Zero Net Loss Trading Strategies

Good-day All,
Please not that this tread is not meant for traders not open to new Ideas or traders that think that they are better than every other person.The trading system is not a must for all trader.
DISTRACTIONS AND DISTRACTERS ARE NOT WANTED ON THIS TREAD.

Please Ensure you Comply with the Following Rules when you Visit This Tread!!!

1. If you have no Positive comment or contribution, please leave the tread without any comment on it.
2. Negative Criticisms are no longer Permitted on this tread.
3. If you feel you know better than everyone, please go ahead and start your own tread.
4. If you know you have an holy grail, Please leave the tread and start your holy grail tread.
5. Insultive words and statements are no longer permitted on this tread.If you are tempted to insult anyone, for you own good do not and leave the tread.
6. Arguments and quarrels are not permitted on this tread.Work with proofs and not arguments.
7. No commercials on the tread.

The Tread is meant to make the strategy better and it is meant for the open minded and those that are ready to think outside the box.The tread must make the zero netloss system better!

ALL PLEASE COMPLY

After Reading the Introduction to the strategy below,Please go to page 10 for the full details on Lesson 1-6.

THE STRATEGY

I want everyone to contribute to this tread and come up with more strategies, because I discovered that some of the theories we were taught in forex are close to not true in real market situation.
PLEASE NOTE THAT WISE MEN DON'T LOSS MONEY IN FOREX


Zero Net Loss Trading Strategy
Based on the Following Assumptions:

1.The market is actually 80% trending and 20% ranging on long and short term.(Oluwadare)
2.Every trade on a timeframe must be supported by the lower and higher timeframe to it.
3.Give great respect to support and resistance, and brakeouts.
4.Never use STOPLOSS on any trade.Rather,Use Pending orders in opposite direction of the trade.eg.Buy 1lot and Sellstop 2lots, viceversal.
5.Give respect to trend size and ranging market on any timeframe.
6.Every ranging market has a brakeout.
7.Follow your simple indicators.eg. Ema(3,10,20),Macd(3,10,16),Parabolic (0.1,0.1),Stoch(10,3,3),Grid indicator,Demark Trendline.
8.Risk 1% on every 20% of equity per trade.
9.Take profit per Trend size of the timeframe or use ratio 1:1,1:1.5 or exit with the use of indicators.
10.Don't forget that every trade has a probability 0.2 to be successful, and it is your duty to turn the remaining 0.8 to a successful trades(using the zero net loss strategy)

THE KEY REASONS WHY MANY LOSS MONEY ARE THE KEY REASONS WHY YOU MUST NOT LOSS MONEY AGAIN!!!!!!!!!

THE KEY REASONS ARE:
1. " TRADERS LOSS MONEY BECAUSE THEY ENTER INTO A RANGING MARKET OR OPPOSITE OF A REVERSAL TREND."(Oluwadare)
2. "A RANGING MARKET IN A PARTICULAR TIMEFRAME IS A SLEEPING MARKET OR NON-DIRECTIONAL MARKET ON THE HIGHER TIMEFRAME(AWAITING A BRAKEOUT), AND IT IS A TRENDING MARKET IN A LOWER TIMEFRAME TO IT."(Oluwadare). For example, A ranging market on Daily chart is a sleeping or non-directional movement on weekly chart which is awaiting brake-out, and on lower timeframe of 4hrs it is a trending market.

THE METHODOLOGY
1. When you enter a trade with say 1lot buy, set a sellstop 2lot at the support point before it(lets assume we have 100pips inbetween as our 1% risk). If the maket goes against you and it is a trend in opposite direction, you need over 200pips to be in profit, if it is a ranging market and the sell reverses,close your 1lot buy and open 2lot buy at the same price using pending orders to hedge it out(if it continues to range-you make money using subtrades on lower timeframe).
Note that by the time we are hedging out at buy 2lots and sell 2lots with 200pips in a loss,and we must have made profit on 4hrs chart twice with more than 100pips.We will make more money if the market is still ranging or if there is a brake-out to achieve our zero net loss or to make the trade profitable.

2. WHEN TRAPED IN A RANGING MARKET OR OPPOSITE TREND
A.When the price reverse against you or you fall into a ranging market. what to do is SIMPLE.
Go to the lower timeframe and trade the opposite direction using the same lot. If it is trending you make more money. If it is ranging, close the profitable trade and trade using the same lot to trade every opposite signal within the range.

Note: For example if you enter a buy 1lot on daily chart and you set pending order sellstop 2lots 100pips away, and the trade reverse against you, you go to 4hrs chart to trade the reversal signals.

B.For every reversal signal you trade on lower timeframe:
I.For example a sell(using the above example), you sell 1lot, and set pending order buystop 2lots 50 pips away(50% or original pip difference) which must be outside the range or higher than the price at which you bought on the original trade.viceversal.

II. IF IT IS A RANGING MAKET- As you make money from the subtrades on 4hrs,also go to Weekly chart and set a pending order of 1lot(same lot as initial trade) either for buy or sell for a brake out and set your stop order 2lots in opposite direction.

Note that the strategy above is applicable to any timeframe as far as you can rally on 3 timeframes.

MY DEAR IF YOU GO THIS WAY ON EACH WRONG TRADE, YOU WILL END WITH A NET PROFIT.

If you are visiting the tread for the first time, Please go to Page 10 to get full details of the strategy from lesson 1-6.

Successful Trading
Oluwadare

This sounds similar to 100% Win Math Grid EA.

The central 'weakness' would be that you may be put into a position
of trying to open more orders than you have available margin.
(It is a different version of a 'martingale' idea.)

Hanover's posts are quite good within (as always).
http://www.forexfactory.com/showthread.php?t=109589

I can see your logic with differing time frames.

Can you give an example with a diagram ?

Also agree with Intu, you may need to make your lots smaller
to survive the number of trades being placed.

Thank you for your comment. That is why you have to risk 1% on every 20% or your equity according to the post. The truth is that you cannot exhaust 10% or your equity before you turn profitable.

hi Oluwadare,
I am new to this forum but your strategy sounds logic and consistent to me. one question: why do you not suggest to have Stop Loss?

wish you good trading..

If you buy 1lot, you sell 2lots where you ought to place your stop loss. Please praticalise the theory on demo for 1 to 2weeks. Your eyes will OPEN WIDE WHEN YOU DISCOVER THAT YOU CAN TURN LOSS TRADES TO PROFITABLE ONES WITHOUT HASSLES.THE MARKET IS 100% PREDICTABLE.

Can you post some charts?

1.The market is actually 80% trending and 20% ranging on long and short term.(Oluwadare)

All markets move in swings around 80% of the time
Markets do trend around 20% of the time, learn to differentiate between swing trading and trend trading.

2.Every trade on a timeframe must be supported by the lower and higher timeframe to it.

A trend trade must be supported by the higher timeframe use the lower timeframe for a better entry.


3.Give great respect to support and resistance, and brakeouts.

Breakouts are great for entering new trends and confirming continuations.
Support and resistances are not respected during a trend as price often gaps away.

4.Never use STOPLOSS on any trade.

Always use a stop loss, you can not be right all of the time.

5.Give respect to trend size and ranging market.

No idea what you mean by trend size, of course stay out of a ranging market asssuming you are proficient at identifying one that is trending and
not just swinging.

6.Every ranging market has a brakeout.

A ranging market remains a ranging market until it turns into a trending market.


7.Follow your simple indicators.eg. Ema(3,10,20), Macd(3,10,16),Parabolic(0.1,0.1)

Keep it simple, thats the way to go.

8.Risk 1% on every 20% of equity per trade.

Good money management is essential

9.Take profit per Trend size of the timeframe or use ratio 1:1,1:1.5 or exit with the use of indicators.

If you have correctly identified and entered a trend at the start stay with it until you have a reason to not to.



pipfarm

Good-day Pipfarm,
Your argumentative comments are not required on this tread. SO, I SUGGEST YOU STAY CLEAR OF THIS TREAD.

Also note that you can only condemn a system if you have tested it for atleast 3months without it working. Those forex theories you believe are the reasons why traders loss their money because they were propounded for you to loss your money.

Thank you.

I think pipfarm's comments were productive and helpful, you're clearly not out to make friends here are you?

As you seem to prefer direct talking, that's complete rubbish. If the markets were 100% predictable we would all be billionaires.

I trade with a version of grid trading, and I find it very profitable. But it's not the holy grail. Just because you sell 2 lots when the first lot has hit the stop loss doesn't guarantee that the 2 lots will win. It means that sometimes you will have a 1 lot win, and sometimes a 3 lot loss.

Unless you propose to open 4 lots at this point of course, but then we're in Martingale territory, and to my knowledge nobody has made any Martingale strategy work in the long-term in the forex markets

But good luck!

You are completely right, you cant see what I am seeing because you never took your time to examine the system.The market is predictable in the sense that you can tell if it is trending or ranging using the system.

The Problem here is that many forex traders have allowed all those deceitful forex theories to clog their minds.

Thank you.

Hi Oluwadare,

I think you made some very bold comments hence the comments that followed up. I personally feel anything is possible. I would recommend that in order to validate your strategy, give them proof. Nothing is better than proof right? Here at Forex Factory, under your profile, there's an option to add any MT4 brokers information (i.e. like myfxbook) - called TRADE EXPLORER. I would suggest in having a DEMO account and not LIVE Account to mimick your trades. I personally would not put a LIVE account because I am security conscious, but I will replicate trades. This option is more credible than a MyFxbook because it uses the broker's data directly and nothing can be manipulated like myfxbook (i.e. changing out the HTML files to upload etc).

Good Luck Oluwadare, I look forward to your system and results on Trade Explorer.

many thanks for responding. could you pls post some of your charts here from your demo?

I am starting to see it. Still a little fuzzy on what to do when the first hedge doesn't work out but instead reverses.
Under a worst case scenario, what is the maximum number of trades that will be open at one time?

Thanks.

Still on vacation and the system is still profitable. 25% last month. Kindly leave ur comment and additions.

andy can you direct the link on the grid trading. i am new and do not know what is grid trading?

olu can you show some example with chart?

1. If I have correctly understood, we are discussing a trading strategy that suggests a trader remains in a losing trade until it becomes at least Break Even (i.e zero net loss).

2. I agree with most part and various components of the original post, but have strong reservations on doubling the position size in the opposite direction if a trade shows loss to the point where a stop loss would have been.

3. A range trader, should not stand in the way of a developing trend. This is off limits to his/her play ground.

4. A trend trader may either take several chances with very good r/r to capture a trend OR use wider stoplosses that survive the range (or movements) before a breakout in his/her favor.

5. Market can suddenly develop a strong trend against a trader's positon (no matter if its a range trader or trend trader), and no certaintly about the continuation or reversal of this breakout. In this scenario not taking a loss and not stepping on the sidelines is far from being prudent.

Therefore, efforts to develop a Zero Net Loss Trading Strategy is beyond logic.

Ya..ya...ya...

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Did I say anything worng? Please feel free in correcting me.