I've been experimenting with Sniper Forex Trading System for some time and recently, i came up with a reliable way of using it that have been quite profitable for me.
Firstly, here are the components of my trading method
1. Support and Resistance Levels or Zones
2. Trend Determination and market sentiment ( I use sniper forex for this one)
3. Momentum (probability meter)
Next, I will talk about the theories behind my methods.
1. Buy at Support in an Up Trend and Sell at Resistance in a Down Trend.
For a valid Buy signal with the sniper forex system using the 15 mins time frame,
A. Draw your support and resistance lines using the 15 mins chart of your chosen currency pair
B. Wait for all 3 sniper lines plus at least one of either sniper trend A and B to turn blue.
C. You will notice that by the time all sniper lines have turned blue, price would have started moving upwards, don't enter yet. wait for price to pull back to the nearest support level or support zone on your 15 mins chart. When this happens, you will notice that one of sniper trend A or B will turn red. This should not bother you as long as it is just one of them. As price approaches the nearest support line/zone, quickly place a buy order, you can also use a buy limit order. Place your stop loss at least 35 pips behind the nearest support. This gives you a very high probability entry and also helps you protect your stoploss with a support level acting as a shield. Never use buy stop or sell stop order as this will amount to you chasing price action which almost always results in your stop loss being hit. Once Price is 15 pips in your favor, move your stoploss to break even you can use a 15 pip trailing stop if you like.
D. Before I talk about take profit targets, let me say this, I use 2 sets of support and resistance levels.
The first one is plotted for me automatically by an auto pivot calculator that shows R3 - S3 and also shows mid pivots.
The second one is Support and Resistance level identified by myself as price moves and then retraces.
I use these supports that I personally identify to place buy orders once the sniper forex indicators are all blue in color. I only place buy orders if sniper indicators are blue and no sell orders at all and vice versa because I want to be at the correct side of market sentiment in case of sudden parabolic price movements.
I also use these personally identified Resistance levels to place Sell orders only, once all the sniper forex
indicators turn red.
E. Take profit targets.
I use the support and resistance levels generated for me automatically by my auto pivot calculator for my profit targets.
F. Momentum
Sometimes price action becomes so volatile that it starts moving with a lot of momentum. When this happens, we experience what is known as parabolic price movements. ie when price moves up or down in almost long straight lines. This phenomenon is easily seen on the probability meter which in my opinion is the most powerful momentum indicator in existence. Once the probability meter show 90% - 100% probability, no support or resistance level can prevent price from moving where it is headed.
If you are already in a trade that is the same direction with the sniper forex indicators, and all of a sudden, the probability meter starts showing over 90% sell or buy probability, simply remove your take profit target and use a 15 pip trailing stop to trail your order. if you get stopped out, wait for price action pull back or retrace to a support or resistance level before re-entering the market in the direction of all sniper forex indicators. Don't ever forget to put a 35 pip stop loss.
For better trades make sure that there is at least 50 pips between you entry and the nearest take profit level so as to ensure at least 1:1.5 risk reward ratio.
Never risk more that 3.5% of your whole capital on one single trade. eg If you have $100, use 0.01 volume
and use 35 pips stoploss. Target at least 50 pips.
If you get stopped out, you lose 35 pips or $3.50 If you win, you will gain 50 pips or $5.00
The most common problems I have encountered with the Sniper Forex is this, Too much reliance on the Sniper forex indicators can be deceiving sometimes, especially near S3 and R3 levels and other trend reversal points. I simply look out for double tops or bottoms, 123 tops or bottom and also head and shoulders and inverse head and shoulders especially after a lengthy daily price movement to asist me in spotting trend reversals. Also I look at the 4 hour chart to spot overall price direction.
Jumat, 23 Oktober 2009
Doubled my Live Account (Loong Post)
Some of you might be recalling a thread I posted a few weeks back. I was starting out with Forex then since I had some spare money to invest.
I tried Demo Trading for a week or so, and when I figured I had got the hang of it, I switched to live. Most of the people here at IJ recommended that I do demo first for atleast 6 months (!), and then switch to live. However, I went live immediately after a week of demo trading since I was confident I would NOT lose.
I invested $250 initially on June 9th, and today my account stands just shy of $500. At the most, I traded 3 days in a week. Whenever I had free time and was not in the mood to trade, I would just watch the market, not trade. Here's a screenshot of my account:
I hear a lot of people in the Forex world who recommend trading for atleast 6-9 months before putting in your real money. Further more, they even say starting with a $250 account is a super-bad idea.
That's not the case everytime though. I traded in mini (10k) lots, and once I was as close as to being 2 pips short of a margin call (I rarely used stop losses). However, I had watched the market long enough to say I was going to win, and sure enough - I did.
My tip (I'm no pro) to anyone who's starting out with Forex is this: Read guides, listen to people, but at the end of the day - do what you really feel will work for you. From my experience in Internet Marketing, one thing I can say with confidence is that STOP thinking that the more guides you download, the more money you'll make. They wont. The only thing they'll do for you is confuse you so much, that you'll dread taking action. In all - I just read BabyPips (to get a hold on the basics), and a 26-point forex guide shared in here.
To other forex guys, I didn't use indicators, no stop losses, traded in mini-lots on a $250 account, and worst of all - I opened an account with a Market Maker (GFT). I did almost everything opposite of what people in the Forex industry with years of experience told me to, but I still haven't lost my shirt. (yet! :P)
The next thing I'm going to do is get my initial investment out, so that then I can start trading with money I've earned from trading. :P
PS: The reason I think demo trading for 6 months is a bad idea is this: Trading on DEMO is way different than trading in REAL. Your approach is absolutely different, since you're investing your hard-earned money. You'll be ten times more cautious while placing a trade on a REAL account than you would in a DEMO one. Plus, if you trade DEMO for a long period of time, the only thing you've gained is a bit of Forex knowledge. You haven't gained any experience though, since when you actually would go REAL, you'll know why it is so different. My suggestion is that start Forex only if you have money just sitting in your account, and you really wont go insane if you lost that.
I tried Demo Trading for a week or so, and when I figured I had got the hang of it, I switched to live. Most of the people here at IJ recommended that I do demo first for atleast 6 months (!), and then switch to live. However, I went live immediately after a week of demo trading since I was confident I would NOT lose.
I invested $250 initially on June 9th, and today my account stands just shy of $500. At the most, I traded 3 days in a week. Whenever I had free time and was not in the mood to trade, I would just watch the market, not trade. Here's a screenshot of my account:
I hear a lot of people in the Forex world who recommend trading for atleast 6-9 months before putting in your real money. Further more, they even say starting with a $250 account is a super-bad idea.
That's not the case everytime though. I traded in mini (10k) lots, and once I was as close as to being 2 pips short of a margin call (I rarely used stop losses). However, I had watched the market long enough to say I was going to win, and sure enough - I did.
My tip (I'm no pro) to anyone who's starting out with Forex is this: Read guides, listen to people, but at the end of the day - do what you really feel will work for you. From my experience in Internet Marketing, one thing I can say with confidence is that STOP thinking that the more guides you download, the more money you'll make. They wont. The only thing they'll do for you is confuse you so much, that you'll dread taking action. In all - I just read BabyPips (to get a hold on the basics), and a 26-point forex guide shared in here.
To other forex guys, I didn't use indicators, no stop losses, traded in mini-lots on a $250 account, and worst of all - I opened an account with a Market Maker (GFT). I did almost everything opposite of what people in the Forex industry with years of experience told me to, but I still haven't lost my shirt. (yet! :P)
The next thing I'm going to do is get my initial investment out, so that then I can start trading with money I've earned from trading. :P
PS: The reason I think demo trading for 6 months is a bad idea is this: Trading on DEMO is way different than trading in REAL. Your approach is absolutely different, since you're investing your hard-earned money. You'll be ten times more cautious while placing a trade on a REAL account than you would in a DEMO one. Plus, if you trade DEMO for a long period of time, the only thing you've gained is a bit of Forex knowledge. You haven't gained any experience though, since when you actually would go REAL, you'll know why it is so different. My suggestion is that start Forex only if you have money just sitting in your account, and you really wont go insane if you lost that.
Learn something difficult and earn real money for ever, a lot.
Hello,
I am following trhis method for 4 months now and I see people making money and you can touch the results.
In two words identify the moments banks are making money in the FX spot and take you share.
Devote I hour and see with your eyes.The first half hour of the londonn session and the first half hour of the New York session.
The method was so succesfull (started in July 2007 in forex factory )the invendor of the method started a forum 2 weeks ago and has 270 members today.
No need to buy anything everything free.
Just hard work,reading and screen time.
The succesfull thread in FF :
His scalping club:
Cheers
I am following trhis method for 4 months now and I see people making money and you can touch the results.
In two words identify the moments banks are making money in the FX spot and take you share.
Devote I hour and see with your eyes.The first half hour of the londonn session and the first half hour of the New York session.
The method was so succesfull (started in July 2007 in forex factory )the invendor of the method started a forum 2 weeks ago and has 270 members today.
No need to buy anything everything free.
Just hard work,reading and screen time.
The succesfull thread in FF :
Quote:
| forexfactory.com/showthread.php?t=52515 |
Quote:
| cyrox.com/forum/index.php |
THE REAL MONEY MAKING MACHINE(real thing)
The following is the interview of an Ukranian who won the 2007 champion in autotrading.
What is autotrading ?You feed an account with money and the sw runs and place trades and close positions without human intervention(money machine)
His machine made 130.475 $ in a year.Do you like now to compare this money machine with those of the hyped gurus ?
Can you find this EA ? Please post it or send it to me by pm, it will be a 20kb file,lol
The interview:
Interview with Olexandr Topchylo (Better)
Olexandr Topchylo (Better) is an experienced trader. He is Cand. Sc. (Physics and Mathematics), and this helps him develop trading systems. He performed unsuccessfully in the last-year Championship, but that failure was the making of him. Olexandr learned his lesson and became the leader of Championship 2007 with a huge equity!
Hello, Olexandr. Could you tell us a little about yourself? When and how did you start trading?
I'm 41 and Cand. Sc. (Physics and Mathematics), so I had all necessary foundations for trading. I've been trading forex for one and a half years. However, I have traded binary options on currency for three years. Methods forecasting currency exchange rate changes are absolutely the same for both spheres of trading, so I did not have to retrain myself.
When and for what reason did you become interested in automated trading? What are your achievements in this field?
I wanted to automate trading even when I was trading options. I opened 15-20 positions daily, and I had to do it all manually. However, that trading platform did not allow automated trading, unfortunately. When went to forex, I decided immediately that I would only trade on a platform that enables automated trading. So MetaTrader met my needs ideally.
In summer 2006, I saw an advertisement for Automated Trading Championship 2006 and decided to learn MQL4 and try to participate in it. Fortunately, I code well in С++, so I wrote the first Expert Advisor in MQL4 within a week. Using that EA, I won a traders' contest conducted on demo accounts in one of Brokerage Companies.
I wrote the second EA especially for ATC'2006. However, my experience was insufficient as related to what the difference is between testing and real conditions. This is why my EA contained some errors and took only the 113th place.
Talking of Championship 2006, your Expert Advisor traded three currency pairs that time - EURUSD, GBPUSD and USDJPY. The trading was profitable for only one of them, while two other pairs were weighting your deposit down. This time, your EA trade only one pair, EURUSD. Have you concluded that it is better to trade only one pair?
I have an absolutely different system this year. It has nothing in common with the last-year one. It works on EURUSD best of all.
You EA made over 900 trades during Championship 2006. Your present EA has closed 144 positions within the first month of the contest. So we can say that your new strategy trades very actively, too. Or has your approach changed all the same?
Yes, it has. The last-year system can be called scalping. However, I have revised my position towards this trading technique since that Championship. My present system is based on absolutely different principles. The real number of my trades at the present Championship can be with every reason divided by three, since I'm using three strongly correlated subsystems. Thus, it makes approximately two trades per day. Not too much.
Summarizing your participation in ATC'2006, could you tell us what it has taught you? What conclusions have you made and what exactly has influenced them?
First of all, it taught me that the results of scalping EAs may be as different as day and night in Tester, on a demo account or in real trading, as well as they are different for different brokers. So such strategies are unfit for a long-term and stable trading forex.
You wrote on your Participant's page that you were using neural networks in your EA. How complicated is such an EA? What is more difficult to create - an optimal neural network or the Expert Advisor's algorithm?
A neural network that forecasts the changes in exchange rates and a trading algorithm are inseparable, they belong each other. Indeed, the Expert Advisor is very complicated. This trading system was first developed in С++, tested and optimized. Only after that, it was re-written in MQL4 and debugged.
Olexandr, why did you write the program in С++ and then re-write in MQL4?
MQL4 will, for objective reasons, will never be able to compete with C++ in performance, whereas the program operating speed is a very important factor for neural networks. However, there is a more important thing - debugging means available in С++. This accelerates coding of complicated programs.
What do you input in a neural network: indicator readings or a certain set of prices on a certain interval/timeframe?
Readings of indicators developed especially for this trading system. I won't give more details now. The only thing I can say is that they combine some moving averages.
You informed above that your EA consisted of three subsystems. Is it an implementation of the so-called "committee of neural networks"?
No, it is not a "committee". These are three independent subsystems. No one of them "sees" what other subsystems are doing. Committee of neural networks can be a possible development of my EA in future.
After having optimized my trading system's Strategy Tester, I obtained a parameter space where the system produced good results. And, in order not to put all my eggs in one basket, I took from this space three sets of parameters to be optimized. I allocated 1/3 of the deposit for each subsystem at the very beginning. So each subsystem defines the volume of trades according to "its" balance.
Although the subsystems correlate strongly, I managed to achieve some diversification. Well, in a case one of the subsystems starts to lose its deposit for some reasons, two others can get the account out of losses.
Your EA opens positions with preset levels of Stop Loss and Take Profit, but the most of them are closed "by market". What is the reason for this: Does the position holding time run out or do the conditions of position opening "spoil"?
No, it has no relation to the time at all. Positions are closed when the probability of opposite trend increases.
Do you find this probability using moving averages?
Yes, I do. A certain set of moving averages is processed by a neural network. Then the neural network gives a forecast.
The position holding time average of your EA made a little more than 8 hours in October. Multiplying 144 orders by 8 hours and dividing the result by 24 hours (the duration of a day), we can see that your Expert Advisor had been "in the market" for 48 days in October. However, there were only 23 trade days in October. So it is no wonder that your EA was "in the market" practically all the time. Was it your purpose or is it a random side effect of optimization?
Well, it would be just too boring for me to observe my EA that is out of the market most of the time. It's a joke, of course. However, it was not my purpose, it happed so.
Do you visit other Participants' reports? Do statistical data on Participants' pages help you in any way?
Of course, I visit them and look through with much interest. The reports are very informative. The first thing I look at is the balance curve. It can provide you with 80% of information you need. Then I read the data - maximal drawdown, Profit Factor, etc.
In the Participants table, I would add the total volume, direction and currency of the current trades for each Participant to make it more illustrative.
Olexandr, who of your competitors could pretend to take Top Three places, in your opinion?
Locations of the most Participants change so rapidly in the table that I find difficulty in naming real candidates.
Let's imagine that you have won. How would you dispose your prize money, if it is not a secret?
There is no secret at all: I never estimate expenditures before I gain income.
Thank you very much for your interview, Olexandr. We wish you much success in automated trading.
What is autotrading ?You feed an account with money and the sw runs and place trades and close positions without human intervention(money machine)
His machine made 130.475 $ in a year.Do you like now to compare this money machine with those of the hyped gurus ?
Can you find this EA ? Please post it or send it to me by pm, it will be a 20kb file,lol
The interview:
Quote:
| championship.mql4.com/2007/news/303 |
Olexandr Topchylo (Better) is an experienced trader. He is Cand. Sc. (Physics and Mathematics), and this helps him develop trading systems. He performed unsuccessfully in the last-year Championship, but that failure was the making of him. Olexandr learned his lesson and became the leader of Championship 2007 with a huge equity!Hello, Olexandr. Could you tell us a little about yourself? When and how did you start trading?
I'm 41 and Cand. Sc. (Physics and Mathematics), so I had all necessary foundations for trading. I've been trading forex for one and a half years. However, I have traded binary options on currency for three years. Methods forecasting currency exchange rate changes are absolutely the same for both spheres of trading, so I did not have to retrain myself.
When and for what reason did you become interested in automated trading? What are your achievements in this field?
I wanted to automate trading even when I was trading options. I opened 15-20 positions daily, and I had to do it all manually. However, that trading platform did not allow automated trading, unfortunately. When went to forex, I decided immediately that I would only trade on a platform that enables automated trading. So MetaTrader met my needs ideally.
In summer 2006, I saw an advertisement for Automated Trading Championship 2006 and decided to learn MQL4 and try to participate in it. Fortunately, I code well in С++, so I wrote the first Expert Advisor in MQL4 within a week. Using that EA, I won a traders' contest conducted on demo accounts in one of Brokerage Companies.
I wrote the second EA especially for ATC'2006. However, my experience was insufficient as related to what the difference is between testing and real conditions. This is why my EA contained some errors and took only the 113th place.
Talking of Championship 2006, your Expert Advisor traded three currency pairs that time - EURUSD, GBPUSD and USDJPY. The trading was profitable for only one of them, while two other pairs were weighting your deposit down. This time, your EA trade only one pair, EURUSD. Have you concluded that it is better to trade only one pair?
I have an absolutely different system this year. It has nothing in common with the last-year one. It works on EURUSD best of all.
You EA made over 900 trades during Championship 2006. Your present EA has closed 144 positions within the first month of the contest. So we can say that your new strategy trades very actively, too. Or has your approach changed all the same?
Yes, it has. The last-year system can be called scalping. However, I have revised my position towards this trading technique since that Championship. My present system is based on absolutely different principles. The real number of my trades at the present Championship can be with every reason divided by three, since I'm using three strongly correlated subsystems. Thus, it makes approximately two trades per day. Not too much.
Summarizing your participation in ATC'2006, could you tell us what it has taught you? What conclusions have you made and what exactly has influenced them?
First of all, it taught me that the results of scalping EAs may be as different as day and night in Tester, on a demo account or in real trading, as well as they are different for different brokers. So such strategies are unfit for a long-term and stable trading forex.
You wrote on your Participant's page that you were using neural networks in your EA. How complicated is such an EA? What is more difficult to create - an optimal neural network or the Expert Advisor's algorithm?
A neural network that forecasts the changes in exchange rates and a trading algorithm are inseparable, they belong each other. Indeed, the Expert Advisor is very complicated. This trading system was first developed in С++, tested and optimized. Only after that, it was re-written in MQL4 and debugged.
Olexandr, why did you write the program in С++ and then re-write in MQL4?
MQL4 will, for objective reasons, will never be able to compete with C++ in performance, whereas the program operating speed is a very important factor for neural networks. However, there is a more important thing - debugging means available in С++. This accelerates coding of complicated programs.
What do you input in a neural network: indicator readings or a certain set of prices on a certain interval/timeframe?
Readings of indicators developed especially for this trading system. I won't give more details now. The only thing I can say is that they combine some moving averages.
You informed above that your EA consisted of three subsystems. Is it an implementation of the so-called "committee of neural networks"?
No, it is not a "committee". These are three independent subsystems. No one of them "sees" what other subsystems are doing. Committee of neural networks can be a possible development of my EA in future.
After having optimized my trading system's Strategy Tester, I obtained a parameter space where the system produced good results. And, in order not to put all my eggs in one basket, I took from this space three sets of parameters to be optimized. I allocated 1/3 of the deposit for each subsystem at the very beginning. So each subsystem defines the volume of trades according to "its" balance.
Although the subsystems correlate strongly, I managed to achieve some diversification. Well, in a case one of the subsystems starts to lose its deposit for some reasons, two others can get the account out of losses.
Your EA opens positions with preset levels of Stop Loss and Take Profit, but the most of them are closed "by market". What is the reason for this: Does the position holding time run out or do the conditions of position opening "spoil"?
No, it has no relation to the time at all. Positions are closed when the probability of opposite trend increases.
Do you find this probability using moving averages?
Yes, I do. A certain set of moving averages is processed by a neural network. Then the neural network gives a forecast.
The position holding time average of your EA made a little more than 8 hours in October. Multiplying 144 orders by 8 hours and dividing the result by 24 hours (the duration of a day), we can see that your Expert Advisor had been "in the market" for 48 days in October. However, there were only 23 trade days in October. So it is no wonder that your EA was "in the market" practically all the time. Was it your purpose or is it a random side effect of optimization?
Well, it would be just too boring for me to observe my EA that is out of the market most of the time. It's a joke, of course. However, it was not my purpose, it happed so.
Do you visit other Participants' reports? Do statistical data on Participants' pages help you in any way?
Of course, I visit them and look through with much interest. The reports are very informative. The first thing I look at is the balance curve. It can provide you with 80% of information you need. Then I read the data - maximal drawdown, Profit Factor, etc.
In the Participants table, I would add the total volume, direction and currency of the current trades for each Participant to make it more illustrative.
Olexandr, who of your competitors could pretend to take Top Three places, in your opinion?
Locations of the most Participants change so rapidly in the table that I find difficulty in naming real candidates.
Let's imagine that you have won. How would you dispose your prize money, if it is not a secret?
There is no secret at all: I never estimate expenditures before I gain income.
Thank you very much for your interview, Olexandr. We wish you much success in automated trading.
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