Thread: Triggerlines 4H Trading System

Hi,

This system is my own modification of something developed over at Strategybuilderfx.com. I certainly dont take credit for its full development.

It originally started with an indicator called Trend Manager. Here is the thread for its development. I converted it to a different indicator called Trigger Lines, and adopted it for 4H charts and streamlined it to use only one filter indicator called Solar Wind. There was some arguments over at that forum for who took credit for what development. Please everyone, Im not trying to steal anyones thunder or take credit for whats not mine.

http://strategybuilderfx.com/showthr...9&page=15&pp=1

$Trader at that Forum has been using his own modification successfully and even trained others in a dedicated Paltalk room. Im not sure if thats still going on.

This is a Stop and Reverse system that is always in the market. So its 24/7 Positon Trading. Very hard for manual mode, unless you have a Team co-trading it in shifts. I post it here in the hopes the community will be interested in testing and developing it. As far as I know...its already been proven profitable in manual trading, certainly $Trader and his group make a full time living from his version. He uses 3-5 indicators for his system, too many for me. So, I worked hard trying to simplify it and make it workable with only 2 indicators. I will let this community be the final judge, of course, if I have been successful.

As far as I can judge, this system and others similar to it are making 300-500p a week with Trending major currencies. (4-6 used at the same time). Suggested pairs are GBP/USD, GBP/JPY, Euro/USD, Euro/CHF , USD/JPY and USD/CHF. You may want to experiment with others, but keep in mind this system was designed ONLY for trending currencies, those that are naturally ranging such as GBP/EUR wouldnt work at all.

Trigger Lines Trend System
4H Chart, Stop and Reverse


Indicators: Trigger Lines and Solar Wind

Entry

Long
If Trigger Lines indicator is Blue and Solar Wind is >0 (Up)

Short
If Trigger Lines indicator is Red and Solar Wind is <0 (Down)

If trading this system manually, think of the Trigger lines indicator as the primary
Indicator, and look for confirmation from Solar Wind. Sometimes there are false
Too early signals from Triggerlines , but Solar Wind acts as a good filter.

Suggested Money Management. This is just one suggestion. This system can be equally traded well with a 1L or multiple lot entry. There is no need to enter for 2 or 3 Lots, if you prefer a less risky entry of 1L. Consider starting with 1L only and adding to your position at intervals if it’s a very long trend. Study the history of 4H charts, and you will find that some of these trades last 3-5 days for 100s of pips. So, for example..you could add at every 100p gain a 0.5 Lot . Doing so would considerably add to the overall profitability.


2L Entry

Initial Stop Loss : this is a variable. I prefer to use 50p for GBP/USD and GBP/JPY
And 30p for all other major pairs. A SL can be hit with any system. However there are ways to protect yourself. The major danger is a News Release. These are actually predictable. They occur at set, knowable times. Here is a convenient calendar of major news releases. Pay attention to the Red days. These are the ones that have the potential to move the market signifigantly (20, 30, 50…even 100+ pips sometimes such as Non-Farm Day). If the Fundamental News goes Counter trend…usually the SL will get hit.


http://www.forexfactory.com/index.php?page=calendar


Another method that works quite well is to use a variable Stop Loss that is
Set 5p the other side of the previous Trend Low or High. Study the charts yourself
And decide which is the safest most consistent SL for your style of trading.

Lot 1: Initial Take Profit: 50p, (close Lot 1) or close 0.5 L if 1L entery only.

move SL to Break Even.

Lot2: close at change in Trend direction

Notice : this is a Stop and Reverse system, so once you are into the first trade…you are in the market full time. Naturally, this can be traded by anyone if one is willing to wait out a trend change. At that time, one can simply close down fully and go to bed or whatever.

Another way to trade this..Full Time is to use a partner system, Team trading in shifts.

Obviously, the ideal solution would be an Expert Advisor that did all the above in autotrade mode. This is the main reason I post this system in this forum, as is quite famous for its efforts to develop profitable autotrading systems.

Is this system profitable? Yes, absolutely. It’s a proven system that is currently being traded by a small group at Strategybuilderfx. This is simply a simplified version that uses only two indicators. Others use 3-5 indicators and trade the 1H charts. For me that’s just too much confusion. This simplified version everyone can understand and trade.

For those interested , here is the Thread to read about the development of this (and similar) systems. It started off with a slightly different indicator called Trend Manager, but evolved over time. Personally I feel Trigger Line is a better, more consistent indicator and when combined with Solar Wind on the 4H charts offers consistent profits.

http://strategybuilderfx.com/showthr...9&page=15&pp=1

How much can you earn trading this full-time? Well, read this thread and get some idea of its potential. Over at Strategybuilderfx.com $Trader uses a similar system on 1H charts. His system is fully explained there, also for those interested. A couple of individuals did try to create and EA for Trend Manager, but these were not successful.
300-500 p a week trading 4 major currencies is quite doable with the above system trading 3-6 trending pairs simultaenously.


Happy Trading to everyone

Caution: please don’t trade this system or any other Live until you have had a while (month at least) getting comfortable with it. It’s quite a chore to sit out. 4H charts and wait for trend changes. But if you are trading 4-6 major currencies, its not that boring and things do happen often enough to keep your attention alive. .

Efextrader

Hi efextrader, your system is very similar with mine but your filter is looks better. That was my 1st system, I got about 400 pips in 3 weeks (that was 3 months ago) before market gets choppy and eat my profit until about 80 pips only in one week. Then I lose my faith on it (that was my mistake IMO).
How long have you trade with this system? and howmany pips so far?

Rgrds

Just wondering is this solar wind indicator is reliable in real time filetering job? Have you experienced it before?

Hi Devil,

Ive done some backtesting manually mostly. And results seem encouraging. Ive been reading posts from Igor that suggest one should study the most choppy non-trending times, for these are the times trend systems give away profits. I know he is a very experienced trader and system developer. So, I will gladly do as he suggests.

Thats my way of system development. I just try to build a system that takes as much profit as possible
and filters out as many false signals as possible. I used to look at
shorter time frames, but gave up, too much noise for me.

Im still working on this one trying to add more sophisticated filtering.
Ive only been studying forex for 6 months now, so relative to many Senior
member here, Im just a newbie. Nevertheless, I feel its my duty to offer something as my way of contribution to the general effort.

As far as I can see, very little effort is put towards the 4H time frame. For me, its an ideal TF to try and master, as it has less signal noise and is therefore easier to read.

I like 4H too, less noise especially with triggerlines. And we should at least look at the chart once every 4 hours, even in the middle of the night.
Looking forward to see result of your research.

Hi Efex...

Interesting strategy... Did you develope the Solarwind indicator or is that something you found on the forum. I'd like to read up on it if you have any additional information.

Thanks,
Forex2stay

Efextrader,

Thanks for sharing the system.

I am a fan of 4H as well and has been following TrendManager and all its forums everywhere. I liked the idea of a simple profitable 4H indicator from long time ago but as you know TrendManager is not profitable alone and needs some adjustments as you mentioned and did.

I got some questions ,

Does solarwind paint the past? Does it change color many times during the whole 4H period? How about TriggerLines?

When do you exactly stop reverse a trade? Do you wait until a whole 4H candle with a "changed" color of associated indicator is "completely" stablished or you enter as soon as you see a color change anytime? Does this mean that we only have to check the price at the bigining of every 4H period?

Also, in case you have some trade results, I am interested to see them.

Again Thanks...

amin1000

Interesting strategy... Did you develope the Solarwind indicator or is that something you found on the forum. I'd like to read up on it if you have any additional information.

Thanks,
Forex2stay

Forex2stay,

No, I didnt develop Solar Wind indicator myself. It was suggested as a possible filter somewhere, so I tried it. I tried dozens, too. Its the most steady Ive found so far. Its far less twitchy than Triggerlines. If you experiment with Triggerlines on a D1 chart..I think you will see its fine all on its own, no filtering needed for the most part. Filtering is more and more needed the lower the time frame, or so Ive found.

Amin1000

You are welcome. For all those members interested in longer time frame trading, this is a good start. Its very visual and its simple to understand.

As far as I can see, Triggerlines will paint a new signal (red or blue) and then hold on too it until you see a signifigant market move the other way. On 4H charts this might mean 20p. Take a look at some Triggerline charts on the 4H time frame, and you will see a few very small signal lines. But, those are always caused by a sudden market move against the new signal..and continuing the older (previous) trend. Thats where Solar Wind helps. It stays the course and will not signal a reversal easily.

Hope that helps. Just put Solar Wind and Triggerlines up on a 4H chart in a busy market time and watch it yourself. Let me know what u see.

Thank you very much for what appears to be a simple but powerful system. Please do you enter as soon the criteria are met or do you wait until the close of the candle meeting the criteria?