Rules Updated 12/03/08
This thread is not about get rich quick, it is about long term sustained growth in a safe trading environment.
This is just something that I am putting out there for you all to take a look at. Let's take a look at the pros and cons.....
Pros
This thread is not about get rich quick, it is about long term sustained growth in a safe trading environment.
This is just something that I am putting out there for you all to take a look at. Let's take a look at the pros and cons.....
Pros
- At a glance I believe that you will always end up a winner trading this system. Eventually the market will hit the t/p target of 200 pips.
- Limited margin usage.
- Long term growth, with minimal input and time needing to be invested
- It is advisable to start with a very small amount of investment capital. Recommend $100-200 USD.
Cons
- Could see a 30% drawdown or more per cycle
- Low risk during most cycles
- Needs to be traded with an EA because of the demand of making a trade every 15M
- Not yet tested as no EA is available at this time.
Rules
- Place Bill Williams Alligator on your chart (my back testing was for the 15M TF on GBPJPY)
- Put the Jaws and the Lips to color none. We will only be using the Teeth of the alligator for this trade
- Whenever the teeth closed in a lower value than the previous closed value, place a sellstop (SS) order 1 pip below the low of that bar.
- Whenever the teeth closed with a higher value than the prevous closed value, place a buystop (BS) order 1 pip + spread above the high of that bar
- Whenever the teeth closed = to the last close, place both a buystop and a sellstop order as per the rules above
- Close all open trades when you have reached a value of 200 pips in profit combined from all open trades.
- After you reach your profit target of 200 pips and you have closed all your open trades, start a new cycle at the close of the current bar, while leaving all your current pending orders in place that have not yet triggered. If a pending order has not triggered within 24 hours from when you opened it, it should be closed
- If you have a day where you have more than 5 consecutive winning cycles in a row in the same day in the same 24 hour period, sit out the next 24 hours as you will more than likely experiece a range that will be too great to want to trade this system
Money Management
- My thoughts were to use .01 mini lots for every $100 in account balance. There are times when you will have many trades open at one time, so you need to keep your risk per open trade as small as possible.
"Keep your eyes on the helpers" - Mr. Rogers