Ichimoku a240 System
Long ago, a friend of my and myself, designed a system to trade USD futures and we were getting good results. Lack of money and discipline made the system fail and die. We named the system a240.
Today I am going to revive this system again and give it a try on Forex markets, and then here we all together and for all of us, we will make this system work.
The system is based on manual entries; I may write some EAs or scripts to support it, but not to automatize it. The timeframe I will be using is four hours (H4) and decisions are made after the bar closes. It means that we do not have to be in from of the computer all the time.
This system is not for sale, I will share it for free.
I am going to start with the base rules of the original a240 adding to it what I been learning when developing the scalping system I did called Expanding Grid (click link for details)
I will keep updating this post, or adding references, as new rules are added, then it will be easier to keep everything together in one place.
Here it goes:
Setup:
Open a H4 chart, example EURUSD and apply the template “Ichimoku_a240.tpl” I am attaching to this post.
Signals:
We will trade on some of the ichimoku system signals, bounces, breakout, etc and some price action signals like support and resistance, fractals, etc. We will get ready when price is near some of those levels. I will detail the signals in different posts, as they appear, and then I will reference they post here.
Rule of thumb: If a H4 bar, bigger than average H4 range, closes red above D1 Senkou-Span-B and below H4 t-line (red line) revise to buy. if a green bar closes green below D1 Senkou-Span-B and above H4 t-line, revise to sell.
Entry:
We will open long above D1 Senkou-span-B and short below D1 Senkou-span-B.
We will entry the trade using the H4 “t-line zigzag approach” (see below). For price action traders, this approach is just an engulfing candlesticks pattern.
Rule of thumb: After a buy signal, if there are clean room to the upside, trail an entry order above/near the high of previous bar or at the open if the bar is visually more than double of the average bar sizes. be sure to not place an order below t-line. For a sell signal, reverse de logic.
Manage:
The system run without stop loss order, the maximum loss is your capital. Do not ask for stop loss here, for now. If we are able to find a good stop loss strategy were you do not end losing all your money, then we will apply it. We will use stop orders to lock profit only.
We will manage the loss averaging down the position by doubling the last lot size quantity, then moving the target to break even plus….
it is recommended to use a240Trader EA for unattended situations or to let the EA manage it taking emotions out of the equation. (Muy importante)
Target is a reversal formation at any signal levels if it is at profit. Example, a red bar low below the t-line for a long position or a green bar high above t-line for short position.
Confused?
I am going to post samples and I will continue to update this main post as signals or trades develops.
Stay tuned…
Exit Samples:
References:
Post 3: t-line zigzag approach. (Twist and turn)
Post 25: a240Trader EA
Post 30: lineTrader feature usage (a240Trader)
Post 73: Reversing positions.
How to calculate the grid size?
You may follow free signals here
Ichimoku a240 signals
Please post your results,
by bauta, 2015
Long ago, a friend of my and myself, designed a system to trade USD futures and we were getting good results. Lack of money and discipline made the system fail and die. We named the system a240.
Today I am going to revive this system again and give it a try on Forex markets, and then here we all together and for all of us, we will make this system work.
The system is based on manual entries; I may write some EAs or scripts to support it, but not to automatize it. The timeframe I will be using is four hours (H4) and decisions are made after the bar closes. It means that we do not have to be in from of the computer all the time.
This system is not for sale, I will share it for free.
I am going to start with the base rules of the original a240 adding to it what I been learning when developing the scalping system I did called Expanding Grid (click link for details)
I will keep updating this post, or adding references, as new rules are added, then it will be easier to keep everything together in one place.
Here it goes:
Setup:
Open a H4 chart, example EURUSD and apply the template “Ichimoku_a240.tpl” I am attaching to this post.
Signals:
We will trade on some of the ichimoku system signals, bounces, breakout, etc and some price action signals like support and resistance, fractals, etc. We will get ready when price is near some of those levels. I will detail the signals in different posts, as they appear, and then I will reference they post here.
Rule of thumb: If a H4 bar, bigger than average H4 range, closes red above D1 Senkou-Span-B and below H4 t-line (red line) revise to buy. if a green bar closes green below D1 Senkou-Span-B and above H4 t-line, revise to sell.
Entry:
We will open long above D1 Senkou-span-B and short below D1 Senkou-span-B.
We will entry the trade using the H4 “t-line zigzag approach” (see below). For price action traders, this approach is just an engulfing candlesticks pattern.
Rule of thumb: After a buy signal, if there are clean room to the upside, trail an entry order above/near the high of previous bar or at the open if the bar is visually more than double of the average bar sizes. be sure to not place an order below t-line. For a sell signal, reverse de logic.
Manage:
The system run without stop loss order, the maximum loss is your capital. Do not ask for stop loss here, for now. If we are able to find a good stop loss strategy were you do not end losing all your money, then we will apply it. We will use stop orders to lock profit only.
We will manage the loss averaging down the position by doubling the last lot size quantity, then moving the target to break even plus….
it is recommended to use a240Trader EA for unattended situations or to let the EA manage it taking emotions out of the equation. (Muy importante)
Target is a reversal formation at any signal levels if it is at profit. Example, a red bar low below the t-line for a long position or a green bar high above t-line for short position.
Confused?
I am going to post samples and I will continue to update this main post as signals or trades develops.
Stay tuned…
Exit Samples:
Sample 1:
a) Post 114
References:
Post 3: t-line zigzag approach. (Twist and turn)
Post 25: a240Trader EA
Post 30: lineTrader feature usage (a240Trader)
Post 73: Reversing positions.
How to calculate the grid size?
You may follow free signals here
Ichimoku a240 signals
Please post your results,
by bauta, 2015
Attached File(s)
