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Complex trading system #17 (305 pips Gig Flexi Hedge System)

Submitted by AtoMoore Timothy

Hi, My name is AtoMoore. I have this system that makes at least 150+pips on daily basis on the EURUSD pair.

I need constructive critics who'll spend time to understand the brain behind my system before commenting. Help make this system a killer and tis for the good of all of us.

My hope is to trade Forex as a full time business..... what's yours?

Version 1.0
Copyright ©2011
You could contact me on
+233 278 1234 40/ tim.doxacapital@yahoo.com

Gig System

Gig flexi hedge system is an intraday strategy that is aggressive for pips. The system offers a flexible way of trading currency by making use of major price support and resistance levels in the market whilst not sacrificing discretion. The system is flexible and this is necessitated by price behavior in the first 7hours of each day. Price behavior in the first7hours of each day presents a variation to be traded for the day (And I’ll talk about these variations soon).

Gig System Trade Setup:

o 15 minutes Chart
o Pivot points calculation
o Trend lines drawing
o Channels
o Moving Average( 50SMA)

How it works:

I use 15minute timeframe because it allows catching the best entry and exits opportunities. Hourly chart for example, when the signal is there is quite too late already to react/enter.
Each morning I start by calculating fresh pivots from midnight to midnight.
I study price behavior in the first 7hours of the day. (Europe/London open around 7.30a.m/8a.m GMT)

What I do before 7amGMT in preparation for the London Open:

o Calculate and place major S/R levels on 15minutes chart.
o Study price behaviour in relation to these levels, Moving Averages, trendlines and the channel that normally forms, between new day break and 7amGMT.(Initial Early Morning Channel- IEMC)
o Check my Forex news calendar @ www.forexfactory.com for upcoming news
o Place predictive trades using pending order and occasionally market order depending upon price behaviour between new day break and 7amGMT.
o

Price behaviour between new day break and 7amGMT:

o Where did price open in relation to the PP (pivot point), above or below? The answer to this provides the first clue to traders biases for the day.

o Did market smile a good morning @ Long trade for the day? [If market opened up above @ PP or a small distance away, up above PP, I look for opportunity to go long for the day.]

o Is price above moving average?

o Did market smile a good morning @ Short trade for the day? [If market opened down below @ PP or a small distance away, down below PP, I look for opportunity to go short for the day.]

o Is price below moving average?

o Did market exactly open @ PP or away from PP?

o Market has opened a little away from pivot. Now has price pulled back to PP?

o May be it hasn’t pulled back between this time under consideration. Price may pullback to PP later in the day. Now can you put price in a range, a channel (IEMC)? I found out this range could persist and could be traded. (Initial Early Morning Channel Strategy)

o Has price zigzagged along PP? How big is the range? Can you put a channel on it?

The above chart is a EURUSD 15 minute chart illustrating how price behaved from daybreak to 7amGMT on the Wednesday 21st July2010.

Pivot and Major S/R obtained by virtue of data from previous day include: R3=1.3184, R2=1.3105, R1=1.2995, PP=1.2916, S1=1.2806, S2=1.2727 S3=1.2617.

As you can see, the dotted line represents midnight/Daybreak of previous day/new day, 20th/21st July 2010.

The vertical aqua line represents 7amGMT, i.e 7hrs after new daybreak.
Can you see price behaviour between these times? Price is in a channel of 34pips (purple to purple) .This is my Initial Early Morning Channel. I will illustrate how I trade such channels under my Initial Early Morning Channel strategy in one of my variations.

Can you now predict with some certainty the direction of price from here?
This is a case for my strategy VARIATION 1A, and I’ll be showing how to trade this.

VARIATION 1A

I have a variation1A case when ,as in chart 1.0, market opens below price from dawn of new day, stays in some consolidation sort of up to like 7amGMT, thereby price, forming a tradable channel(IEMC) for our strategy(20pips +).

If a new day passes as a candidate for variation1A, I trade the following strategies:

A. Initial Early Morning Channel strategy
B. Pivot level strategy
C. Appropriate Major S/R level strategy (This strategy is sometimes delayed, as price normally must make some journey into the day to validate the strategy at this level.)

Looking at chart1.0, I will place the following trades:

A. Initial Early Morning Channel strategy

@lowerBand of Channel:

1) Buy Limit : Entry Price = 1.2874
Profit Target = 1.2906 (@ UpperBand of Channel)
Profit = +32pips
2) Sell Stop : Entry Price = 1.2874
Profit Target = 1.2806 (@ S1)
Profit = +68pips

@UpperBand of Channel:

3) Sell Limit : Entry Price = 1.2906
Profit Target = 1.2874 (@ LowerBand of Channel)
Profit = +32pips
4) Buy stop : Entry Price = 1.2914 i.e(1.2906+8pips)
Profit Target = 1.2956 i.e (Midway b/n PP and R1)
Profit = +42pips

B. Pivot level strategy

5) Sell Limit : Entry Price = 1.2908 i.e (1.2916-8pips)
Profit Target = 1.2806 (@ S1)
Profit = +102pips
6) Buy stop : Entry Price = 1.2924 i.e(1.2916+8pips)
Profit Target = 1.2956 i.e (Midway b/n PP and R1)
Profit = +32pips

C. Appropriate Major S/R level strategy ( S1 Level in This Case)

7) Sell Stop: Entry Price = 1.2806i.e (S1)
Profit Target = 1.2735 (@ S2+8pips)
Profit = +71pips

All of these trades would have yielded:

Total Profits: (+32pips + 68pips + 102pips + 32pips + 71pips) = +305pips

+42pips from Buy Stop @ UpperBand IEMC Strategy and +32pips from Buy Stop Pivot Level Strategy were not recorded as these trades did no get triggered.

The chart below chart1.1 shows the trade as it happened……………………………………

ON MONEY MANAGEMENT FOR THIS STRATEGY:

MONEY MANAGEMENT

With Instaforex / With Other Brokers

1 mini lot size = (1pip) = $1 / 1 standard lot size = (1pip) = $10
i.e, 100 pips = $100 / i.e, 100 pips = $1000
=> $20/$100 = 0.2 lot size etc / => $20/$1000 = 0.02 lot size etc

Probability of getting a market sentiment right = 50%.
Ten (10) trades, @ least, will be placed.
Usually Probability of triggered trades = 8/10 = 80%.
Risk/Reward = No.Win/No.Loss = 5/3 = 166.67%

I double lot sizes for trades in the direction of market sentiment for the day. Say,For trades on $500, I’ll use a lot size of 0.40 = 2*(0.20) on Instaforex but 0.04 lot size on other standardized account type Broker Platforms.

I use single lots for trades placed in opposite direction to market sentiment of the day.
Say, For $500, I’ll use a volume of 0.20 on Instaforex but 0.02 on other standardized account type Broker Platforms.

Gig flexi-hedge system comes with varying degrees of TP sizes, dictated by the the outcome of the distances between pivot points so plotted on the chart.

My 5 WINS = say, 20pips 20pips 20pips 50pips 50pips, to say the least.

I’ll trade daily, full time, two times in a week.

Daily ROI : 13%(double lot) and 6%(single lot)
Weekly ROI : 27%(double lot) and 13%(single lot)
Monthly ROI : 102%(double lot) and 51%(single lot)

You can modify some parameters for your own tolerable expectations.

This system has so many variations depending upon price behaviour from break of new day. This is just one variation. subsequent ones will follow shortly.

Hope I get good critics.

AtoMoore
tim.doxacapital@yahoo.com

Hi,

Can you explain more clearly on how you get R1, R2, R3, S1, S2 and S3? It's not stated anywhere on how you derive these points.
Also at which part did you derive PP value? Every bar has a Pivot calculation but based on this chart which u given, how u derive the PP at 1.2906?
These charts were 2010's, how is this strategy applied to the current 2011 as in today, 30th May 2011?

I would like to know if this strategy works until today and forward?

Hi AtoMoore,
very nice strategy. I have 2 guestions:
- are you always use 8 pips as a distance from PP ? (@ S2+8pips)
- can you show anothers variants ?

Thanks
Stefan

Hi Atomore,
seems like nice strategy . i have few question/
1. how long have been using this strategy
2. what is your success rate using this strategy
3. can you show another variants? such as today's session

please could you tell me where i can download IEMC channels? i dont know where to download them :s

IMEC is to be drawn looking at the low and high of the first 7 hours candles manually. I am however curious about the SL settings for these entries.BTW do you consider the 00 hrs candle too for HL? any suggestions appreciated.

Cheers,

BN

What stop loss do you use per trade?

good job buddy!!!!!!!!!!

Nice strategy. Simply but not very clear.

For entry in the "C. Appropriate Major S/R level strategy", do you put another sell stop unattended because you can not always be controlled if you have exceeded the support line?

To calculate the lines of support / resistance there are several indicadoder in Metatrader. I step one: Daily Pivot Points.mq4 . It have intermediate levels between supports/resistances:

//+------------------------------------------------------------------+
//| DailyPivotPoints.mq4 |
//| Copyright © 2005, MetaQuotes Software Corp. |
//| http://www.metaquotes.net |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, MetaQuotes Software Corp."
#property link "http://www.metaquotes.net"

#property indicator_chart_window
#property indicator_buffers 2
#property indicator_color1 Blue
#property indicator_color2 Red
//---- input parameters
extern int ExtFormula=0;
extern int ExtHowManyDays=30;
extern bool ExtDraw=true;
//---- buffers
double ExtMapBuffer1[];
double ExtMapBuffer2[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,ExtMapBuffer1);
SetIndexEmptyValue(0,0.0);
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(1,ExtMapBuffer2);
SetIndexEmptyValue(1,0.0);
//---- clear buffers when reinitializing
if(ArraySize(ExtMapBuffer1)>0) ArrayInitialize(ExtMapBuffer1,0.0);
if(ArraySize(ExtMapBuffer2)>0) ArrayInitialize(ExtMapBuffer2,0.0);
//---- set labels for DataWindow
if(ExtDraw)
{
if(ExtFormula==0)
{
SetIndexLabel(0,"Pivot");
SetIndexLabel(1,NULL);
}
else
{
SetIndexLabel(0,"Resistance");
SetIndexLabel(1,"Support");
}
}
else
{
SetIndexLabel(0,NULL);
SetIndexLabel(1,NULL);
}
//---- force daily data load
iBars(NULL,PERIOD_D1);
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//---- deleting our lines
ObjectDelete("Pivot_Line");
ObjectDelete("R0.5_Line");
ObjectDelete("R1.0_Line");
ObjectDelete("R1.5_Line");
ObjectDelete("R2.0_Line");
ObjectDelete("R2.5_Line");
ObjectDelete("R3.0_Line");
ObjectDelete("S0.5_Line");
ObjectDelete("S1.0_Line");
ObjectDelete("S1.5_Line");
ObjectDelete("S2.0_Line");
ObjectDelete("S2.5_Line");
ObjectDelete("S3.0_Line");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int counted_bars=IndicatorCounted();
int begin_bar, first_bar, last_bar, cnt;
double yesterday_high, yesterday_low, yesterday_close, today_open;
double P, S, R, S05, R05, S10, R10, S15, R15, S20, R20, S25, R25, S30, R30;
//---- test parameters
if(ExtFormula<0 || ExtFormula>3) return(-1);
if(Period()>=PERIOD_D1) return(-1);
//---- if daily data not loaded yet
cnt=0;
while(true)
{
if(iTime(NULL,PERIOD_D1,0)>=(Time[0]-PERIOD_D1*60)) break;
cnt++;
if(cnt>5) return(0);
Sleep(1000);
}
//---- set check beginning
if(ExtHowManyDays<1) begin_bar=iBars(NULL,PERIOD_D1)-2;
else begin_bar=ExtHowManyDays-1;
//---- case of recounting current pivot only
if(ExtDraw==false || counted_bars>0) begin_bar=0;
//----
for(cnt=begin_bar; cnt>=0; cnt--)
{
yesterday_close=iClose(NULL,PERIOD_D1,cnt+1);
today_open=iOpen(NULL,PERIOD_D1,cnt);
yesterday_high=iHigh(NULL,PERIOD_D1,cnt+1);
yesterday_low=iLow(NULL,PERIOD_D1,cnt+1);
P = (yesterday_high + yesterday_low + yesterday_close + today_open) / 4;
switch(ExtFormula)
{
case 1 :
R = P + P - yesterday_low;
S = P + P - yesterday_high;
break;
case 2 :
R = P + yesterday_high - yesterday_low;
S = P - yesterday_high + yesterday_low;
break;
case 3 :
R = P + P - yesterday_low - yesterday_low + yesterday_high;
S = P + P - yesterday_high - yesterday_high + yesterday_low;
}
if(ExtDraw==true)
{
first_bar=iBarShift(NULL,0,iTime(NULL,PERIOD_D1,cnt))-1;
if(cnt>0) last_bar=iBarShift(NULL,0,iTime(NULL,PERIOD_D1,cnt-1))-1;
else last_bar=0;
while(first_bar>=last_bar)
{
if(first_bar==last_bar && last_bar>0) break;
if(ExtFormula==0) ExtMapBuffer1[first_bar]=P;
else
{
ExtMapBuffer1[first_bar]=R;
ExtMapBuffer2[first_bar]=S;
}
first_bar--;
}
}
}
P = NormalizeDouble((yesterday_high + yesterday_low + yesterday_close)/3,Digits);

R10 = NormalizeDouble((2*P)-yesterday_low,Digits);
S10 = NormalizeDouble((2*P)-yesterday_high,Digits);

R05 = NormalizeDouble((P+R10)/2,Digits);
S05 = NormalizeDouble((P+S10)/2,Digits);

R20 = NormalizeDouble(P+(yesterday_high-yesterday_low),Digits);
S20 = NormalizeDouble(P-(yesterday_high-yesterday_low),Digits);

R15 = NormalizeDouble((R10+R20)/2,Digits);
S15 = NormalizeDouble((S10+S20)/2,Digits);

R30 = NormalizeDouble(2*P+(yesterday_high-2*yesterday_low),Digits);
S30 = NormalizeDouble(2*P-(2*yesterday_high-yesterday_low),Digits);

R25 = NormalizeDouble((R20+R30)/2,Digits);
S25 = NormalizeDouble((S20+S30)/2,Digits);

ObjectCreate("Pivot_Line", OBJ_HLINE, 0, 0, P);
ObjectSet("Pivot_Line", OBJPROP_COLOR, Yellow);
ObjectSet("Pivot_Line", OBJPROP_STYLE, STYLE_SOLID);
ObjectSetText("Pivot_Line","Pivot "+DoubleToStr(P,Digits));

ObjectCreate("R0.5_Line", OBJ_HLINE, 0, 0, R05);
ObjectSet("R0.5_Line", OBJPROP_COLOR, GreenYellow);
ObjectSet("R0.5_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("R0.5_Line","R0.5 "+DoubleToStr(R05,Digits));

ObjectCreate("R1.0_Line", OBJ_HLINE, 0, 0, R10);
ObjectSet("R1.0_Line", OBJPROP_COLOR, YellowGreen);
ObjectSet("R1.0_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("R1.0_Line","R1.0 "+DoubleToStr(R10,Digits));

ObjectCreate("R1.5_Line", OBJ_HLINE, 0, 0, R15);
ObjectSet("R1.5_Line", OBJPROP_COLOR, GreenYellow);
ObjectSet("R1.5_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("R1.5_Line","R1.5 "+DoubleToStr(R15,Digits));

ObjectCreate("R2.0_Line", OBJ_HLINE, 0, 0, R20);
ObjectSet("R2.0_Line", OBJPROP_COLOR, YellowGreen);
ObjectSet("R2.0_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("R2.0_Line","R2.0 "+DoubleToStr(R20,Digits));

ObjectCreate("R2.5_Line", OBJ_HLINE, 0, 0, R25);
ObjectSet("R2.5_Line", OBJPROP_COLOR, GreenYellow);
ObjectSet("R2.5_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("R2.5_Line","R2.5 "+DoubleToStr(R25,Digits));

ObjectCreate("R3.0_Line", OBJ_HLINE, 0, 0, R30);
ObjectSet("R3.0_Line", OBJPROP_COLOR, YellowGreen);
ObjectSet("R3.0_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("R3.0_Line","R3.0 "+DoubleToStr(R30,Digits));

ObjectCreate("S0.5_Line", OBJ_HLINE, 0, 0, S05);
ObjectSet("S0.5_Line", OBJPROP_COLOR, Salmon);
ObjectSet("S0.5_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("S0.5_Line","S0.5 "+DoubleToStr(S05,Digits));

ObjectCreate("S1.0_Line", OBJ_HLINE, 0, 0, S10);
ObjectSet("S1.0_Line", OBJPROP_COLOR, Salmon);
ObjectSet("S1.0_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("S1.0_Line","S1.0 "+DoubleToStr(S10,Digits));

ObjectCreate("S1.5_Line", OBJ_HLINE, 0, 0, S15);
ObjectSet("S1.5_Line", OBJPROP_COLOR, Salmon);
ObjectSet("S1.5_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("S1.5_Line","S1.5 "+DoubleToStr(S15,Digits));

ObjectCreate("S2.0_Line", OBJ_HLINE, 0, 0, S20);
ObjectSet("S2.0_Line", OBJPROP_COLOR, Salmon);
ObjectSet("S2.0_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("S2.0_Line","S2.0 "+DoubleToStr(S20,Digits));

ObjectCreate("S2.5_Line", OBJ_HLINE, 0, 0, S25);
ObjectSet("S2.5_Line", OBJPROP_COLOR, Salmon);
ObjectSet("S2.5_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("S2.5_Line","S2.5 "+DoubleToStr(S25,Digits));

ObjectCreate("S3.0_Line", OBJ_HLINE, 0, 0, S30);
ObjectSet("S3.0_Line", OBJPROP_COLOR, Salmon);
ObjectSet("S3.0_Line", OBJPROP_STYLE, STYLE_DOT);
ObjectSetText("S3.0_Line","S3.0 "+DoubleToStr(S30,Digits));
//---- force objects drawing
ObjectsRedraw();
//----
return(0);
}
//+------------------------------------------------------------------+

Cheers,

Navar