Trading Strategy Based on Bill Williams Alligator (Chaos) System

I am using the strategy generator included in Forex Strategy Builder to generate this ea and as you can see, the results are quite impressive.

The ;win/loss' ratio is 1.00, the Sharpe Ratio is 3.93, not bad for an automated strategy, especially considering that the out of sample is 30 per cent.


I will post the numbers below for you to have a look at.

It took only three hours for Forex Strategy Builder to generate this EA....., I just set up the indicators I want to use and let the generator seek the values it can use best.

Should you look at MyFxBook, you will see that few of the robots listed there have as good numbers as this one.

You can download this software, there is a free version on the site that will do exactly what I have done here and you can quickly develop several great trading strategies.

You will find this to be a most valuable tool to have available.

Download here   Forex Strategy Builder

Here is a description of the indicators used

Here is the download link  for this free software 

Forex Strategy Builder

I will be posting more results from different systems that I develop as days pass, stay tuned.!

Analyze Your Metatrader4 EA Completely

EA Analyzer

Strategy Quant has prepared what I believe to be an excellent program for dissecting every aspect of your EA to allow you to get better and better results.

Really simple to operate this software, you need only enter your backtest results or your trading records using copy and paste or the saved Mt4 report and then work with the various screens available.

Built in are a vast number of metrics that will give you a bird's eye view as to the effectiveness of your strategy.

You can even isolate the days and hours of the week in which the strategy performs best.

Monte Carlo simulation will show you a worst case scenario and it is developed in mere seconds.

'What If' screen will you give a multitude of choices for analysis.

There are so many great features to this program.

You can have a free trial, it is fully featured and will show you some amazing information about your EA.

Download the free trial at EA Analyzer

Bline System

The Bline System was created by Buffy a couple years ago and represents a very simple and yet effective method of catching price action and making profitable entries. As a trading strategy this is a visual approach and excellent.

The significant area of this approach is the use of stochastics to illustrate potential entries and exits.


The 'Bline' is the magenta line in the first lower chart and it gives a very good indication of trend. Both of the stochastics charts will indicate entries and divergences and will confirm what is showing in the Macd.

This system does not miss much in the way of trades and with the multiple time frame approach is well worth learning. As a trading strategy I would estimate that the 'Bline' system, with some screen time, will stack up well against many other manual systems.

I have used this system on many different currency pairs over the years and had good results. I was fortunate enough to be able to learn the entries while in the trading room that Buffy used.

Forex Trading Strategies

Forex Trading Strategies abound, there are manual strategies and automated strategies and there are many variations of each.

The purpose of this blog is to have a look at several strategies of different kinds, to present variations and hopefully the articles will be of some benefit to the reader.

One of my interests is the software Forex Strategy Builder, which have been using for a few years to generate strategies for autotrading. Automated trading suits my personal preferences, particularly because the European open comes at a time that is awkward for me.

I have prepared numerous trading robots for use on Forex charts and have had some relatively good success with them. As you will see on other pages in this blog I like to experiment with trading strategy development by using certain indicators and combinations.

In addition to developing my own strategies I am quite interested in seeing what other people value and use. I will be sharing on a regular basis any systems or literature that I come across.

Hopefully you will find items  of interest on the blog, be sure to have a look at the different pages.

Here are a couple more very popular videos about trading strategies

Morning 2 Trendlines Forex Strategy

This forex strategy is very simple but it proved give profitable trade. Only use 2 lines trendline tool during in the morning or starting of the day. We recommend you have to first understand how to use the trendline line tools in Metatrader 4. And try this forex strategy in virtual account first before applied for real trading

How to Make Morning 2 trendlines

1. Open MT4 Chart on 1H time frame, recommeded pair are EURUSD or EURJPY
2. Use the line separator period to see prices from day to day
3. Pull trendline from Highest yesterday to the Highest of the first candel on this day.

4. Pull trendline from Lowest yesterday to the lowest of the first candel on this day.

Open Position Rules

After you make 2 trendlines, now wait a second candel close on this day .

1. Open BUY if second candel close above the trendline.
2. Open SELL if second candel close below the trendline
3. If the second candel doesn't close above/below the trendline, then wait for the next candel.
4. Use your money management to take profit and stop loss. You can take profit near supply and demand or support resistance line

5 Minutes Momo Forex Strategy

The name of the system is 5 Minute Momo Forex Strategy. This forex system was introduced at "High Probability Trading Setups for the Currency Market" By Kathy Lien and Boris Schlossberg.  It is a simple Scalping Strategy using indicators of EMA and MACD.

Setup
EUR/USD 5 Minutes timeframe
EMA period 20
MACD  (12,26,9)


Open Buy Position When:

1. Look for currency pair to be trading below the 20-period EMA and MACD to be negative
2. Wait for price to cross above the 20-period EMA, make sure that MACD is either in the process of crossing from negative to positive or have crossed into positive territory no longer than 5 bars ago
3. Go long 10 pips above the 20-period EMA
4. For aggressive trade, place stop at swing low on 5 minute chart. For conservative trade, place stop 20 pips below 20-period EMA
5. Sell half of position at entry plus amount risked, move stop on second half to breakeven
6. Trail stop by higher of breakeven or 20-period EMA minus 15 pips

Open Sell Position When

1. Look for currency pair to be trading above the 20-period EMA and MACD to be positive
2. Wait for price to cross below the 20-period EMA, make sure that MACD is either in the process of crossing from positive to negative or have crossed into negative territory no longer than 5 bars ago
3. Go short 10 pips below the 20-period EMA
4. For aggressive trade, place stop at swing high on 5 minute chart. For conservative trade, place stop 20 pips above 20-period EMA
5. Buy back half of position at entry minus amount risked, move stop on second half to breakeven
6. Trail stop by lower of breakeven or 20-period EMA plus 15 pips

Tom's Simple 7 Strategy

Tom's Simple 7 forex strategy using EMA indicator setting 7 (close) as a determinant in taking open position. This scalping forex strategy work good on any time frame. It's a simple strategy but good enough to read the direction of price movement. Premises should be combined with higher timeframe. And you can add your indicators if you like.


How to setup the chart:

• Set a 7 close price EMA.
• Set a 50 close price EMA

How to Trade

If the 7 EMA is lower than the 50 EMA trade only the short opportunities for maximum risk/reward. So if the closed candles are below the 7 EMA trade short.

If the 7EMA is higher than the 50 EMA trade only the long opportunities for maximum risk/reward. So if the closed candles are above the 7 EMA trade long.

This is a trend-based strategy. The 50 EMA is there to indicate an increasing, decreasing or consolidation trend. I would not be interested in trading this strategy in a period of consolidation.

Warning:
These instructions expect that you have basic trading experience and is not meant to teach or train you in trading derivatives or forex. With that said, you can use this method on any timframe, but since we are differentiating the positions above and below the 7 EMA that means you will have to monitor your trade constantly after you enter it.

Note:
This method was left simple to allow people to use it as I basically set it forth, but also to allow you to adjust it to meet your needs and allow room for your new ideas based on it.