SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

I take from our Neighboorhood Forex Forum; Here's :

Hello all,

 

I have been demoing a simple trading strategy for a week (29th September-3rd of October 2008) and achieved almost 200% return on investment in a week with $5000 account and I would like to share it and it would be great to have many involved in testing this strategy out.

 

I am calling this a Trend Line Trading Strategy and it is based on:

 

Following the trend.

 

Heard & read that before a million times? Lol… I cant blame you. But maybe you can learn something extra here.

 

Do yourself a favour and take a look at a chart and see if you can identify a trend. Is there a main established trend? It is important that you identify the main trend & once that is identified, your trading decisions are based in the direction of the main trend. There are exceptions where you can go against the main trend, but I wont touch on that here. KISS… KEEP IT SIMPLE & SIMPLE.

 

TIMEFRAMES:

Timeframes suitable for these strategies are the daily, 4h, 1hr, 30mins.

 

INDICATOR:

I use only 1 Metatrader4 indicator called Swing ZZ(zz for zigzag). It is freely available in the net, just google it and you can download it. Thanks to the programmer who wrote it. This indicator is helpful simply because you can identify previous swing highs and lows which act as resistance & support levels and I think it is a handy tool to use in this strategy.

 

So lets get started shall we? I call this trendline trading strategy because it involves drawing trend lines using the swing highs and lows of the Swing ZZ indicator.

 

SHORT ENTRY RULES:

(a) look at the timeframe you wish to use and identify the main trend. Get the big picture first, that is very important. For me, when I want to trade on the hourly chart, I first check the daily chart and also like to see what is happening in the 4hr chart as well to see if I can spot an obvious trend or channel or congestion happening in the daily and the 4hour charts. I stay out if there is congestion until breakout of the congestion happens and a trend is established. I draw trendlines in the daily or on the 4rhly charts chart then switch to the 1hr timeframe. I identify trends in the hourly and draw trendline(s) as well.

(b) I place a sell stop order, at least 5pips below the LOW of the candle that touches or intersects the trendline. The trendline can be the daily, 4hrly or the 1hr trendline. You must place your order when that candle closes. Why 5 pips? I don’t know, 5 seems like a good number to me… I have five fingers on each arm and similarly for the legs, so 5 is a number I was born with… Put 10 pips if you want. Note you must wait for price to approach a trendline or very near to the trendline before you place your sell stop order.

© I prefer to place my stop loss at least 5 pips above the most recent swing high. You should set your stop loss according to your money management calculations and risk tolerance.

(d) I set my profit target just WITHIN the level of previous swing low.

(e) Trade management: as trade moves in my favour, I move my stop loss to at least 5 pips ABOVE each lower subsequent peaks (lower swing highs).

 

LONG ENTRY RULES:

Just do the exact opposite of short entry.

(1) Set your buy stop order 5 pips ABOVE the high of the candle that intersects the trendline when that candle CLOSES.

(2) I set my stop loss just below the recent low.

(3) I place my profit target WITHIN the level of the previous high.

(4) As trade moves in my favour I move stop loss to at least 5 pips just UNDER each higher subsequent higher swing lows that form.

 

SHORT ENTRY EXAMPLE:

The attached is 4hr USD/JPY chart showing short trades that could have been taken and would have been very profitable using this strategy.

 

http://img687.imageshack.us/img687/3743/gbr1.jpg

 

[/b]LONG ENTRY EXAMPLE:[/b]

Attached is USD/CAD daily chart and possible trade entries are shown to give you a visual understanding of how to identify potential trade setup and take them.

 

http://img262.imageshack.us/img262/1117/gbr2.jpg

 

Here is a screenshot of the trades I have taken using the strategy above. I have tried 1 min timeframe, 5 min timeframe and 15mins but towards the end, have tended more toward using larger timeframes like the 4hr, 1hr & 30min timeframe so that I don’t stay glued to the computer all day long.

 

Attached are account history screenshot of trades taken in two parts as I am unable to take 1 complete screenshot.

 

 

http://img687.imageshack.us/img687/6237/gbr3.jpg

 

http://img687.imageshack.us/img687/9370/gbr4.jpg

 

 

Wish you all good health.

 

Cheers

 

Myronn

email: [email protected]

:-bd

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

you got this from edward revy's forum did'nt you.

the system is old and redundant, myron blew his account a long time ago and never came back

thx anyways for the effort

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

Thank you for sharing your system, Kuekhatsu! Very inspiring! The profits look cool but are there any additional rules that could be added to reduce the number of losses as seen in your statement?

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

Edit.Didn't notice it was an extract

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

Thank you for sharing your system, Kuekhatsu! Very inspiring! The profits look cool but are there any additional rules that could be added to reduce the number of losses as seen in your statement?

Hello my friend;

Yes i knew; im still active in there; actually you can recognize me as Manus168 at those forum :)

Just for you know & remember there is NO any Trading system 100% perfect;or in another word : Holly Grail is Not exist; The Only thing can save us from the market is Money Management, that is only one can save us & can reduce our loss, not just on Myronn Trading System, but in another Trading System incld. Expert Advisor (Auto Trade).

Best Regards;

:)

Manus168

(Kuekhatsu)

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

Thank you for your system. Interesting thoughts and forex approach. \m/

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

you got this from edward revy's forum did'nt you.

the system is old and redundant, myron blew his account a long time ago and never came back

thx anyways for the effort

AFAIK there is not any proof that Myronn blew his account. He never said this. He left that forum, but nobody knows why.

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

 

AFAIK there is not any proof that Myronn blew his account. He never said this. He left that forum, but nobody knows why.

mayb he's enjoy his days..come on,traders also need some space..

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

Somebody (maybe from this forum) asked Edward, the owner of the Forex Strategies Revealed forum about the disappearance of Myronn. here is what he said:

It's never easy to support a thread for months, Myronn simply left when he felt it was the time to leave, it happens sooner or later. Quite understandably.

 

He didn't blew his account, he simply decided to leave.

 

His system is based on fundamental pillars of technical analysis (trend, S/R levels, sound risk:reward). Such systems never fail.

 

Best regards,

Edward

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

It's never easy to support a thread for months, Myronn simply left when he felt it was the time to leave, it happens sooner or later. Quite understandably.

 

He didn't blew his account, he simply decided to leave.

 

His system is based on fundamental pillars of technical analysis (trend, S/R levels, sound risk:reward). Such systems never fail.

 

Best regards,

Edward

that is nothing more than wishful thinking. He answered all the questions detailed his progress and then suddenly one day he disappears. v-a-m-o-s-h !!

Because he became a millionaire trader???

You wish.

when people publish unproven or experimental systems you will never hear them say i stopped because i blew my account. They'd give some other reason like too busy at work can't find the time, or i'm a long term trader now or some such excuse. Hop over to ff and check out the trading section. you'll find it littered with systems which don't work. Yet for all those systems never did the OP admit the system doesn't work or he blew his account.

The systems which do work are just a handful and are still around like philip nel's macd or 5 min system or THV.

in fx overwhelming majority of the stuff doesn't work, its very hard to find something that works and when u find it then its even harder to get your self to follow the rules to trade it.

When people make statements like "most systems work if traded according to the rules andwith disciple" its completely untrue. Like i said very few systems are actually proven to work the rest are just a roll of the dice and a lucky streak.

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

Kuekhatsu the systems u posted at edward revy's forum are quite good, why not link them or post them here? i'm sure it will benefit a lot of people

:)

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

In general, you are right.

But it is a price action system, based on trendlines, support and resistance lines. It is not mechanical, and does not use any indicator (the zigzag is only a helper, not necessary for someone who can see the swing highs and lows). There are similar systems, like the No Brainer Trades on FFactory, which uses horizontal SR lines and it is still around. The large funds and banks use the trendlines and SR lines too for decades.

I don't know what happened with Myronn, but you don't know it too. You wrote that he blew his account. You don't know it, you only think it. It is not the same.

Maybe he is now a millionaire, maybe he blew his account because overtrading and breaking his own rules. Maybe he died (I hope not). I don't know but it does not matter too much for me.

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

any1 can create an EA to trade using zigzag system? or any EA out there that use zigzag system to trade?

Re: SIMPLE TRENDLINE TRADING SYSTEM By MyronnFX

Hi,

I myself work with zigzag and I must say it is one of the best indicators if you know how to interprietieren the

Here is the indicator for download:

Hi edi025,

where is the indicator?

Thanks

Hi,

 

I myself work with zigzag and I must say it is one of the best indicators if you know how to interprietieren the

Here is the indicator for download:

Hi edi025,

 

where is the indicator?

 

Thanks

Hi anton,

I have swing zigzag indicator, but I do not know if the same one edi025 meant.

hxxp://[email protected]/file/ykVM413y/swing_zz.html

Check it out