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

[lerxst]

Thanks fxeasy5 for the continued translation and explanation of this system.

 

Few thoughts from reading this thread and the related materials. When you open an L1 and then have the opposite S1 order opened, say that the range is 40 pips. This is in effect locking in the 40 pips loss, so when you go S2 S3, these two orders have to combined overcome the 40 pip loss to make profits. Now if you take the stop on the L1, together you have S1,2,3, in your favor which would require less market movement to put in overall profit.

 

I think the overall idea is to just keep the range for 40 or whatever you designate. Whenever you trail a order and it stops and goes against you, change the pending order so that it's 40 pips away from your last open order. This way you're continually bouncing between this range and your d/d's don't get out of control; until finally you have a breakout in one direction. This will make up for the losses that you sustained. He does mention to have no more than 2 losses going against u at once.

 

The author wasn't very clear on which method, strategy he uses because the lot sizes aren't kept the same. Whether it's a scam or not, who cares; we have the system and now it's up to us to make the best of it. Demo or real, he was able to make those outstanding profits, so there's some merit in what he's doing.

 

Great thread and thanks to everyone for the contribution.

Edited May 3, 2010 by lerxst

[mograst]

I am curiouse if you use the breackout box to place orders outside the box whatever the distance of the box is and do this once a day in the eur/longod opening ? Or do you use the supports (15m, hourly, daily) with about 40-50pips distance to place pending orders whenever there is an opportunity? not sure i understand the pdf... nothing is mentioned about this.... thanks

[crushbeat]

so there is no trade for today if im not mistaken?

[kokanal]

hello,

 

how to find the correct support and resistance? which support or resist do we choose? im kind of confused here.

 

thanks

 

 

Crushbeat,

 

THe best S/R are where either the price has bounced few times or a sharp reversal such as pinbar has formed. Once market breaks these S/R there is very high likelihood that you will get your tp in the first run.

[fxeasy5]

I am curiouse if you use the breackout box to place orders outside the box whatever the distance of the box is and do this once a day in the eur/longod opening ? Or do you use the supports (15m, hourly, daily) with about 40-50pips distance to place pending orders whenever there is an opportunity? not sure i understand the pdf... nothing is mentioned about this.... thanks

The breakout-box does not matter.

You are looking for a range which fits.

If the breakout-box has that range, then you can use it.

 

Here is the strategy-3 for all ( since the author is not clear himself and varies the lot-sizes sometimes, we cannot

work with fixed rules too )

 

1. Find a pair which has an average daily range of more than 100 Pips, the higher the better.

 

2. Draw Support and Resistance lines on the chart ( for trading he uses M15-chart, but that is not important ).

 

3. Find a range ( = distance between a Support-line and a Resistance-line ) on the chart you want to trade.

The range should be 30 - 50 Pips , on pairs like GBPJPY as high as 80 Pips maximum.

 

Important: Order-size never changes.

No Martingale strategy here.

All orders have same lot-size.

The author uses 0.5 lot-size for $10.000 balance for each order.

 

4. Place 3 Long-orders (BUY_STOP) like this:

Long-1 entry = Resistance-level , TP = range (distance between Support and Resistance in Pips)

Long-2 entry = Long-1 + 10 Pips , TP = range

Long-3-entry = Long-2 + 10 Pips , TP = range

 

5. Place 3 Short-orders (SELL_STOP) like this:

Short-1 entry = Support-level , TP = range

Short-2 entry = Short-1 minus 10 Pips , TP = range

Short-3 entry = Short-2 minus 10 Pips , TP = range

 

Rules when orders open.

 

1. An open order which is 10 Pips in floating profit -----> set SL at Breakeven.

 

2. For Order-1 ( either Long-1 or Short-1 )

- if 10 Pips in floating profit -----> set SL at BE.

- if 20 Pips in floating profit -----> set SL at entry + 10 Pips.

- if 30 Pips in floating profit ------> set SL at entry + 20 Pips.

 

3. Exit at TP.

Later on we see that there are several ways to exit.

And there seems to be a general rule to add more pending-orders than the 3 initial-pending orders.

In order to catch the maximum Pips from a move, the author places pending-orders in the direction of the trend every 10 Pips.

He locks in profit as described above ( place SL at BE when trade is 10 Pips in profit, then trail the SL each 10 Pips.

 

4. If an order is closed by hitting SL,

it must be replaced at the same entry-level .

 

5. When Order-2 opens (either short-2 or long-2),

the entry of the corresponding order ( that which is set in the opposite direction )

must be moved to the distance of the range in Pips.

 

Example:

Range = 50 Pips

Long-1 opens at 1.3350 TP= 1.3400

Short-1 sits on 1.3300 TP= 1.3350

 

Long-2 opens at 1.3360 TP = 1.3410

Short-2 sits on 1.3290 TP = 1.3240

distance between Long-2 and Short-2 = 70 Pips.

But we want distance = range = 50 Pips.

-----> Short-2 must be deleted and a new Short-2 placed at 1.3310 , TP = 1.3260

 

6. When Order-3 opens (either short or long),

the entry of the corresponding order must be moved to the distance of the range in Pips.

 

Example:

Range = 50 Support: 1.3300 Resistance: 1.3350

We place 6 pending orders:

 

Long-1 at 1.3350

Short-1 at 1.3300

 

Long-2 at 1.3360

Short-2 at 1.3290

 

Long-3 at 1.3370

Short-3 at 1.3280

 

Price moves up and opens Long-1 , nothing happens.

 

Pice rises another 10 Pips : Long-2 opens.

Actions which must be taken:

a) SL of Long-1 placed at BE.

b) Short-2 deleted and placed at distance of 50 Pips ( range-size ).

in our case: Short-2 new placed at 1.3310

 

Price moves another 10 Pips: Long-3 opens.

Actions which must be taken:

a) SL of Long-2 placed at BE.

b) SL of Long-1 moved to entry + 10 Pips.

c) Short-3 deleted and placed at distance of 50 Pips below entry of Long-3.

in our case: Short-3 new placed at 1.3320

d) Place new pending Long-order 10 Pips above Long-3.

 

You can as well place more pending Longs all the way up to the TP in 10 Pips distance

and trail all Stop-Losses of the preceding Longs which are already open and in profit.

This is necessary if you have one or more Short-orders active in drawdown in order get an

overall profit from the session and it increases profits in "normal" sessions.

 

 

7. When do we end the session ?

Generally speaking: only when the sum-total of the session is a profit.

Sometimes this happens automatically when price moves accordingly and all orders close in profit ( only one or 2 opposite orders

have to be closed in loss ).

Sometimes we get stopped out in profit or 10 Pips profit.

Sometimes we lock some profit and let the positions run as long as we like ( some use indicators, moving-averages crossing or whatever ).

Sometimes we chose to trail all positions until all are stopped out.

No fixed rules besides that: only end the session in profit if possible.

[mograst]

some limits i note:

this is what happens today on gbpjyp (on FXPro)

 

Marke had false breakout and oneped S1

the reversed and opened L1

 

if market move quickly UP L1 open then L2 and L3 opened and you should move SL for L1 and L2 to BreakEven BUT in the meantime the market

dropped 5 due volatility

you will be able move SL of L1 to BreakEven but NOT SL of L2 to BreakEven just because your broker doesnt allow put SL of 5 pips on your order.

(just suppose market revesed 5 pips quickly)

You will risk the trade reverse without putting a SL for L2 at breakEven. If marked drops you will be IN with 2 loosing orders, the S1 that is in loose plus the L2

That is also going to loose.

i also note that to recover S1 you need hugh movement on buy orders or you will never going to cover the S1. So I think distance of sell orders and buy orders should

be not more than 40 pips.

[lerxst]

@mograst

 

I'm using 15 min charts to get a better glimpse of the price action and not using the breakout box. The overall method is not relying so much on the breakout box indicator, it's more to do with how you position size and handle the pending, active orders and move the orders SL once they're hit and adjust. So I just used 40 pips as an example and we can look at the market prior to london open and check for the previous highs and lows and use that as a range for the pending orders.

 

The author wasn't clear about the stop or no stop issue on these orders. And as I mentioned, if you take the stop loss route; then your orders will help to get you in profit faster. If you just put a pending order, say you L1, market drops, S1 opens; that locks in -40. You then have to rely on S2, and S3 to combine to get over 40 pips for you to be in overall profit. If you take the L1 at -40 pips stop, then you have S1,S2,S3 combined total to get you over 40 pips. The risk is obvious the reversal if it doesn't move your direction.

 

It's then also important to replace your opposite pending orders right away, so ensure that your range doesn't get out of control.

[mograst]

still have some doubts... what happens you have L1 L2 L3 and L4 just opened. When do you close L1 L2 and L3 ?Waiting the trend reverse? there is no TP in this strategy

If then trend reverse you juts kicked out at BE (0) for L1, L2 and L3 plus L4 is going loosing ...

[lud]

move sl 10 pips, so you have a trailing TP/SL

[hermanhess]

still have some doubts... what happens you have L1 L2 L3 and L4 just opened. When do you close L1 L2 and L3 ?Waiting the trend reverse? there is no TP in this strategy

If then trend reverse you juts kicked out at BE (0) for L1, L2 and L3 plus L4 is going loosing ...

 

you keep trailing every 10 pips till ur stopped out or you hit a tp which is the range for every order, I think the tp is the range

[hermanhess]

something fishy with this strategy, although its quite correct that the exit is more important than the entry and money mangement is the most important technical aspect in trading its also true money mangement alone can not provide the edge ie positive expectancy. If this weren't the case then people would be able to consistently generate profit from random entries. James Simons of renaissance wouldn't spend his time in emperical analysis and employ PhD's in pure science to try to extract an edge in the markets the LTCM people wouldnt have spent years developing complex options pricing models to beat the markets.

 

They'd just draw two lines and enter the market and manage the trades.

 

Even if Mr. Sebastian has traded 5k to 100k in a few months I dont think he's disclosing exactly what he's doing. Or maybe he is using a lot of discretion about what ranges he chooses and why and when and if he doubles up and when he doesnt. Even in the english blog i saw some of his trades with different lot sizes.

[hermanhess]

fxeasy can u explain point number 4

 

4. If an order is closed by hitting SL,

it must be replaced at the same entry-level .

 

Does this mean if an order is stopped out by trailing stop we open another order at the same price this order (which was just stopped out) was originally opened?

[fxeasy5]

fxeasy can u explain point number 4

 

4. If an order is closed by hitting SL,

it must be replaced at the same entry-level .

 

Does this mean if an order is stopped out by trailing stop we open another order at the same price this order (which was just stopped out) was originally opened?

Yes, if possible.

 

mograst is correct.

In live-trading it is not possible to move SL to BE all the times due to broker-restrictions.

Since GBPJPY has at least 7 Pips spread and some brokers require a distance of 10 Pips or more for a pending-order,

it is not as easy as the author describes it.

 

As I said before:

I have problems with sick personalities like him.

They are "absolute winners", "positive thinkers" and such, but they have no understanding of clarity or

explaining what they really do.

On the contrary, they sell hilarious "manuals" to people and try to impress everybody with their "achievements".

 

We have to live with what he "revealed" to us.

Hopefully we´ll get the updated version. Maybe he clarifies some things there.

[mograst]

Yes, if possible.

 

mograst is correct.

In live-trading it is not possible to move SL to BE all the times due to broker-restrictions.

Since GBPJPY has at least 7 Pips spread and some brokers require a distance of 10 Pips or more for a pending-order,

it is not as easy as the author describes it.

 

As I said before:

I have problems with sick personalities like him.

They are "absolute winners", "positive thinkers" and such, but they have no understanding of clarity or

explaining what they really do.

On the contrary, they sell hilarious "manuals" to people and try to impress everybody with their "achievements".

 

We have to live with what he "revealed" to us.

Hopefully we´ll get the updated version. Maybe he clarifies some things there.

 

maybe using trailing stops mail help to move SL to BE. On Demo I am able to set 10 trailing... not sure if on live is possible to as some brokers as for at least as 15 pips trailing. Maybe an automatic script would be helpful. Anyone know some good script?

 

PS: this morning good breackout for gbpusd, eurjpy and gbpjpy unfortunalety i was at breackfast and couldnt catch the outbreack and follow them... It may be good if we have an EA for this.. so we would be able to work on different pairs same time without stress.. I think i will contact my programmer and ask him to create that EA if possible... but not sure. Or at least a script that managed all open trades automatically once trades has ben placed manually. Is somone else interested? Please PM

thanks

Edited May 4, 2010 by mograst

[lud]

hi, i´m also intersted in an ea for the 5k to 1 million strategy, please have a look, this is soemthing very similar and should not be a big problem to recode:

http://www.forexfactory.com/showthread.php?t=109589&page=72

[john225]

Has anyone tested the 3 systems till now?

[san1111]

Hi mograst,

 

I also think it would be very usefull an EA, because there is too much "handy works" at BE. So I'm IN!

[amlo77]

I like the ea idea.. count me in. :)

[⭐ Ormazd]

EA.. Sounds great!

[mograst]

OK guys about the EA, what I like to do is to put trades manually, because to find the best support/resistance may be become complicated and the EA may do wrong entries.

I like to do an EA that managed all trades once they have ben placed manually. In other words, Trader looks for best opportunity of a range and place pending orders manually.

Then just drag&drop the EA (maybe with just 2-3 adjustments to meet some criterias for the particulary trade) an the EA will manage everything. That way you, the trader can find best opportunity and the lets the EA do the stressfull work. Aslo that way you can trade on different pairs same time without hassle.

please PM if interested.

BTW: the EA will be for strategy 3

 

thanks

[kokanal]

I am testing this strategy. Please follow at http://germanstrat.mt4live.com/

 

I am just using the first strategy 1. As one my orders get hit I change the counter orders to double. 2 progression ( in the same time with one with GBPJPY and another with EURJPY) got Sl hit but it turned out even better with my counter orders in. So far so Good. I am using lot of discretion in selecting the range. So if we are planning to make an ea, we should input the range into it after watching the chart and then let EA trade it. Occasionally I have closed orders just close to tp as I saw big resistance and did not want to lose. In hindsight if I had not done that I would have been even more positive.

 

Thanks guys for posting this strat. never felt this confident in forex before.

[fxeasy5]

@mograst,

the EA should be able to place the initial orders after the user defines the Support and Resistance.

Only S and R are needed as input - besides lot-size and options for exit-strategies.

 

As soon as the EA has Support-price-level and Resistance-price-level, the distance between both = range

can be calculated inside the EA.

 

Why placing the initial-orders manually ?

It only confuses the EA.

If the EA is placing these orders, it can number them ( L1 , L2 , L3 etc. ) and use the numbers for the logic.

[joeytrader]

 

...

 

I am using lot of discretion in selecting the range.

 

...

 

Just curious, can you share how you select your range? I understand it may still be more of an art than science, but what do you consider and look out for before you decide what range to trade? After all, selecting a good range may well have won half the battle right there for you already.

[kokanal]

Sure ... Its not a secret at all

 

SO what I look for price hitting atleast 2 times in recent past ie the same day on 15 min tf. If you get a pinbar (needs to touch one time one time only) touching a range think that you have found a gold mine as if it will be breached, it will be breached nicely. Also In my experiments( which are still going) for some reason ranges which are around 60-70 pips are the best on (EJ and GJ). lower ranges are not good too as price whipsaws badly in small ranges. Once price has travelled once or twice in a 60 pip range you know that breakout is going to be major. THis is my humble opinion. Others might have found different ways to select a trade. I would welcome any suggesiton.

 

I hope this helps.

[joeytrader]

Thanks kokanal. I will be following your progress on MT4Live.

 

Just now I notice one of your short for EURJPY just got triggered. I assume that is the S1 for today's EURJPY. Good luck.