Davit's BB Wave System

Disclaimer
Trading is risky and you are responsible for losses and gains.

Hi Guys
Decided to share how I trade.Few things about me.I was a degenerate sport gambler for 5years betting from collage hoops,football,baseball mostly.I would be up one week in thousands and be down next week in thousands.Had no real understanding of % wagered vs account size until I lost all my money.Stopped completely.As faith would have it I somehow end up trading forex.Made all the rookie mistakes blown few accounts and my 3rd year finally started to make money.
Before I continue I like to emphasize knowledge and experience are important.Reading trading books helps on weak areas specially on psychology subjects like unable to take a small loss and letting it to become massive loss,unable to let profits run,moving stops etc.This is critical because without work on one's self no system irregardless of profitability will make you money because you are dealing with not just the market but your own demons

Some books worth reading
1.All Market Wizards books by JACK D. SCHWAGER (This is to open your eyes what is possible in Trading)
2.REMINISCENCES OF A STOCK OPERATOR (Read it twice 2nd time got lot more out of it)
3.Harmonic Trader by Scott Carney (anything by him)
4.Bird watching in Lion Country by Dirk du Toit (implemented lots of ideas from him)
5.Trading in the Zone (classic on psychology of trading)
6.Van Tharp - Super Trader (Even if you absorb 20% of the book you’ll improve by huge margin)
7.A.J. Frost, Robert Prechter - Elliott Wave Theory (must read)

System
Indicators


System details
Most know me as classic counter trader and I did well with it however not taking obvious trades going with the trend was a handicap in my view hence I designed 2 system in 1 Trend following and CT

1st Part Trend following
This part is based on Raghee Horner's 34 EMA (she has ton of videos on youtube for further knowledge)
Simply brilliant concept.Why 34? Well it works best in my view and Raghee's and its a Fib number.
Trades are taken when PA is above Wave green color candles and below wave red candles,blue candles are neutral best not trade.
1hr 4hr and daily must be in sink

2nd Part Counter trade daily chart
PA inside 2nd 3rd Deviation
RSI 70/30 and above WR% above -20 below-80 These are exhaustion levels
We will wait for RSI and WR% to hook opposite direction before entering CT trade H4 Daily.
This is to assure trend/swing is reversing.This is important since BB and Oscillators can remain OB/OS prolong period of time.
When trading with the trend be mindful BB levels for exit the trades
1st TP BB middle level 2nd TP should PA go in your way further other side of BB 2nd 3rd dev

Your chart should look like this

Questions I get a lot
1.RSI WR% Stoch etc can stay OB OS on prolonged period of time.
True and this is why following fundamentals are important news releases etc.I have uploaded news indi that always keeps you informed.
Keep in mind no system is loss free.I judge healthy system by series of trades not just few dozen.

2. BB can over stretch on strong trend
True and that is why system1 allows trend following
3.Stop loss
Up to you I trade without hard stop but do have one.Be mindful 20-30 SL will get hit on spikes and this is how brokers make their money.

My average profit target is 50-100pips
Example of CT trade that even though its inside BB zone but RSI WR% don't agree NOT good to go long

See the difference on my 1st chart where RSI and WR% clearly hooking down

One of the aspects of this system I like is reading the trend correctly.
When trend is healthy it respects 50 level on RSI and WR% and by seeing this one can confidently get in.
Notice Wave angle, notice how price bounces off 34EMA
I am using WR% how creator Larry Williams uses it.

Worth watching

Great system and already subscribed!

Nice to see another good system in FF, Thank you for sharing ! Keep it up

Roman thanks for dropping by.Feel free to contribute whatever you like

Thanks Dashisiong.This has been evolutionary process for me but things are coming all together.
Robust system which allows trend following and Counter trading

Lot of veteran traders know that I like Harmonics as well.
Why is this important? Because Greed and Fear dominate every market and certain patterns repeat.

Lets take U/JPY for example
Harmonic pattern
Now overlaying my template
Notice D point is inside BB zone exhaustion level.It just more confluence.Harmonics are not necessary to trade my system but knowledge of Elliot Wave and Harmonics is very useful and that's why I posted best books on these subjects.

Example of recent beautiful drop
I have repeatedly sold G/CHF last month every time it got into BB zone with 100% winners over 12 orders.
Looks like this is not getting too much attention here.It could be a good thing.I don't have lots of color boxes and don't think one needs them to see what the trend is doing.In my view simplicity of the system is its strength.

Hi Davit!
Nice thread!
Could you upload the .ex4 indicators (# Post 1) also in mq4, please?
Best regards from Switzerland.
FXcube

Hi Cube thanks for checking it out
the news indi and ADR only ex4 file
Rest

Very cool custom fib indicator levels in color and you can hide or allow additional levels or change colors you like
How to use
Use Meta default trendline and draw a line point A to B
Right click on it
Change title to Fib1 for regular fib and fibe1 for extension.Notice extension has e.Refresh by clicking different TF and you are done.
My template already has this indi included just drop the indicators in right folder.
Example

Hi Davit,

Very nice thread! About your counter trend trades, how do you handle it when price continues to trend and your DD is rising. You keep adding positions or get out with a loss? Because not always by the hooking of the rsi/wr the retracement will be big enough and the trend will continue..

Its a good question.
Example I am shorting UJ close to 103 based on my harmonics, fundamentals and my system.I will not close the trades as loss since I know USD strength is not there to push higher but I also have small red trades on UC and that I may close as small loss.
CT trades are those who have lot more experience I suggest you focus going with the trend if sufficiently not experienced..

Some trading thoughts
My system has tremendous odds in your favor but there will be some losses as well.(no such thing as zero loss system)
Results should be judged over series of trades.I measure my success quarterly just like business and so far I am up close to 60% for the year and shooting for over 100.

What is beautiful about this system is you open any pair on daily chart and you get all the information about trend strength (degree of trend slope) red,green,blue candles above below 34EMA RSI WR% levels in quick glance you have a solid understanding where price is.This is hard to do with naked chart.

In my view and chart 1st stop EU is 35 once price gets there I will watch the behavior if it wants to go further up or continue downtrend
Euro is clearly depreciated substantially hence I am in frame of mind corrections are in order.
I am already long on EU through shorting U/CHF

hi David,

looks very interesting and thanks for sharing in any case...

How long are u tested this system if i may?

Keep up the good job

Venceremos

Hi Spinoza
CT BB part over 3 months over 300trades 78% winning average.Trend following is new and works great in conjunction with CT system
regards

I like to screen so many currency pairs within a couple of minutes at Daily, Weekly & Monthly, and later at H4, H1, M30.
Excellent!
Marvellous!
FXcube

Current live trades
AU long on 4 positions
UC short 6 positions
U/CHF short 8 positions
UJ short 6 positions

Out of all the trades UC shorts are weakest and watching that.

Thanks Cube
I am a visual person candle colors, wave with BB lays everything clear what to do or what not to do.

Here is an analyses on EA
Daily chart.
1 Price is neutral blue candles inside WAVE (no trades recommended)
2.RSI WR% above 50 sharp slope up meaning likelihood of PA going higher is good.
3.PA is not in extreme Dev zone

That took me 2min to decide NO trades worth taking