5k to a million in just Months on a Live account

[fxeasy5]

English blog

http://www.1millionusd.blogspot.com/

German blog

http://fromdemoto1million.blogspot.com/

[iGeng]

I was tempted to test out either the 2nd or the 3rd method, but then I found out my broker does not allow hedging. (Yes, I never had to open simultaneously an active long and an active short trade at the same time.) When I tried that, my broker (Oanda) simply cancels out the previous but opposite active trade. I can have multiple trades active, but they have to be in the same direction, not in opposing direction. Sigh!

 

Although I think there is potential here, but at this point I will have to pass up pursuing this, because I am not willing to change broker at this point just to try out these methods. Good luck to our forum friends here who will pursue this. I will follow your progress here.

 

you actually can hedge with oanda. you just need to create a sub account

[fxeasy5]

Thanks fxeasy5, your explanation is clearer than the original author's. If my understanding is correct, does that mean, there should never be a situation when we have opposing trades opened at the same time? For example, if Long 1, L2, L3 is opened, there cannot be any Short 1, S2, or S3 also opened at the same time. Because by the time price comes back to trigger any of the S1, S2, or S3, their opposing trade should have already closed?

 

If that is the case, may be I can still use it with my (no-hedging-allowed) broker, and not to give this system up completely yet.

 

Edit: If you use strategy-3 with identical lots, there will be trades in different directions, e.g. 1 Long and 2 Shorts open at the same time.

Therefore you cannot use this strategy on your platform.

Edited April 30, 2010 by fxeasy5

[john225]

Fxeasy5 have you tested the system already?

[hermanhess]

English manual in PDF-format

http://www.mediafire.com/?tjhmnmboudj

Yes. Exactly.

 

Please help somebody with scripts which help to place the orders.

The Mt4-platform is such a pain in the a....

 

thx for your reply fxeasy and kudos to you for translating the system.

 

I too am searching high and low for scripts to place the orders hopeful we will find suitable ones soon. At the current time I just have a scrip which draws lines at tp and sl and you can drag the line on ur chart to change the tp or sl without having to punch in any numbes in MT4 if anyone who already doesnt have it needs id I've uploaded it here

 

hxxp://www.multiupload.com/A3J9W4SBAI

[joeytrader]

you actually can hedge with oanda. you just need to create a sub account

 

iGeng, thanks. I didn't even know I can open a sub account with Oanda. Ha, show you how much I know about my own broker, lol. I will explore that possibility. But I assume with a sub-account, the margin limit will be calculated separately. So I will need to either add extra fund into the sub-account, or split the main account's balance into 2, and calculate all position size at 1/2 of original size. Also, if the market is moving fast, I will need to move from one account to the other back and forth rather quickly, to make the needed adjustments. (Unless I can figure out a way to open chart from both account simultaneously) But still worth thinking about. Again, thanks.

[joeytrader]

As long as the actual open order(s) have a corresponding pending-order waiting

at the SLs, you can trade it on your broker.

 

Maximum open orders in Drawdown are 2 orders, which point in the same direction.

Maximum open orders in profit are 3 orders in the same direction.

That is no problem on your platform.

 

As soon as an open order (or 2 ) hit SL, the corresponding order(s) open.

You never hedge with this strategy.

Strategy 2 (Trend shadow) needs hedging. That is not an option for you.

 

I guess I must be confusing elements of the 2nd strategy with the 3rd one. When I first read the manual, I somehow thought there would be scenarios where there can be long and short orders opened at the same time. Especially near the end of the manual, there was an example of

 

"...

We then have 4 open orders:

Long-1 at 124.60

Long-(4) at 124.50

Short-2 at 124.10

Short-(4) at 124.30

..."

 

At the time I saw the above, I thought he means at the same time. I probably need to re-read the manual and follow the example more carefully a few more times.

 

Edit: See your new edit, fxeasy5. Understood. Thanks. If I want to pursue this, I'll either open a sub-account on my broker to trade both directions for strategy 3, or only trade strategy 1 (the simple martingale one).

Edited April 30, 2010 by joeytrader

[lud]

English blog

http://www.1millionusd.blogspot.com/

German blog

http://fromdemoto1million.blogspot.com/

 

 

THANKS bro.

[crushbeat]

hello guys..

 

positions today :

http://img100.imageshack.us/img100/3958/eu100k.gif

 

SL+1 after 10 pips reached

 

thanks

[fxeasy5]

I guess I must be confusing elements of the 2nd strategy with the 3rd one. When I first read the manual, I somehow thought there would be scenarios where there can be long and short orders opened at the same time. Especially near the end of the manual, there was an example of

 

"...

We then have 4 open orders:

Long-1 at 124.60

Long-(4) at 124.50

Short-2 at 124.10

Short-(4) at 124.30

..."

 

At the time I saw the above, I thought he means at the same time. I probably need to re-read the manual and follow the example more carefully a few more times.

Sorry, joey

I was distracted when I wrote that.

Today I re-read the manual and here is the correct strategy-3 in my own words:

 

Strategy-3:

 

1. Find a range you like to trade. ( I call it a box although it is only 2 lines, support and resistance )

 

2. Place 3 Long above the box.

 

Long-1 entry at top of box = Resistance-line (some like to place the entry a few pips higher to not get filled by false breakouts )

Long-2 10 Pips higher than Long-1

Long-3 10 Pips higher thank Long-2

 

3. Place 3 Shorts below the box.

 

Short-1 at bottom of box = Support-line

Short-2 10 Pips below Short-1

Short-3 10 Pips below Short-2

 

Lot-sizes are identical all the time.

No doubling at anytime.

 

Orders have no SL, only TPs.

TP of each order = Size of Range (= distance of Support to Resistance of the box)

 

SL is only used for trailing as soon as an open order moves 10 Pips into profit.

 

A few examples to explain it:

 

Range = 50

Resistance at 1.3250

Support at 1.3200

Price moves within this range.

We want to trade the breakouts.

 

Long-1: 1 Lot at 1.3250 TP: 1.3300

Long-2: 1 Lot at 1.3260 TP: 1.3310

Long-3: 1 Lot at 1.3270 TP: 1.3320

 

Short-1: 1 Lot at 1.3200 TP: 1.3150

Short-2: 1 Lot at 1.3190 TP: 1.3140

Short-3: 1 Lot at 1.3180 TP: 1.3130

 

Price moves up and hits 1.3250 , Long-1 is opened.

Price moves 10 Pips up.

Long-2 is opened.

SL of Long-1 is moved to breakeven (BE).

 

Price moves another 10 Pips up.

Long-3 is opened.

SL of Long-2 moves to BE.

SL of Long-1 moves to entry of Long-2 ( 10 Pips above entry of Long-1 ).

 

If price moves another 10 Pips up:

SL of Long-3 moves to BE.

SL of Long-2 moves 10 Pips above entry of Long-2.

SL of Long-1 moves 20 Pips above entry of Long-2.

 

We hope that price will move up until all 3 TPs are hit.

If price retraces, all 3 Longs will close in profit.

 

To be continued for whipsaws.

[xptitan]

hi, what about if price keep whipsaws between the range? let say after break long 1 then it move down to short 1 and keep going to 2 and 3, how to set the proper lot order in the ranging market while face this problem, senior?

[mograst]

I used this today mornig (european opening -with strategy3 -) on eurjpy and eurcad with 1 lot and just make $480 profit. Could make much more but i open only 3 consecutive orders in both ways so if I made more order I probalby could double the wins.

Now problem is what is the best range to let this strategy works (strategy3) If I use breakout indicator the range may be more than 40 pips as explained inj pdf and if trade goes agains you it will give much more DD befor coulterorder will be executed... that sayd I thing a max of 50 pips should be used. Trade should begin on the side where there is more probability the outbreack would be. If there is a false outbreak then afhter 40-50pis should go the opposit order and the you have to manage as written in the pdf if price is going sideways... I will test this next week. Also if you could put trailing stops instead moving it manually would be better.. but not all broker lets you set a trailing at 10 pis. BTW does alpari allow trail at 10 pips??

[fxeasy5]

hi, what about if price keep whipsaws between the range? let say after break long 1 then it move down to short 1 and keep going to 2 and 3, how to set the proper lot order in the ranging market while face this problem, senior?

Please do not mix the strategies, otherwise we don´t know what we are talking about.

 

In strategy-3 you never change the lot-sizes.

For strategy-1 and 2 the lot-sizes have been explained in the manual.

 

In a ranging market, either the trades never open or in strategy-3 you have maximum of 2 open orders in Drawdown.

[Rio]

What we need is a MECHANICAL explanation of how and WHEN to trade. That way, we are all on the same page, and we can code EAs and the like.

[hermanhess]

 

We hope that price will move up until all 3 TPs are hit.

If price retraces, all 3 Longs will close in profit.

 

To be continued for whipsaws.

 

so the final time the sl is moved is to L3 at BE after this if the price continues to go up do we keep the sl's where they are which is L3 at BE, L2 at +10 and L1 at +20 and wait for either price to hit all three Tp's or to hit these three sl's

 

or do we continue trailing the sl 10 pips on all three longs all the way as price moves up?

[john225]

So with the strategy 1 and 2 the chance to get a margin call is bigger than with strategy 3?

[lud]

which startegy does he use? the manual says nothing about it

[john225]

I looked at his homepage and he wrotes me a email and so i think he is using the 3rd one

[mograst]

I will continue next week testing strategy3 only as it seems the most profitable and less DD. I also like to test breakout with european opening only and not more than 50 pips space betwean the buy and sell orders...

[fxeasy5]

so the final time the sl is moved is to L3 at BE after this if the price continues to go up do we keep the sl's where they are which is L3 at BE, L2 at +10 and L1 at +20 and wait for either price to hit all three Tp's or to hit these three sl's

 

or do we continue trailing the sl 10 pips on all three longs all the way as price moves up?

The author is not specific about this, but from his description of the strategy it looks like he secures the 3 orders until L3 has its SL at BE.

Then he hopes for the best.

 

It is the old problem: when do we exit a profitable trade ?

 

I am sure we will find trades where hitting the TP of 40 or 50 Pips would be a very sad event, given that we see on the chart that price moved 200 Pips

in our favor.

On the other hand: profit is profit, do not look back.

 

It comes back to your own decision: exit when 2 Moving-averages cross, exit at TP and risk that price reverses and you get stopped out.

Exit when RSI or Stochastic or CCI indicate it.

Whatever.

[fxeasy5]

I want to point to the rule of placing new orders at a shorter distance than the origina range in strategy 3.

 

Example: L1 open, price goes down.

S1 and S2 open.

Price goes up again.

 

S1 hit BE, S2 goes into drawdown.

 

Now we place L4 , but 10 Pips lower then the entry of L1.

This reduces the original range, it shortens the distance between Shorts and Longs.

 

And don´t forget to replace S1 ( which hit SL at BE and is out of the game )

with S4 at the same entry-level of S1 .

 

By doing this, it is possible to have 4 open orders ( S5 , S2 , L5 and L1 ) and if price is in the middle of the range, all 4 are in DD.

 

But that does not matter. It is not dangerous to the account and price will break out

of the box sooner or later.

[joeytrader]

I want to point to the rule of placing new orders at a shorter distance than the origina range in strategy 3.

 

Example: L1 open, price goes down.

S1 and S2 open.

Price goes up again.

 

S1 hit BE, S2 goes into drawdown.

 

Now we place L4 , but 10 Pips lower then the entry of L1.

This reduces the original range, it shortens the distance between Shorts and Longs.

 

And don´t forget to replace S1 ( which hit SL at BE and is out of the game )

with S4 at the same entry-level of S1 .

 

By doing this, it is possible to have 4 open orders ( S5 , S2 , L5 and L1 ) and if price is in the middle of the range, all 4 are in DD.

 

But that does not matter. It is not dangerous to the account and price will break out

of the box sooner or later.

 

Thank you fxeasy5, for your detailed and clear explanation of strategy 3, both from the earlier post example on no draw-down scenario, as well as the example of draw down in the later post. You have a talent for explaining difficult concept in easy-to-understand example. I am much clearer now on strategy 3 than I ever was earlier. And I agree with you, strategy 3 is far less dangerous than either 1 or 2.

[hermanhess]

I want to point to the rule of placing new orders at a shorter distance than the origina range in strategy 3.

 

Example: L1 open, price goes down.

S1 and S2 open.

Price goes up again.

 

S1 hit BE, S2 goes into drawdown.

 

joey, fxeasy or anyone else could you tell me when S1 is opened will L1 be closed because of sl? If not at what point will L1 be closed?

[joeytrader]

joey, fxeasy or anyone else could you tell me when S1 is opened will L1 be closed because of sl? If not at what point will L1 be closed?

 

Need to confirm with fxeasy, who has a far better understanding than mine.

 

But the way I understand it is, there is no stop loss for L1,

unless (a) price has already moved to L2, then the stop for L1 is at breakeven,

or (b) price rises to L3, then L1 stop at 10 pips profit, and L2 stop at breakeven,

or © price rises over 10 pips past L3, then L1 stop at 20 pips profit, L2 stop at 10 pips profit, and L3 stop at breakeven.

 

Alternatively, if L1 is triggered, without price touching L2, and then price drops to open S1, you have BOTH L1 and S1 opened simultaneously at this time. And if somehow the price only heads lower, after S2 and S3 are also in enough profit (remember moving the respective stops to breakeven or to profit), such that the overall net positions is in positive territory, then you can cancel the L1 trade at any time. (the L1 trade individually is a loss, but the profit from S1, S2, and S3 is more than enough to cover that loss)

 

fxeasy feels free to correct or add to my understanding.

[kokanal]

Hello everyone,

This is indeed interesting strategy. I think I understand it but may be wrong. One day of trial and for further forward results on demo please see the following. http://germanstrat.mt4live.com/

 

Accounts less than 0.5 lot are my scalping trades. you can see my account exploded by 40% in one day. I am using way over leverage but trying to imitate results of the author of this strat. aim is to make 10k into 100k in 2 months. Will see how it goes........

Edited May 1, 2010 by kokanal