SpeedWealthBiz or SWB Trend Trading Strategy

[b.gunn]

Hello All,

 

Thought you maybe interested in this, sorry for the link to another forum, but I believe this thread will give background to these "money grabbers" purporting to be professional traders.

 

I have discovered that the infamous "mentor" Mr Michael Loo is a trader also known as "Bulkbiz" on various forex forums who has not been a very successful trader until getting hold of the Renko EA from MQL Code Base. His system that he and his internet marketeer partner Jeff Yong are peddling is being sold for 4,800 MYR (Malaysian Ringgit). What a nice cash cow!!

 

Here you can find his basic method, witout spending thousands of your hard earned money! I believe the system itself is good, requires patience and good MM, but it is sad to see people selling what is available freely for vast amounts of money on the back of other traders good work!

 

hxxp://www.tradingsystemforex.cOm/expert-advisors-backtesting/677-renko-charts-trader.html

 

Note posts made by Bulkbiz! Exactly matches details provided by Cubicrey!

Edited October 30, 2010 by b.gunn

[JasonKwok]

 

hxxp://www.tradingsystemforex.cOm/expert-advisors-backtesting/677-renko-charts-trader.html

 

Note posts made by Bulkbiz! Exactly matches details provided by Cubicrey!

 

Saw similar post in Forex Factory, but by another name. Maybe they were students of Loo requesting someone to code the EA trading the same strategy, which can be done since the strategy is mechanical. It's sometimes hard to be doing the same thing exactly after 8am (GMT +8) every weekday, unless we are retired like Loo.

 

If you email Jeff Yong talking about programming the strategy into an EA, he will give you one tight slap and ban you from the course ...;-) In his video, he mentioned that the strategy is only 5% of the course, may be you can pay him RM 240 (5% of RM 4800) for the strategy.....or, he also mentioned in the video that he can give it for free....just B.S.

[b.gunn]

Hi Cubicrey,

 

I just noted a new trade on GBPUSD, placed by Mr Loo on his blog hxxp://forextrendalerts.blogspot.com/.

 

I have his system setup as per the notes you provided, but I cannot make sense of why he chose to place a GBPUSD trade where he has and cannot explain a logical reason for his stoploss.

 

His trade is Long at 16045 (11/01) with stop on close below 15728

 

Can you explain how he got the signal for this trade according to his system? According to my charts the trend on GBPUSD has been long since 1.5795, 08 Oct 2010 where the first box turns blue after a small retracement, since then all boxes have been blue to date on the daily chart.....so his latest trade confuses me.......please help !

 

My renko setting are set at 125 pips per box on daily and weekly charts.

[JasonKwok]

Hi Cubicrey,

 

I just noted a new trade on GBPUSD, placed by Mr Loo on his blog hxxp://forextrendalerts.blogspot.com/.

 

I have his system setup as per the notes you provided, but I cannot make sense of why he chose to place a GBPUSD trade where he has and cannot explain a logical reason for his stoploss.

 

His trade is Long at 16045 (11/01) with stop on close below 15728

 

Can you explain how he got the signal for this trade according to his system? According to my charts the trend on GBPUSD has been long since 1.5795, 08 Oct 2010 where the first box turns blue after a small retracement, since then all boxes have been blue to date on the daily chart.....so his latest trade confuses me.......please help !

 

My renko setting are set at 125 pips per box on daily and weekly charts.

 

I've been monitoring the Renko Chart every morning at 8am to understand the behavior of Renko Chart. You need a lot of discipline to wake up early to monitor the Renko chart since it does not base on time.

 

This morning right after 8am (GMT +8 time zone) GBPUSD on the weekly chart has a confirmed Blue brick and on the Daily chart, there was also a confirmed Blue brick, therefore there was an LONG entry.

 

The stop loss is about 125 pips below the low (1.5861) of the current Renko brick. Since the height of a brick is set at 125 pips, the price has to fall 125 pips below the low of the current brick to form a Red Brick which is also a valid exit signal.

 

You might want to use chart from IBFX as M.Loo and his students are using.

 

You need to understand Renko Chart first, in order to fully understand Loo's method. You may want to read the reading material on Renko Chart posted by Cubicrey in an earlier post. Renko chart has no time base. That is why students of M.Loo has to be in front of the computer with chart opened just before 8am in the morning.

 

I got banned from the course by Jeff Yong after I suggested to code the strategy into an EA. He also refuse to reply my email. :-(

Edited November 1, 2010 by JasonKwok

[b.gunn]

JasonKwok,

 

Thanks for your guidance, I understand the methodology of Renko charts quite well, my question was that I cannot see Mr Loo's entry and stoploss figures match what it should be according to his methodology, unless, he is using different points per box or different charts....for example using 125 points per box his stoploss should be around 1.6018 area (not 1.5728) according to my charts.....maybe I am doing something wrong.....I'll keep working at it...Can you send me a picture of your GBPUSD chart for comparison?

 

PS. Sorry to hear you got banned....their loss I guess! Keep up the good work JasonKwok!

Edited November 1, 2010 by b.gunn

[cubicrey]

Hi b.gunn,

 

The Stop loss is placed at 125 x 2 = 250pips away from the Renko value, say now your daily renko is 1.5978, then the SL is 1.5978-0.0250=1.5728. (minus 250pips is for long trade, plus 250 is short trade)

 

According to the rule the trade will be cut off when the opposite color renko brick is confirmed on 00:00, to produce one number of opposite color brick it need 250pips. You could visually test and confirm how the renko works by using the MT4 strategy tester.

 

Additional info: May be your renko reading (Daily TF) is not giving the value 1.5978, it is because the indicator Renko2 is start calculate based on the very first history daily candle from your History data bank which is vary from each of us even though we r using the same broker from the same server. To get exactly the signal from Mr.L is to import his history data into your IBFX platform...

 

Hope this help..

 

Cheers

 

R

Edited November 1, 2010 by cubicrey

[cubicrey]

I've been monitoring the Renko Chart every morning at 8am to understand the behavior of Renko Chart. You need a lot of discipline to wake up early to monitor the Renko chart since it does not base on time.

 

This morning right after 8am (GMT +8 time zone) GBPUSD on the weekly chart has a confirmed Blue brick and on the Daily chart, there was also a confirmed Blue brick, therefore there was an LONG entry.

 

The stop loss is about 125 pips below the low (1.5861) of the current Renko brick. Since the height of a brick is set at 125 pips, the price has to fall 125 pips below the low of the current brick to form a Red Brick which is also a valid exit signal.

 

You might want to use chart from IBFX as M.Loo and his students are using.

 

You need to understand Renko Chart first, in order to fully understand Loo's method. You may want to read the reading material on Renko Chart posted by Cubicrey in an earlier post. Renko chart has no time base. That is why students of M.Loo has to be in front of the computer with chart opened just before 8am in the morning.

 

I got banned from the course by Jeff Yong after I suggested to code the strategy into an EA. He also refuse to reply my email. :-(

 

Hi Jason,

 

Here is the picture I found from their FB, they are beating their own mouth.

http://i630.photobucket.com/albums/uu24/cubicrey/EAnotworking.jpg

 

As their system is fully mechanical thats meant it is able to be replaced by an EA. So, They are implying anyone who trading with their system is need to work also. No wonder they are also working.....

Edited November 1, 2010 by cubicrey

[JasonKwok]

JasonKwok,

 

Thanks for your guidance, I understand the methodology of Renko charts quite well, my question was that I cannot see Mr Loo's entry and stoploss figures match what it should be according to his methodology, unless, he is using different points per box or different charts....for example using 125 points per box his stoploss should be around 1.6018 area (not 1.5728) according to my charts.....maybe I am doing something wrong.....I'll keep working at it...Can you send me a picture of your GBPUSD chart for comparison?

 

PS. Sorry to hear you got banned....their loss I guess! Keep up the good work JasonKwok!

 

The stop loss is based on the price in Renko Chart, not the price chart or entry price. This is because to exit this long trade, a red brick has to be formed on the Renko chart.

 

See attached picture. If too small, please save it to your desktop and open with Photo editor or other software.

 

%5Bimg%5Dhttp%3A//i1181.photobucket.com/albums/x427/jasonkwokfx/20101101-gbpusd-d1.gif[/img]

[JasonKwok]

Hi Jason,

 

Here is the picture I found from their FB, they are beating their own mouth.

 

As their system is fully mechanical thats meant it is able to be replaced by an EA. So, They are implying anyone who trading with their system is need to work also. No wonder they are also working.....

 

I know why Jeff Yong wanted to ban me from the course. If I brought the EA up to M.Loo, then Jeff Yong will lose his job and M.Loo can sell the EA directly through Internet Marketing. He is trying to prevent me from talking face to face with M.Loo. Maybe M.Loo does not know that his strategy could be programmed into an EA. heeeee

 

Thanks for your generosity in sharing this system with us. ;-)

Edited November 1, 2010 by JasonKwok

[cubicrey]

I know why Jeff Yong wanted to ban me from the course. If I brought the EA up to M.Loo, then Jeff Yong will lose his job and M.Loo can sell the EA directly through Internet Marketing. He is trying to prevent me from talking face to face with M.Loo. Maybe M.Loo does not know that his strategy could be programmed into an EA. heeeee

 

Thanks for your generosity in sharing this system with us. ;-)

 

They are snake rat one nest.

[john225]

Did i understand it right

M. Loos system is only a renko chart on D1 and he enters on the close of the day and his setups are like this:

 

Long: If red brick from renko chart turns to blue and the Bar closed at 00:00 (IBFX Chart)

Short: If blue brick from renko chart turns to red and the Bar closed at 00:00 (IBFX Chart)

?

 

john225 ;-)

[JasonKwok]

Did i understand it right

M. Loos system is only a renko chart on D1 and he enters on the close of the day and his setups are like this:

 

Long: If red brick from renko chart turns to blue and the Bar closed at 00:00 (IBFX Chart)

Short: If blue brick from renko chart turns to red and the Bar closed at 00:00 (IBFX Chart)

?

 

john225 ;-)

 

Please read the previous posts by Cubicrey.

[b.gunn]

Many thanks for all your help Cubicrey & JasonKwok. On examining the chart given by JasonKwok, I noticed that the pip per box setting was incorrect on my indicator as I was using a 5-digit broker! Corrected the error and now my chart displays correctly and I can see now the exact price action as you gentlemen described. Problem solved, Thank you both! :-)

[bluewoof]

Today TUE EUR/USD renko brick is red. Wonder why Mr Loo in his blog still holding on this pair???? Should he be closing this trade when renko brick change from blue to red?

[eticon]

Hi b.gunn,

 

First thanks for your spirit of sharing.

I don't have the complete manual, I just received few pieces of paper explaining the entry and exit.

The Basic entry and Exit rule has been explained in my previous posts. The following advanced techniques is also incredible simple just need a little practice to familiar...here you go

 

 

ADVANCED TRADINGIN SYSTEM RULES

 

ENTRY RULES:

============

1. On every Monday after 00:00, identify the Weekly Trend (long term) first.

 

2. On every morning after 00:00, identify the Daily Trend (short term).

Weekly Long + Daily Long = Go Long

Weekly Long + Daily Short = Stand Aside

Weekly Short + Daily Short = Go Short

Weekly Short + Daily Long = Stand Aside

 

Exit Rules - Full (100%) Exit:

==============================

Weekly Long + (Daily Long change to Daily Short) = Close 100% Long positions.

Weekly Short + (Daily Short change to Daily Long) = Clse 100% Short positions.

 

Re-entry Rules:

===============

Weekly Long + (Daily Short change to Daily Long) = Re-enter Long positions

Weekly Short + (Daily Long changr to Daily Short) = Re-enter Short positions

 

Exit Rules-Half (50%) Exit:

===========================

MACD (12, 26, 9) crosses Signal Line in opposite direction, liquidate 50% positions

 

 

Note:

1. The setting of Renko_2 in Weekly chart is the same with Daily Chart, i.e 125 pips. For 5 decimals brokers set to "1250" add one more zero.

 

2. Those broker with Sunday data, the weekly Renko only be confirmed on 00:00 Every Monday, not on the Sunday open time.

3. We only refer to the Weekly renko which is confirmed at 00:00 on every Monday. Any changes after 00:00 Monday shall be ignored.

 

 

let me know if u have any questions...

 

cheers

 

R

 

Hi Cubicrey,

 

Thanks for sharing this promising method here with us. I have two questions and would really appreciate if you can clarify:

 

1. For the advance entry rules, how are the weekly and daily trends determined? Is that by looking at the renko bricks color? If the current weekly renko brick is RED, this mean down trend for the weekly timeframe? Is my understanding correct?

 

2. I am still confused why the renko bricks look different when I switch from daily to weekly time frame. I thought each renko brick is only painted every 125 pips of price move. Therefore, it should be independent of time and changing timeframe should not have any effect on the renko bricks.

 

Please help me to understand. Thanks!

 

Eticon

[cubicrey]

Today TUE EUR/USD renko brick is red. Wonder why Mr Loo in his blog still holding on this pair???? Should he be closing this trade when renko brick change from blue to red?

 

Hi bluewoof,

Yes it shall be closing when the brick change from blue to red, but he hold the long trade is because his daily renko still display the blue brick. What his chart look like today is as following:

1) Daily Renko Brick color = Blue (9 Nos. of bricks), current Renko value=1.3932

2) MACD Daily TF = cross down

3) Weekly Renko color = Blue (8 Nos. of bricks), current Renko value=1.3897

 

Note: set 125pips for 4decimal broker, 1250pips for 5 decimal broker.

 

Renko value may show different value due to different history data available from your existing mt4 program.

 

Cheers

 

R

[cubicrey]

Hi eticon,

 

Thanks for sharing this promising method here with us.

R: I still doubt is this a promising TS, my friend never see their real account statement b4 even though she has requested several times.

 

 

1. For the advance entry rules, how are the weekly and daily trends determined? Is that by looking at the renko bricks color? If the current weekly renko brick is RED, this mean down trend for the weekly timeframe? Is my understanding correct?

R: Yes you are correct, but take note, daily renko is confirmed on 00:00 every trading day. whereas weekly renko is confirmed on every Monday 00:00.

 

2. I am still confused why the renko bricks look different when I switch from daily to weekly time frame. I thought each renko brick is only painted every 125 pips of price move. Therefore, it should be independent of time and changing timeframe should not have any effect on the renko bricks.

R: It looks different in both Daily and Weekly TF is because when you r in Daily TF, the indicator Renko2 is using Daily candle to calculate; when u r in Weekly TF the indicator is using Weekly candles to calculate. Both Daily and Weekly starting candle are in different date with different OHLC price. Press [F2] History Center, look for EU pair, double click the Daily TF, on your right window pan, scroll down to bottom see what is the date of the 1st candle, do the same for weekly TF and compare the date, most probably they are different.

 

 

Hope this help..

 

Cheers

 

R

[bluewoof]

Thanks. My IBFX EUR/USD is display red renko brick today after 9 blue renko. I wonder why? Edited November 2, 2010 by cubicrey

[bluewoof]

I think I know why.... I using IBFX mini account. If you switch to standard account, it's blue renko bar.

[cubicrey]

Thanks. My IBFX EUR/USD is display red renko brick today after 9 blue renko. I wonder why?

 

 

Because the Numbers of data in the History Center is different from yours and Mr.L. His first Daily candle is 2002 Oct 16, Open Price=0.9817. The indicator renko2 start the calculation from this first candle.

 

 

I think I know why.... I using IBFX mini account. If you switch to standard account, it's blue renko bar.

It is not the reason of using mini or std acct, it is bcos of the data available in your History Center as explained above.

 

Cheers

 

R

Edited November 2, 2010 by cubicrey

[bluewoof]

Anyway, at least I now getting the same color bar as what you guy are seeing. One thing confirm, the data feed from ibfx standand and ibfx mini are different.

[JasonKwok]

R: I still doubt is this a promising TS, my friend never see their real account statement b4 even though she has requested several times.

 

Why would they want to take the risk to trade when they are getting risk free income from the course fee? Doubt they really trade.

[digitalman88]

If you read "Sentiment Indicators" that released by Bloomberg, you will learn this method as well. In Bloomberg book, the author recommended box size: 1% and use www.prorealtime.com. Steve Nicolson recommended Metastock.

 

Based on my experience, www.prorealtime.com and metastock produce correct renko if compare to MT4.

 

This trading method has been in Japan for many years. You guys can try the setting recommended by Bloomberg.

[digitalman88]

btw, i had been using this method before Michael Loo promoting this. I learnt this from Steve Nicholson's book. Steve Nicholson also recommended 1% as box size.

[digitalman88]

one thing that Michael Loo doesn't seriously teach is currency correlation. In the original turtle trading, they put emphasis on inter-market correlation to increase probability of success. A lot of people don't know importance of currency correlation.

 

This guy always stated that psychology as the key success factor. Actually, there are more than that.

 

I am using the similar method, but i take currency correlation into consideration before i place any order. Frankly, the result for the past 4 years are encouraging and satisfaction.

Edited November 2, 2010 by digitalman88