The strategy has a new update ... 09-30-2011....for those who had already read this post, please reread the setup !!!
Sorry for changed again, but is for better !!!
The most inportant thing in trade, is to find the best entry, thats why the new update....hard work to get this better !!!
Hello everybody, my name is Frederico, and would like to share my strategy with you. Please only post if it is something really constructive. If you do not understand what is written here, do your research. Despite being a simple strategy ... we all know how a post can lose real value after many unanswered good sense .... so let's go .... please read the whole post, it's more important to understand the whys than just the strategy .....
The setup:
Entry:
- Any pair
- RENKO Blocks of 5 pips ....- 50 SMMA , this is a great support MA, so, wait for a trend to be formed, see the trend, wait for bricks touch the MA...then...
- 4 - 7 - MA smoothed , entrys when they cross and the 4 smma close above/below .
- MACD must to be crossing the middle line...
- SL when a brick close fully above/below ( not half brick, full ) 50 SSMA. braek even when hit 30/40 pips.
- Exit: TP in the break of a trend line, or when the MACD cross or when the price cross fully above/below 7 smma's.
- And of course, to improve entries: WAIT for good price action and break trend lines formations (no need to explain why).
- And now the key to the strategy, COMPOUNDING. You will always use the same capital of previous trade ... Example: If you started your first trade with $100, and TP was reached, let's say 50 pips,you will be with $125, on your next trade you come in with these $125, if SL was been hit in 20 pips you will be with $113, and the next TP is reached in 40 pips you will be there with $135, and so on (not counting the spreads). So don't take trades if the SL is to high, more then 50....probably will be a bad trade.
After much work and study I improve this strategy in a short time, then don't ask for statistics (yet). The manual backtest was extremely profitable, despite the RENKO that you can not go very far in history. I'll post the results as they come ...
The explanation ... ..
... The difference in the Renko chart is that you can control the size of the "volume" that appears on your screen, because when you enter the size of the brick will automatically be seeing the "volume", so the size of the brick 5 pips. 5 pips as you do not waste your time with small fluctuations of the market, and can better see the ACTION. Anyone who has seen a Renko know what I mean .... ... feel and learn Renko ...!
.... The MA's .... well, I believe that 99% of people have used an MA cross, and know how much they are simple and powerful. In any chart and any TF they give the direction of the trend, and they only fail when the market is in range, and that's when Renko chart comes in. Using the brick 5 pips you can eliminate much of the range, not all, but with a good PA comprehension is more "easy" to filter only the best entries, and they will be much higher that the bad ones.
.... And most important of all, compounding .... have you ever wondered, that with just 15 times that doubling your money with just $100 you would have $3,276,800 , well, this is the power of compounding. I tried to apply this concept along with a good money management, and a high probability strategy.
I feel great to be here sharing what I learned and what would be the conclusion of this process..... so far ..... for those who have something constructive to add, I'm here....
This image is exemple of how the chart must look like, and 2 great setups....
