Hello! Over the times I saw lot's of "systems" appearing over the forum, some were actually good, giving nice profits for those who knew how to trade them, some weren't that good.
A few were actually systems, with concise rules and money management integrated, some were just a description of a group of conditions on a couple of indicators that by themselves do not constitute a system, at least in my interpretation of the term.
The idea behind this thread is to develop a concise system, with no space for emotions or interpretation, a plan that just has to be executed. Many will certainly disagree and tell me that it is not possible, as the market keeps changing. This is indeed a fact, but it certainly keeps having regular patterns that can be predicted in order to achieve profits.
In this section of the forum there are systems that take advantage of a huge set of those patterns, breakouts, trendlines, divergences, etc...
A particular one got me thinking. It takes advantage of small retraces of between 10 and 25 pips, as it is rare for the euro to move 215 pips without some small retrace.
Some time ago, I've created a thread on the programming discussion section. But the terms "Grid" and "Martingale" probably scared all the possible attention.
The idea was to test a set of conditions to make a study on risk.
I've been trading that idea since, with good results.
It is in fact a MartingaleGrid type of trading but it does not have the risk of a "0" trade where it blows your account away. I didn't wanted to develop a "money maker", or solo system for a account.
Let's assume we have a starting capital of 1000 EUR.
This should be the minimum account size for this "system".
But first, the rules:
1minute timeframe
Trading starts at 00.00 GMT+2
We're grid trading here, using a grid of 10 pips, and a 2 periods simple moving average that acts as a filter.
After 00.00 gmt+2 we wait for the moving average to cross the grid, at the candle close a order should be open in the direction of the cross.
(charts 1 and 2 have examples of a buy and a sell)
After a signal is taken, all the other crosses should be ignored and we wait for the trade to hit tp or sl. Stoplosses and takeprofit levels at 11.8 pips (10 plus spread, assuming a spread of 1.8 pips)
If the MA in the candle that hits one of those levels makes a new cross on the grid, then at the close of that candle, another trade in the direction of the cross. If the MA crosses one or two, or whatever candles before the last trade sl or tp is hit no signal will be taken. If it crosses in the next candle after the hit of a tp or sl, then a new trade on that direction.
(Chart 3 and 4 have examples of the two cases)
----------
Now the Martingale stuff, and since I know how the term "Martingale" scares people away, from now on I will call it something cool, like "The ninja stuff".
So here it goes "The ninja stuff":
After you have a loss you will double your lot size
The idea with this "system" is to have lots of trades and profit from all of them until you loose a maximum of 3% of you equity per day.
So if you have a balance of 1000 EUR, and you're trading at 0.01 lot per trade, you're risking 0,07% of your balance on each trade. If you established a maximum risk of 3% per trade you will get over four consecutive losses and you will risk 2,17% of your account in order to cover all previous losses and still get profit.
With the grow of you account you will get over more consecutive losses, obviously. This assuming you don't rise your lot size. This is why I didn't wanted this to be a "solo system", but instead, a consistent profit making system with small lots.
By trading this way you can have something like 50 trades per day.
I will give some results over the last week after the example charts.
A few were actually systems, with concise rules and money management integrated, some were just a description of a group of conditions on a couple of indicators that by themselves do not constitute a system, at least in my interpretation of the term.
The idea behind this thread is to develop a concise system, with no space for emotions or interpretation, a plan that just has to be executed. Many will certainly disagree and tell me that it is not possible, as the market keeps changing. This is indeed a fact, but it certainly keeps having regular patterns that can be predicted in order to achieve profits.
In this section of the forum there are systems that take advantage of a huge set of those patterns, breakouts, trendlines, divergences, etc...
A particular one got me thinking. It takes advantage of small retraces of between 10 and 25 pips, as it is rare for the euro to move 215 pips without some small retrace.
Some time ago, I've created a thread on the programming discussion section. But the terms "Grid" and "Martingale" probably scared all the possible attention.
The idea was to test a set of conditions to make a study on risk.
I've been trading that idea since, with good results.
It is in fact a MartingaleGrid type of trading but it does not have the risk of a "0" trade where it blows your account away. I didn't wanted to develop a "money maker", or solo system for a account.
Let's assume we have a starting capital of 1000 EUR.
This should be the minimum account size for this "system".
But first, the rules:
1minute timeframe
Trading starts at 00.00 GMT+2
We're grid trading here, using a grid of 10 pips, and a 2 periods simple moving average that acts as a filter.
After 00.00 gmt+2 we wait for the moving average to cross the grid, at the candle close a order should be open in the direction of the cross.
(charts 1 and 2 have examples of a buy and a sell)
After a signal is taken, all the other crosses should be ignored and we wait for the trade to hit tp or sl. Stoplosses and takeprofit levels at 11.8 pips (10 plus spread, assuming a spread of 1.8 pips)
If the MA in the candle that hits one of those levels makes a new cross on the grid, then at the close of that candle, another trade in the direction of the cross. If the MA crosses one or two, or whatever candles before the last trade sl or tp is hit no signal will be taken. If it crosses in the next candle after the hit of a tp or sl, then a new trade on that direction.
(Chart 3 and 4 have examples of the two cases)
----------
Now the Martingale stuff, and since I know how the term "Martingale" scares people away, from now on I will call it something cool, like "The ninja stuff".
So here it goes "The ninja stuff":
After you have a loss you will double your lot size
The idea with this "system" is to have lots of trades and profit from all of them until you loose a maximum of 3% of you equity per day.
So if you have a balance of 1000 EUR, and you're trading at 0.01 lot per trade, you're risking 0,07% of your balance on each trade. If you established a maximum risk of 3% per trade you will get over four consecutive losses and you will risk 2,17% of your account in order to cover all previous losses and still get profit.
With the grow of you account you will get over more consecutive losses, obviously. This assuming you don't rise your lot size. This is why I didn't wanted this to be a "solo system", but instead, a consistent profit making system with small lots.
By trading this way you can have something like 50 trades per day.
I will give some results over the last week after the example charts.
Attached File(s)
