Thread: Channel trading system
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Old 07-06-2006, 08:04 AM
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translation
Quote:
Originally Posted by Oligarh
to newdigital I send you this strategy in rusian in private. Translate corect pease.
Translation:


Quote:
E.L.Naiman in his book "Small Encyclopedia of Trader" (which is well-known for Russian traders) said that professional traders trade from the border of the channel with very tight stop loss. It allows them to get such a big profit that they agree to lose several times in succession. Beginners are trading inside the channel and losing money.

Thus I came this this rading system: we are trading EURUSD, H3 timeframe. To avoid any subjectivity we will use percent channel with Fibonacci levels of 30% and 70%.

The main rules for trading is visible from the image attached.

The rules are the folowing:
After the price came inside the channel (after the price is crossing the borders of the channel - red lines in the image) we open the order on the crossing of 30% or 70% Fibonacci levels (those levels are in red dots in the image). We open order in buy or sell with oposite with the channel border direction. And we close the order on the borders of the channel.

Please note: do not wait until the lossing trade (border of the channel) will be moved into profitable area - just close this trade. And do not wait untill the order with small profit will become a more profitable.
Just close any order on the border of the channel.

My experience.
I forestall the questions: I used ArtSoft chat (not Metatrader) and because of that I wil not post any settings.
I open the order(s) in 2 lots simultaniously, and I agreed to get lossing trades in 100 pips 4 times running. But during the backtesting this system since 1971 I did not get any 100 pips lossing trades 4 times running. It was no more that 3 times running and -215 pips in total only.
Last edited by newdigital; 12-29-2006 at 10:28 AM.
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