2 levels trading without any indicators

This 2 levels trading is suitable for any account size and involves any 2 levels that you choose for a trade.

Ex: Eur-Usd at current price 1.2600
1. buy order of 0.1 at 1.2600 with tp 15 pip no sl
If price goes lower we open sell 0.2 at 10 pip lower*(1.2590) with tp 1.2575 and sl for buy at same lvl.
If price reaches 1.2575 than we get.
Buy= 0.1 x 25
Profit 5 pip
Sell =0.2x 15

If price retraces before 1.2575 than we wait for retest of prev buy where we will open another buy of 0.3, set tp for both buy 15 pip above and sl for sell at the same lvl.
If price reaches 1.2615 than we have.
buy= 0.40 x 15
Profit 10 pip
sell= 0.20 x 25

Every time the price hits a level we will increase the order with 0.1 until one of the tp are hit, and we cancel the opposite tp every time to avoid spikes in the opposite direction straight after opening one order.

Things that you need to perform this .
1. Spread for that currency as low as possible/ if possible 0 because tp and sl are taken at differite lvl (bid/ask)**

2. Money management... you should use a 0.01 for each 500/1000 in your account.
Considering that price may hit both levels few times in some occasions you'll need to be able to open positions and increase with 0.1 each time as much as it's needed without using too much lever.***

3. It's a con, not a pro that the trader must be in front of the pc to do this manually. Choosing a tp to high reduces the ammount of trading but that also means trading if needed for as long as the price takes to move out of that range.

* I chose a 10 pip between buy and sell but other values can be used
** If your broker offers fixed spread you'll have to calculate for each order where to put to/sl to have profit every time.
*** At first, a 0.1 to start does not look big but in a day where we have zigzag movements we may see the price touching each level 5 times before finally reaching for a tp and closing the deal, and 5 times each level may not seem much but i tell you it's over 5 lots so you should read point 2 again.


If you see other things that may influence this method of trading which has not been taken into consideration yet, please leave a reply.

There is a EA request for this method at : http://www.forexfactory.com/showthre...81#post7787081


Edit.
Thanks to Maharuay Post#06 http://www.forexfactory.com/showthre...83#post7787283 I found a solution to fix losing $ when multiple orders are open with the formula :
For each order added we will add to the tp another 5 pip
buy 0.1 + 0.3 = 0.4x 35 = 140 ........................buy 0.1 + 0.3 =0.4x 30 = 120
sell 0.2 + 0.4 - 0.6x 25= 150 ...........................sell 0.2 = 0.2x 40 = 80

buy 0.1 + 0.3 + 0.5 = 0.9x 45 =405 .................buy 0.1 + 0.3 + 0.5 = 0.9x 35= 315
sell 0.2 + 0.4 + 0.6 = 1.2x 35 =420 ..................sell 0.2 + 0.4 = 0.6x 45= 270

buy 0.1 + 0.3 + 0.5 +0.7= 1.6x 55 =880 ...........buy 0.1 + 0.3 + 0.5 + 0.7 =1.6x 40= 640
sell 0.2 + 0.4 + 0.6 + 0.8= 2x 45 = 900 .............sell 0.2 + 0.4 + 0.6 =1.2x 45= 540

What I understand by your system is that you are always trying to chase and catch the price. I know a few people who did this and even though initially they did seem to make profits but in a few months all those people I knew using this system got wiped out of the market.
I am not trying to discourage you or prove you wrong. I am just sharing my interaction with some people who used this system.
Again who knows you may have something much better than those people I knew.
I wish you luck and success in your system.

Can you please point me in the direction where they have discussed about this so i may learn something from their mistakes in order to improve this theory? A link, or a name of however they named it.
Thanks

This is not from any internet source and hence I cannot provide you any link for it.
During my starting days in fx trading (a few years back) I had given a small account to a cybercafe owner (recommended by a friend of mine ) who boasted to know trading very well. He used this price chasing strategy and in about 2 weeks the account lost a little more than 50% of equity. I closed the account and withdrew the remaining balance. Haven't heard from him since then.
In my state in India you pick up any regional newspaper and it says like this or something similar " Invest 10,000 , Earn 1000 daily". On personal interactions with some of these scam traders I found they use a very similar strategy of price chasing. Big lots , small stops and large profits. (SL : TP ratio is 1:2 or 1:3). They disappear very fast from the markets or their offices get closed. I have personally gone to verify.
My conclusion of all the above interactions (based on my little experience till date) : This strategy works very well in distinct trending markets , however when markets are moving in range or when there is spikes this strategy will not work.

Again I state that you may be different who can make it successful with your dedication and hard work. All the best to you.

Thank you.

I am currently doing this on a demo account manually for 5 pairs at the same time.
It requires a lot of attention, fast execution and need to calculate tp/sl according to bid/ask for each currency which is quite some effort.
I will post here images of the chart trades, results of trades closed, pro and contra for this as i keep testing.
Also taken into consideration to contact a developer who can patch this into a Ea and put it on for a period of time.

Hi, all

If price goes lower again (2nd), we sell 0.4 right ? OK if it goes down 15 pip we''ll have

Buy 0.1 + 0.3 = 0.4 x 25 = 10
Sell 0.2 + 0.4 = 0.6 x 15 = 9

Then we lost 10 . Am I right ?

The second Sell must be 0.5 , then we win 5 pip

Whatever form of "martingale" it is will be doomed to failure.

I have tried this system, it only works well in a trending market. If the market is sideway, you will have to sit in front of your computer all day and all night until you can close all the positions you have, otherwise your account will be wiped out.

It is very profitable to use this tranding system on the date when a big news is released. However, it is very stressful to use this strategy when the market is sideway, as you will have to add new positions all the time and you will at the end get a margin call.

I made 300% profit for one week, then got wiped out the week after. Now I stopped using this system.

Thank you for noticing and informing about that.

Found a fix for that also.

For each order added we will add to the tp another 5 pip
buy 0.1 + 0.3 = 0.4x 35 = 140 ........................buy 0.1 + 0.3 =0.4x 30 = 120
sell 0.2 + 0.4 - 0.6x 25= 150 ...........................sell 0.2 = 0.2x 40 = 80

buy 0.1 + 0.3 + 0.5 = 0.9x 45 =405 .................buy 0.1 + 0.3 + 0.5 = 0.9x 35= 315
sell 0.2 + 0.4 + 0.6 = 1.2x 35 =420 ..................sell 0.2 + 0.4 = 0.6x 45= 270

buy 0.1 + 0.3 + 0.5 +0.7= 1.6x 55 =880 ...........buy 0.1 + 0.3 + 0.5 + 0.7 =1.6x 40= 640
sell 0.2 + 0.4 + 0.6 + 0.8= 2x 45 = 900 .............sell 0.2 + 0.4 + 0.6 =1.2x 45= 540

Con: you may have one trade stuck for few days until the market takes a direction.
If you don't use MM you'll find yourself fast putting much more than it's worth in a single trade.

Pro: You can use this on a number of pairs at the same time.
You will have trades where first open and closed where 2nd order does not come.

Testing..
http://prntscr.com/4u6s8t usd/jpy 0.12 to be ignored.
It is not using the exact values as it is very difficult to open at the precise moment, calculate the spread and adjusting sl and tp manually.
Have posted it on forum and maybe we'll get lucky and one developer will have a look at the request.

Try sequencer
but it's dangerous in trading range
use it for instance at london open or after news

Thank you madscalp.
It is a bit differite from the one i described and it risks much more as the size of the orders are higher and if you attempt to modify it than the orders will close in loss.

Hi,
this morning I read accidentally your thread, and because in the past I've also tested something like this, I have a question.

I have calculated the mathematical expectation for your idea, and maybe I make a mistake or have not understood the rules, because the mathematical expectation is positive ...

Suppose 64 coin toss and a maximum level 6. We set 1 lot as unit.
After level 6 the lots will not be increased and you wait.
We have a grid with 10 points distance between buy/sell entrys, TP=15 points, SL = 25 points.

There is level 1 with 32 wins/32 losses, level 2 with 16 wins/16 losses, 3 with 8/8, 4 with 4/4, 5 with 2/2, 6 with 1/1
(win means to reach the TP, and loss means reversing the position)

The profit per the achieved level 1 = +15, 2 = +5, 3 = +10, 4 = -10, 5 = -15, 6 = -45
If 6 is not achieved, the higher level (for 5 lots) has a loss = -165.

The calculation of the win/loss values would be:
Level 1 = 32 wins x (1 x 15) = 32 x (+15) = +480
Level 2 = 16 wins x (-1 x 25 + 2 X15)= 16 (-25 + 30) = 16 x (+5) = +80
Level 3 = 8 wins x ((1+3) x 15 - 2 x 25) = 8 x (60 - 50)= 8 x (+10) = +80
Level 4 = 4 wins x (-(1+3) x 25 + (2 + 4) x 15) = 4 x (-100 + 90) = 4 x (-10) = -40
Level 5 = 2 wins x ((1+3+5) x 15 - (2 + 4) x 25) = 2 x ( 135 - 150) = 2 x (-15) = -30
Level 6 = 1 win x (-(1+3+5) x 25 + (2+4+6)x15) = 1 x (-225 + 180 )= 1 x (-45) = -45
If at the end, the level 6 is not achieved, we have on the opposite line (1+3+5) x 15 - (2+4+6) x 25 = (+135 - 300) = 1 x (-165)= -165

Per total we expect: +480 + 80 +80 -40 -30 -45 - 165 = +360 units

For 64 coin toss we expect 360 / 64 = 5,625 units win per toss...

If so, then we have a perpetuum mobile!
Can you please find my error? Thank you.

thanks Matraguna, try this method with EJ with PA, it works like a charm especially saving a losing trade, i close manually if it hit 5 pips if it doesnt trigger my other buy/sell stop

i will test again today and see

I agree with those suggesting better volatility times such as market opens

That was fixed after Maharuay posted what was a error in my calculation.
For each order added we will add to the tp another 5 pip
buy 0.1 + 0.3 = 0.4x 35 = 140 ........................buy 0.1 + 0.3 =0.4x 30 = 120
sell 0.2 + 0.4 - 0.6x 25= 150 ...........................sell 0.2 = 0.2x 40 = 80

buy 0.1 + 0.3 + 0.5 = 0.9x 45 =405 .................buy 0.1 + 0.3 + 0.5 = 0.9x 35= 315
sell 0.2 + 0.4 + 0.6 = 1.2x 35 =420 ..................sell 0.2 + 0.4 = 0.6x 45= 270

buy 0.1 + 0.3 + 0.5 +0.7= 1.6x 55 =880 ...........buy 0.1 + 0.3 + 0.5 + 0.7 =1.6x 40= 640
sell 0.2 + 0.4 + 0.6 + 0.8= 2x 45 = 900 .............sell 0.2 + 0.4 + 0.6 =1.2x 45= 540


If at the end, the level 6 is not achieved, we have on the opposite line (1+3+5) x 15 - (2+4+6) x 25 = (+135 - 300) = 1 x (-165)= -165
This is wrong as every time you will close a position you will have the highest number on the side you are closing.
Think you have 1 as buy and 2 as sell. If you take profit for buy and lose on loss than the price will visit the buy order where you open buy again with value higher than the sell. No matter where we close we will always have bigger position at that point than at the other one because we travel less to tp than the other one travels to sl.

(1+3+5) x 15 - (2+4+6) x 25 = (+135 - 300) = 1 x (-165)= -165
Correct would be .
(1+3+5)x 45 - (2+4+6) x 35 = (-405 + 420) = 1x (+15) = +15

That is a 3 buy 3 sell example and if we have 3x4 than.
(1+3+5+7)x 40 - (2+4+6) x 50 =(+640 - 600) = 1x (40) = +40
For each one more order added i moved profit by 5 pips and the one having more positions is the one traveling closer.

One trade taken yesterday where i have cut myself the profit by not setting sl and tp according to bid/ask for that currency.
http://i.imgur.com/ZMy39zK.png

First was a sell order with tp 15 and since it went lower after i have open the trade i have open a buy with double the sell order.
Because i have open 2 orders now the tp has moved to 20 pip (We start with 15 pip tp for one order and add 5 for every other order open)
The buy order started at 0.87663 and has tp at exact 20 pip at 0.87863
The sell order started at 0.87547 and has sl at 32.2 pip at 0.87869
The difference between tp and sl is 0.6 pip where the spread for this pair given by broker is 3 pip.
The 2nd order starts at 0.87663 and should have started at 0.87647 to have exact 10 pip between the 2 orders... Without an EA to open at the exact price it's almost impossible to have accuracy.

How it should have been.
Sell 0.87547 sl at 28.5 pip (sell orders close at buy price)0.87832 This is the bid/ask price and both orders will be closed at the same time.
Buy 0.87647 tp at 21.5 pip (buy orders close at sell price)0.87862

OK Matraguna could you posted again in first post your true method to avoid confusion.
Maybe a coder could make an EA with that ?

http://www.forexfactory.com/showthre...81#post7787081

It has been added to requests 1 day ago.
Hopefully someone will have a bit of time on his hands and have a look at it.
The Rsi has nothing to do with the system but since we need to open a buy or sell to start the basked we can use something simple as Relative Strenght Index .

Hé hé many customers......good luck