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Forex SuperSonic System

Discussion in 'General Forex Talk' started by fmgarner, Aug 13, 2010.

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  1. fmgarner

    fmgarner Recruit

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    I got the PDF of the system and I have watch it on a demo account and it does look like it works but I have not bought the EA and I am trying to learn how to write a EA to use the information he put in it.
    I was trying to find a way to add the file to this so I could share with others.
    If anybody has use the systems with the PDF or his EA please share what you know. Oh yeah I think I did add the file to this post
    Thanks
     
  2. fmgarner

    fmgarner Recruit

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    re

    here is the text of the system

    About the Strategy
    Forex Supersonic is based on a breakout strategy. It works on the theory that if price
    action breaks out of a set range, then this breakout will continue with great strength.
    The theory makes money by setting pending orders on the edge of a defined range,
    and waiting to capture these breakouts. Statistically proven, this strategy is known
    and documented to make money.
    How To Trade The Forex Supersonic Strategy Manually
    Step 1: Find your Broker’s GMT Offset.
    It is vital that we know the correct time in GMT for this strategy to work properly.
    Individual Metatrader 4 brokers use different server times and these often are NOT
    the same as GMT.
    We need to know the difference between the time display on your Market Watch
    within MT4 and the actual GMT time.
    To do this; open MT4. Look at the Market Watch time

    Then visit Google My broker’s time = 05:39 and search for “gmt time"

    GMT time = 02:39
    So the difference between GMT time and my broker’s time is +3 hours. That means
    that my broker’s time is 3 hours ahead of GMT time.
    Step 2: Find our range.
    To get set up for the trade you need to do this at about 4 GMT – 5:30 GMT. The trade
    will be placed at 6 GMT on-the-dot so give yourself some time to be prepared!
    In MT4 select File > New Chart > GBPUSD
    Then select the 15m timeframe.
    Then select the Line Tool:
    Click ANYWHERE on the GBPUSD 15m CHART and you should see that a red line
    appears on the chart.
    REPEAT this step so that you have 2 vertical red lines on the chart.

    Now we need to adjust the lines so that one is at 04:00GMT and the other at 06:00
    GMT.
    RIGHT click on the chart. From the menu that pops up select Objects List.

    From the box that pops up select the first vertical line and click Edit.

    Then select the Parameters tab.
    Now you need to remember your broker’s GMT offset. In this example our broker’s
    GMT offset was +3 hours.
    We need to know what time 04:00 and 06:00 GMT are in “Broker time”.
    04:00 GMT = +3 GMT Offset = 07:00 Broker Time
    06:00 GMT = +3 GMT Offset = 09:00 Broker Time
    Now, we need to set those lines to those times, so that we can see 4 and 6 GMT on
    the chart. To do this just click to edit and type the time:

    Once done, click OK, and adjust the second line. Then click Close.
    You will see the lines move on the chart to the correct times.
    Ensure that you set the correct date: We are setting up for a trade, we do this
    BEFORE the time has happened, so you should see the lines ahead of the current bar
    on the chart, like this:

    The next stage it to add a Moving Average. By adding this we can filter out false
    breakouts and dramatically improve out profit levels.
    Using the image below as a guide, select the Indicators toolbar icon > Trend >
    Moving Average

    Once the settings box pops up adjust the settings to:
    Period = 100
    MA Method = Exponential
    Apply to = Close
    It can also be helpful to change the line’s colour.

    The next step occurs just a few minutes before 6 GMT.
    First we switch to a 5m chart so that we can see more detail.

    Then select the Horizontal line from the toolbar.

    Then look carefully at the chart. Click the horizontal line on highest point that the
    candles reach, between our 4 and 6 GMT lines.

    Put 1st Horizontal Line at High Point
    Then repeat the Horizontal line for the lowest point that the candles reach,
    between our 4 and 6 GMT lines.

    Now switch back to the 15m chart.
    Now that we have switched back to a 15m chart we can see a box is drawn between
    the High/Low and 4/6 GMT. This is our range box.
    The next step is to decide if a trade is possible. We do this by looking at the moving
    average in comparison to the location of the range box.

    Examples of other setups:
    If the Moving Average moves below the box then this = a BUY TRADE
    If the Moving Average moves above the box then this = a SELL TRADE
    If the Moving Average crosses through the box then this = NO TRADES
    To help illustrate this, see the images below:

    Moving back to our example setup we are now ready to place the trade. It should be
    as close to just after 6 GMT as possible that you do this step.
    Using the range box as a guide we will now set a Pending Buy Stop order.
    On the chart Right Click on the High Horizontal Line.
    Select Trading > Buy Stop.
    N.B. Check that the Buy Stop at is the same as the price of the High (upper)
    horizontal line.
    IF the Moving Average had moved above the range box, indicating a SELL trade, then
    we would place a SELL STOP on the LOW Horizontal line.

    Once you have clicked Buy Stop an options box will popup:

    Adjust the lot size as you require and then click Place.

    The Buy Stop order is now placed and ready. If the market moves up and triggers
    the trade then the pending order will become a trade.
    Before this happens you need to edit the Pending Order to add a Take Profit and
    Stop Loss. To do this Right Click on the order in the Trade tab of the Terminal (see
    image above).
    Edit the Stop Loss price so that it is 15 pips away. This is a Buy order, so the Stop
    Loss will be 15 pips below the entry price:
    BUY PENDING ORDER = 1.5286
    Set Stop Loss 15 pips away = 1.5271
    Set Take Profit 22 pips away = 1.5308
    Click Modify

    At this point you can also set an Expiry Date/Time.
    IMPORTANT. If a trade has not been triggered by 8:30GMT then we cancel ANY
    pending orders. You can do this manually by deleting the order at 8:30 GMT or by
    setting an expiry date in the modify order box. Be sure to adjust for broker/GMT
    time when doing so.
    Our Pending Order is now in place and we are ready to trade. In this example it only
    took a few moments for the price to surge up and trigger our Buy Stop:

    Trade is now triggered! We are in the market!
    Now the price surges and breaks the range, it quickly heads for our take profit.

    A few minutes later our take profit is triggered and we made money for the day!
    As an addition to this strategy we like to sent 2 x Pending Orders with every signal
    and set the first take profit at 20 pips and the second at 75 pips, both with 15 pip
    Stop Losses.
    Wrapping Up:
    Now that you’ve mastered the Forex Supersonic manual strategy, you can use it day
    after day anytime you want to take advantage of the massive “breakout” trends in
    the forex market.
    Remember to leave a comment on the blog to tell me about your success with this
    system, I know it works for a fact because I have been using it for long time as my
    main source of income from Forex and I am sure it will work magic for you too:
    Forex Supersonic |
    Talk soon,
    John Wilson
     
  3. Forexwatchman

    Forexwatchman Sergeant

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    After a quick read through I will give you my opinion. This is a basic breakout strategy being dumbed down enough to teach very new traders a semi-advanced trading method, so it does have an educational quality to it. I'm not sure what is so important about the 4 GMT – 5:30 GMT set up time. By definition, breakouts occur when price action breaks through and closes on the opposite side of what was once a support/resistance or trendline. This would be considered a leading indicator for a trade set up and they happen all the time, not just at 4 GMT – 5:30 GMT. The BIG problem you then face is the fact that most breakouts (I've heard as high as 80%) turn into false ones, meaning price action breaks through your line, then comes back to it and passes right on through it again a short time afterwords. A way to filter out such fakeouts is to wait for price action to retest that broken line and see if the line turns into the opposite of what it was (support turns into resistance and vice versa). Also use higher timeframes.

    I would advise you to work with this method on a demo, but leave out the 4 GMT – 5:30 GMT time requirement or whatever that's about, and just look for ranging price action, use horizontal line to reflect support/resistance, then wait for a break. You're going to need more indicators to filter out the fakeouts, and that's where the fun begins my friend. I think there's one moving average mentioned in there, and that's a great lagging indicator to use to confirm trend reversal or continuation. But you need more than one. Let us know how it goes! It should be a great learning experience either way though.
     
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