. It was an unusual situation. This is why no system is 100% accurate. Moments like that will arise. However, these moments are not too often so you will profit majority of the time with this system.

to 4x power:

I looked at my MT4 chart and ADX was below our level of 20 so it wouldnt be advised to join that trade anyways.

Hi,

BuffetDimon I have some questions / Comments.

1- You use ADX - Main - line. Why have you remove di- / di+ lines ?
I use ADX and like to get the main direction of bull / bears.

2- you use RSI : As you maybe know will RSI move from 40-80 during uptrend and 20-60 during downtrend. ( Those numbers are an avg.) So when you say RSI should me > 50 for long and < 50 for short I think you can jump on short with RSI > 50 if rest of indics are ok.

Well good luck with your system.

thanks BD for your copious answer.

and yes, you right at the cross at 26 feb the ADX under level 20, so no trade.

thanks again
cheers

good job, congratulations...

thanks for sharing with everyone...

Thanks for sharing, can you post the indicators and template on post1?

Cheers

(seykota Hi,

BuffetDimon I have some questions / Comments.

1- You use ADX - Main - line. Why have you remove di- / di+ lines ?
I use ADX and like to get the main direction of bull / bears.

2- you use RSI : As you maybe know will RSI move from 40-80 during uptrend and 20-60 during downtrend. ( Those numbers are an avg.) So when you say RSI should me > 50 for long and < 50 for short I think you can jump on short with RSI > 50 if rest of indics are ok.

Well good luck with your system.)



Seykota I didnt remove the d- and d+ that was 4xpower's template you saw earlier without the di and d+.




Jaula
Indicators and template
Thanks for sharing, can you post the indicators and template on post1?

Cheers




I posted template and indicators. I also added a "custom RSI" made by "TCMM". It show's colors. I tested it at level 55-45. It shows red above 55 Lastly, I added a "Hidden Stop Loss" indicator as a bonus. It is used to hide your SL from your broker if you want to use it. You can use it to trick your broker (the dishonest ones). They can move the prices with their systems to kick you out of your SL when the price comes near it.

Cheers mate.

Thank's man. How many pips do you average weekly? What's your biggest weekly loss? And, what's your biggest weekly gain?

Thank's again, this simple system seems really promising, looking foward to demo trade it. Any way 90% success rate is outstanding, I think you should keep it how it is.

I traded it this month on live account. I only had losses when I tried other currencies besides E/U and G/U because I was monitoring too many currencies at once. So I'm only sticking to E/U and G/U. the most I made was 250 pips in a week because my issue right now is knowing the optimal time to get out. I've had many trades during the month where I gave at least 50+ pips using trailing stops and not knowing whether to get out or not. So I'm going to try and trade from the appropriate time on Wed (after all GBP/EUR/USD news has been released and prices have gone back to it's orginal price and trend) and close it before london open around 4am EST on thursday morning. Then I'll reopen another position on thursday after all the relevant news has been released and wait for prices to go back to it's original trend and prices and close it before london open at around 4am EST on friday morning. Exiting is my only issue and it's good problem to have. Most traders have the issue of not making any profit at all. I don't like to always exit on resistance levels because I dont like taking many positions. The fewer the better. So 2 trades a week should be fine for me.
So i guess I'll have to loose some sleep 2 days a week to maximize profits. If i wait till 3am or 4am to close my positions. Ill just consider it as an night shift part time job. lol.
However, some people might just take one position from wed. and leave it til friday morning before london open to make sure they catch everything. But I like to be conservative. Some news releases are dangerous. Especially Speeches by significant people. Last week seemed planned. Bernanke had the same speech 2 days in a row. Why? Obama had a sneak speech same day and other U.S. significant people had speeches. Be careful with speeches and meetings those are the only news I would really watch out for because they can really really retrace the prices far enough to close a 200 pip stop loss position.

Hi BD,

Thanks for the system.
I was wondering about your downloads. They are completely different from your chart on post #1. The downloads have ADX 14 & 6, your chart shows 5.
The color RSI is 6, not the 14 you mentioned. The Vegas line colors are completely different with only 1 slope line. Have you made changes since post #1?
Thanks.

pipsacker

sorry i doing some tests on that chart you see. Ignore it. Or you can formulate your own if you want. But ignore it.

Thanks, but I am still confused. Even ignoring the chart, the downloaded indicators do not match the text in your post #1. Should the indicators be changed to match the text of the system in post #1?
Thanks, again.

pipsacker

No. Set your ADX to either 25 (conservative) or 20 (aggressive).
Set your RSI (14) to 50 level (aggressive) or 55-45 level (conservative).
Slope Line 14, 3 and 80, 3.
What u saw in the pic was a testing i was doing. Thats why the settings are different. Feel free to play around with it and back test it.

Thanks, BD.

pipsacker

Hey guys just wanted to give you a heads up. Last week, the bulls kicked in pretty early during thursday afternoon after Obama's speech. The price is now going back in trend direction (downtrend). So look for the setups early in the week. As long as everything is set to go, take a position on your demo accounts or live accounts. But go try your demo first to build confidence. Generically, the trend kicks in on wednesdays when volume is at its height and this is confirmed by the ADX. ADX on 4hr TF usually does not setup until wednesdays. But it seems to be setting up early this week. Learn to use that indicator. Become experts with it. It is a non lagging indicator. If you learn it well enough, you can even use it with the same strategy to scalp and trade longterm 4hr charts as well.
Cheers.