Rekon Xs and Market Scanner for Spot and Binary Options

The Skill and Will was always there but I was missing certain factors to increase my win rate, to save my equity, to act accordingly, understanding the present state of market correctly, considering which technicals are suits my trading style and which are not and most importantly closing my day in a profit even it is very small and exiting the market for the day.

I was fine tuning my method here.

Finally, my method produced a combination of systems which I call Rekon Xs and Market Scanner Combo! The Xs are the missing factors which I have included in the Rekon Xs template file and Market Scanner is a software I developed to help me extract out all the bad instruments for trading and only give me a safe list to trade for the hour.

This system has all potential to go far - furthest! The win rate for me is > 90% at the moment, however, it will ofcource vary person to person, so there is a way to how to measure your winrate for the day and how to take care of your win rate and grow it, I will explain more about it later.

Instruments: This is a 24 * 5 market for us, the intraday traders, so we need to be very careful about selecting the right instrument to trade at the right time, for example there is no point of trading Appel Stocks in Asian session, it can only be best traded in the US session.

Risk Table: It is already introduced in my journal, I will explain more about it later.

Maintaining Win Rate: It is already introduced in my journal, I will explain more about it later.

Excluding the Non-Performers: It is already introduced in my journal, I will explain more about it later.

Picking up the best Instruments: We will do that using Market Scanner Application.

Discussing the most popular 24 technical studies: Market Scanner considers 24 most popular technical studies to prepare the safe list for trading, will discuss more on this later.

Trade Videos: Will post the best tradable patterns for binary and spot in the videos series.

System: Rekon Xs template is available for demo on request via PM, Market Scanner is not free, all queries about Market scanner needs to be done via Private Message.

And lots more, please stay tuned.

Best Regards,
Rekon

Rekon Xs Trade Videos

Volume 1: This series is going to focus on the very basic set ups which appears time to time even the forex market is truly random. What we will do is, once we get signal from Market Scanner, we will start looking at these kind of set ups for the "Hot-Listed" Instruments.

For Binary, we will look for 30 Mins expiry and for Spot forex atleast 50 points profit on 5 digit broker.

Please note: This is only one hour strength of the instruments, so do not overdo trading, get the pips and exit from the market for the hour.

Suggession: You can turn on the auto scanning feature of Market scanner to 25 mins and do trading at a strech of 2 hours, however, I would suggest our mission is to close the day in profit, so as soon as you are in profit - you exit and that should be the only vision here. We are not here to challange any individual or the market, just want to take my profit and exit the day so that we can come back again on next day.

Trade Set Up Videos:

Daily: Binary Call and Put set up on Daily Candle

M15: How a Dark Cloud Pattern appears and you can trade it

M15: Trading a Range Bound Market

M30: Trading With RekonXs: Put Option for 30 Mins with Fractal, EMA220 and Verified Resistance on M30

M30: Trading With RekonXs: Call Option for 30 Mins with Geometric Mean, EMA8, EMA220, Volume, Rsxs, RMACD and RCCI, Verified Resistance turns Support on M30

Rekon Xs Risk Table

This is specially for BinaryOptions, Why I choose Binary Options is simply because I know if I able to read the technicals correctly I will be winner, in case I fail the Risk table will recover my equity.

But, before using Risk Table, I must have consistent Win rate, otherwise it has no use. I will talk about Win rate later, so I see this a different game for Part-timers and full-timers. Full timers can take more risk based on their win rate and can exponentially grow their equity, whereas a part-timer must know his limitation and restrict himself from taking unnecessary risks like overtrading, risking bundle of moneys on a single trade etc. more on that he must exit the market for the day --

A. If he is early winner for the day, should not come back again to the market
B. If he lost 3 trades at a row.

Suggession: A Part timer must not gamble with the market, must be very careful on his win rate, so instead of multiple entries he should care about winning single position.



2014 Feb Risk Table

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Rekon Xs WinRate

Our overall Win Rate decides how much risk we should take. Even the professional gamblers only put his all money when he sure about the odd and he knows about his win rate ratio, if anything bad happens after that then we can atleast tell ourselves that we lost even we did all the right things and thats a bad luck, can not do anything just except the fact that you have tried based upon best possible information you had at that time. Then we need to further engage ourselves for the cause and if we able to find, we will also consider that fact from next time onwards.

Here is a sample form, which helps to maintain our win rate ratio on daily basis, continuing this practice is very helpful particularly for which instrument we should trade more which we should not etc.

Rekon Xs NonPerformers

As we need to track our win rate on daily basis, similarly we need to keep monitoring the instruments which are performing good with your existing strategy whatever it is, before you consider approaching for any new method you should test it atleast 3 months and you will get a group of high performers and non-performers.

On your live account, you simply go with the high performers and avoid the non-performers, this simple trick will boost your win rate for sure.

Rekon Xs Technicals

Will now discuss about the Rekon Xs trading template components. These technicals works combinely to create a tradable set up. Once we receive signal from the Market Scanner, we try to look out for the confirmation received by the technicals. We only trade the pattern we able to recognise.

Credit: All the technicals / components in the chart are based upon old studies of technical, nothing new only I have tried optimizing certain settings thats all, so Credit goes to the great people such as J. Welles Wilder, George C. Lane, Tushard Chande and Stanley Kroll, Gerald Appel , Larry Williams, Donald Lambert, Dr Alexander Elder.

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1. Moving Averages: 220 EMA on Close, 800 SMMA on Close, 8 EMA (Trigger) on Close.

If I remove almost of all other technicals except filters, we will see 220 and 800 together indicates a strong trend, and 8 is the short term direction. So trades will be based on direction of 8.

1 A. Now, we will get with trend entries which are more safe, when 8 agrees with 200 and 800. But then how do you time the trades? For that you need to look out the other 4 windows/filters.

1. Volume: Watch for a volume spike first, after that you need to look out for entry.
2. Filters 1 (Rekon Xs - RSX),2 (RCCI), 3 (RMACD) must agree the same trade direction

1 B. When 220 and 800 are close together, we see a ranging market, the more ranging continues the more possibility increases for a strong break out.

1 C. RMACD: Must not be considered as reversal sign, it prompts early for possible trend change, but in a strong trend it will keep on creating hidden divergences for each short term price retracements. Therefore, only its cross up or cross down should be considered as signal of possible change of trend direcion.

Rekon Xs Trade Timing

My trading time is Indian Standard Time. I find the following timings are good for trading and I will be following these timings for lifelong and will not consider trading in other times.

In case I am already a winner trading in Time A, I will consider calling it a day and will not trade in the same account, in case I am managing multiple accounts I will also consider trading the Time B but will not trade on the winning account.

A. 12:30 PM to 3:30 PM
B. 7:30 PM to 10:30 PM

Rekon Xs : Market Scanner related questions

The Market Scanner is now publicly released, its first release date was 29-Jan-2014. I would request to all who have received the copy of the software, please join and share their experience. Any problem, thoughts, improvement, questions, strategies of how to use the software more effectively, kindly share it for all.

Rekon Xs : Template related questions

I would request to all, who are presently trying RekonXs template, please share your experience, questions, thoughts here. I am still progressing on compiling all the strategies. It will take some more time for me, in the mean time you can also start throwing your questions, I will answer them here. Thanks.

Rekon Xs : Important Updates and General Announcements

(This space is reserved)

Rekon Xs : Price Action Patterns

Bearish Signals

SS 2,3,4 - Shooting Star
E_Star - Evening Star
E_Doji - Evening Doji Star
DCC - Dark Cloud Pattern
S_E - Bearish Engulfing Pattern


Bullish Signals

HMR 2,3,4 - Bullish Hammer
M_Star - Morning Star
M_Doji - Morning Doji Star
P_L - Piercing Line Pattern
L_E - Bullish Engulfing Pattern

Rekon Xs Technicals (..contd.) # 2

So, to identify the major trend we will first have the MA direction. Then we will confirm the direction by the filters (Rsxs, RCCI, RMACD)

The order of looking at the price will be

A. MAs direction
B. RCCI is Red and crossing down
C. Rsxs are down
D. RMACD crossing down

We will search for entry when there is a volume spike or recent Volume spike.

A. With Volume spike, price was up, in next candles volume is decreasing but price is continuing up = Buy
B. With Volume spike, price was Down, in next candles volume is decreasing but price is continuing down = Sell

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Trending or Ranging Market?

RekonX template is designed to reflect the market's present state that is "Trending" or "Ranging" ?

Go for "With Trend Entry"

A. Market is trending
B. Market is Ranging, Price hit the upper bound of the Range (Sell Market)

Go for "Counter Trend Entry"

Market is Ranging, Price hit the lower bound of the Range (Sell Market)

Rekon Xs Technicals (..contd. # 3)

Support / Resistance Levels: When the market is trending and it is a strong selling market, we will notice price consolidates on the support levels and generally a strong trend breaks the support levels and they turns resistance level.

Binary Entries (Sell Market): Once candle closed below the support level and next candle opening is under the support level we will take "Put" Option.

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Rekon Xs Technicals (..contd. # 4)

Fib Levels: For Binary Option we will do counter entry on 61.8 level, which will be basically a with-trend entry for the main trend. Other important levels are 78.6 and 23.6.

Rekon Xs Technicals (..contd. # 5)

Geometric Mean Levels and Pivots: These all are basically averages which we need to be careful, specially for binary options because price has a tendency to come back these levels. When price touches these levels always a "with trend" entry has a higher success rate than "Counter entry"

Rekon Xs Technicals (..contd. # 6)

Signals: Rekon Xs template, I call it a signal factory, which combines price actions, reversal and divergences alert, but until you are expert on (Technicals 1 to 5) you will find difficulty acting on the correct signal.

For Spot this will still work good but for Binary on forex you really need to understand the signals.

Back Testing is very important and you will need a simulator for this.

Simulator: http://www.mt4i.com/appstore/app.aspx?id=22

Attached Image (click to enlarge)

Rekon Xs Technicals (..contd. # 7)

Important Signals which we need to monitor and act upon are,

* Fractal Reversal
* Bullish Pinbar
* Bearish Pinbar
* Dark Cloud Cover
* Bullish Engulf
* Bearish Engulf
* Swing Up
* Swing Down

Rekon Xs Technicals (..contd. # 8)

Summary

A. There must be a recent Volume Spike
B. Monitor the relation between volume and price
C. Check the Market State "Trending" or "Ranging"
D. Mostly try for "With Trend Entry"
E. Signals will be on your screen, act accordingly.

Market Scanner Design Architecture

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Market Scanner System Specifications and some more Insight

System Requirement

OS: Windows XP Service Pack 3 and Higher, Preferable Windows 7 and above
RAM: Atleast 2 GB
CPU: Core i3 and above is better (if Intel); 2GHz and above is good
OFFICE EXCEL 2007: A full version of Microsoft Office Excel 2007 is require

Internet

High Speed Internet is require for faster scan

Technical FACTs

1. You do not need MT4 to Open for running this App, It runs on its own 24*7 including Sat and Sun days.
2. The Data feed it takes from a very reliable broker, there is a chance of slight difference in data which it takes and what your broker offers, however, it is very merginal and negligible.
3. It gives you total 22 technical studies which includes RSI, CCI, STOCH, STOCHRSI, MA, WILLIAM %, BULL/BEAR Power, ROC, Ultimate Oscilator, High/Low, ATR, ADX and MACD.
4. Fib Levels: 3 Support levels, 3 Resistance Levels and Pivot Price for the Hour is available in the App and dynamically it changes if price creates a new High/Low.
5. Indicators: It gives 4 states of Price by studying the each technical, so you will get green for buy, red for sell, yellow for over bought/over sold and white for nutral.