Williama's Trading System

[damonl]

Hi everyone,

Regarding account lot size:

Psipherious is correct about the micro accounts and you can scale down the parameters I used in the $100.000 account. As I said before, everyone have different accounts and different amounts to trade with. That is the reason why I do not present specific numbers and calculations. Besides I am not here to teach how to trade and how to calculate your own settings, this is up to you.

Dehumanizer is correct about demo accounts vs. live accounts. Brokers do not trade against you in their demo accounts as they do with the live accounts. In fact they do it on purpose so you get hooked up with them. By making it easier to trade in the demo accounts you get good results but when you go to trade the live account they apply all kind of strategies to milk you out as Dehumanizer says.

Naufrage: I thank you for your effort on making an EA to trade my system and I know once you understand completely my system you will be able to create the EA that does the work. I assume you are a MQ4 programmer. I back tested your EA, unfortunately it did not work, no trade was opened, all blank.

Just bear in mind this:
You need to set up the 3 buy stop orders and the 3 sell stop orders away in equal increments from a middle starting point. Then all you have to do is to have the EA triggering each level placing pending orders on the rest of the levels but the one is at. If it is at a buy level, the EA must place pending orders only above that buy level is at with the initial lot size and in the 3 sell levels with any lot size you choose (usually twice the initial lot size). If the price is at a sell level, the EA must place pending orders only below the sell level is at with the initial lot size and in the 3 buy levels with any lot size you choose (usually twice the initial lot size).

That is all. You see now how easy the system is.

Some people are contacting me directly to my e-mail asking me to calculate and other things. I do not want to be rude and I hope I do not sound like that. The thing is, I am not here to teach people how to trade or take decisions for them, how to calculate things or what risk to take. I am here only to show my system as I have already done free. It is up to you as a trader to understand the system and how to implement it according to your style.

Since I am a money manager, these requests fall into that category and therefore we would have to talk about business, about me teaching you how to trade, consulting or managing your account. Of course, I am opened to that and you can contact me directly to my e-mail and of course expect to share profits.

after reading this i am glad to say that it took me a while yesterday, but when finished i understood exactly what you wrote today. it took following along with your trades.

it seems that if you have a small amount of cash in your account, you could possibly trade eurusd at 1.00 lots (micro) if yoiu started trading at 0:00 gmt time. with a 15 pip increment you would on most nights only go back and forth a couple of times.

i am going to go into this tonight with .1 lots tonight on eurusd at 0:00 GMT. I have other successful ways to trade gbpjpy and gbpusd, but this looks as good as any for eurusd.

a couple of questions......

i have not calculated, but why if it hits two levels in either direction and comes back do you take a loss?

when you were trading with small account balance, what did you use for lot sizes and what pair did you trade?

thanks again :err:

 

[williama]

Naufrage:

If you want to really make the EA efficient, you must create a new level, I call it level 0 (the middle point) this increases profit and decreases equity loss and risk. You can also make it so you are allowed to allocate different lots in both sides (you know what I mean about doubling the opposite side) and be able to change spreads so you can place it on any currency or spread change among brokers. Good luck on your work creating the EA and looking forward to see it.

Damonl:

Ok, this is a trading question but I am going to answer it.

You take a loss when the broker or market triggers two levels on both sides or three levels on both sides for one simple reason; you are hedging the trades. That means you have to pay the spread of all opened orders plus the gap between the buy and sell orders. So, the more opened orders you have, the more spread (for each one) and the adding gaps of ALL of them together you have to pay.

Example:
Open a buy order then wait for the market to go down 70 pips and then open a sell order. Then if both orders are closed at the same time, what happens? How much do you pay for that?

 

[Kitty Eliffe]

Hi William,

I've been looking at the EUR/USD results on FxPro and I'd like you to explain something if you dont mind (I'm ignoring SELL orders as they are not relevant to the question).

The starting point for the grid was 1.5345 so pending orders were placed at:
1.5360
1.5375
1.5390

When the price hit 1.5365 (starting price +20) 3 more BUY orders were placed at:
1.5380
1.5395
1.5410

When the price hit 1.5385 (1.5365 +20) only 1 further price was placed at:
1.5400.

As this order hit TP at 1.5445 for 45 pips why weren't orders placed at:
1.5415
1.5430.

Is this just an arbritary decision or is it triggered by something I've missed?

 

[williama]

Hi everyone,

Kitty Eliffe,

At that time I was trying to illustrate something else. Some people asked me why couldn´t you just leave the set up and not place more orders. So, I left it like that.
Do not pay attention to the EURUSD set up since that was to show something else. Pay attention only to the trading on the GBPJPY pair set up and trades. Also disregard a couple of orders I placed at the very beginning of the trading to show that the account was active. Pay attention only to the trades that have the 6 repeating prices.

I outlined them in the pìp result message where I show how many pips where made. You just set 6 levels, 3 buy stops and 3 sell stops, once the market moves and triggers a level you place the pending orders on the other five levels. If you want to reduce risk and make more money then you create level 0 which is the one in the center.

Remember to place SL and TP in a way that all opened orders are closed at the same time. Also, to place double lot size in the opposite side from the level that is being triggered. And same lot size in the upper levels of the side a level is being triggered.

Let’s illustrate this:

SL SELL STOPS
TP BUY STOPS
BUY STOP LEVEL 3
BUY STOP LEVEL 2
BUY STOP LEVEL 1
BUY STOP OR SELL STOP LEVEL 0 (if you want to create)
SELL STOP LEVEL 1
SELL STOP LEVEL 2
SELL STOP LEVEL 3
TP SELL STOPS
SL BUY STOPS

This is the set up, I hope everyone can picture it better like this. You just keep placing the required pending orders every time a level is triggered.

 

[Aliassmith]

excell for manual

hello,

That is exactly how I pictured it. I created an excel spread sheet where I can enter the spread and the center price and it tells me all the data for the orders.

as for how the system works I thought the system added the 6 pending orders everytime the price moved and triggered an order. I have been working on the math and it appears to work.

If I could program I would make an EA that does what I explained above and closes all open orders and deletes all pending orders when a TAKE PROFIT level is hit, that way there is no worry about having all the orders "clear out" at the same time.

 

[Aliassmith]

2 issues

I guess the only problems I forsee is having enough funds to place all the orders needed and having to many pending orders for the broker.

I just calculated and example based on Williama's setup. The senerio was the price went down 2 levels and up to TP. At completion there are 43 pending orders and 34 orders were triggered. Of course this is an ideal senario and if the price bounces for awhile there or going to be more pending and orders.

Need to have enough margin or the broker wins!

I did the same calculation on the setup I explained and the orders and pending were half as much, but the profit was also half as much. My way might be easier to program all you need to do is move the TP in by 1 pip to be sure none of the extra orders are filled the same time the TP is hit.

 

[williama]

Hi everyone,

That is exactly what I have been telling you. In order to stay ahead of the broker you have to have enough free margin to be able to have your pending orders opened. Since you do not know how long is going to take to reach target you better have a lot of money so you do not risk anything with the broker. You know for sure that once it hits target you WILL make profit, so you do not have to worry about your money in the account.

Just think all the advantages that you gain with this system. You do not have to worry about volatility, economic news or events, political events, stress, market direction, etc. This is a sure shot, all you have to have is a big account.

You have not even seen me trade the way I do to make a lot of profit. The trading I did was just to show the system. I tell you, it is real about the 100%-500% profit a month I have mentioned before.

Remember, when I said that if you had a lot of money, you should trade the exchange? Well, that is if you are trading in a conventional way, but if you are going to trade with my system, trading with brokers with the highest leverage out there, you make a lot more money with less money. In other words, with an account of $100.000 trading with a broker and my system, you make the same amount of profit you would trading in the exchange with $50.000.000. Now you understand why I trade now with brokers?

 

[Aliassmith]

Hi everyone,

You have not even seen me trade the way I do to make a lot of profit. The trading I did was just to show the system. I tell you, it is real about the 100%-500% profit a month I have mentioned before.

Now that is the part I am not to sure of. If you have a $100,000 account and you make $1400 in 3 days and there are 20 trading days in a month. It seems you would make about $8,000 not $100,000 to $500,000 as you suggest.

 

[williama]

Hi everyone,

I traded just to show the system with 0.1 and 0.2 lots and just one set + the EURUSD but do you remember how many pips I made in the end during those 3 days?

Hi,

In case you have not yet calculated how many pips were made with the GBPJPY set up, here you have it:

Buy orders:
210.95 x 36 pips x 21 orders = 756 pips
210.60 x 71 pips x 71 orders = 1207 pips
210.25 x 106 pips x 10 orders = 1060 pips
209.90 x 141 pips x 2 orders = 282 pips
210.573 x 12.8 pips x 1 orders = 12.8 pips
TOTAL = 3317.8 pips

Sell orders:
209.55 x 83 pips x 9 orders = 747 pips
209.90 x 148 pips x 5 orders = 740 pips
210.464 x 47.2 pips x 1 orders = 47.2 pips
TOTAL = 1534.2

GRAND TOTAL = 1783.6 pips up!

Then think... how much money is made if instead of placing 0.1 and 0.2 lot pending orders, I had placed 1.0 and 2.0 lot size. You get 10 times as much, therefore instead of the aprox. $2.000 in profit that you see in the account now, you would see $20.000 in 3 days!

Not only that but I trade a lot more set ups. Also, this particular trade set took longer than usual. So, now you can guess how much can be made in the 20 days of trading.


That is how I usually trade for a $100.000 dollar account.

 

[Naufrage]

Hi Williama,

I need a confirmation: when you hit a level, you had always the same amounts of lots as pending orders (for example initial lot on the same side and double lots on the other), or you had an increasing amount of lot to always cover losses of already opened lots?

I ask you this because when making the EA, I ran into a problem:
-if I had always the same amount of lots as new pending orders, there will come a time, when the market go up and down without reaching an end, when new pending order won't cover losses of opened one. And after backetesting, this happened often, too often to be profitable
-if I increase the amount of the new pending orders added to always cover losses of opened one, the amount will grow exponentially, and eventually we run out of free margin. And, still after backtest, that happens sometimes, regardless of the size of your balance (I test with a 10 000 dollars and 0.01 lots, I still ran out of free margin and ended up with a big losses!).
And each case, this is very profitable... until the big losse occured.

As you said, no matter each end is reached, profit is made, IF and only IF we have enough margin to backup orders. Problem is, we don't know when the market will reach an end. It's like a martingale system (when you double your lot after each losing trade), in theory it always work, but in reality there will eventually be a bad day when you'll run out of money and lose everything, regardless of the size of your account.

But I'm still working on the EA as I think this strategy is good if we find a way to exit losing setup early. The "profit target" idea seems quite interesting in this regard. I'm thinking about a "dynamic" profit target, which would adapt to the market conditions to maximize profit and limit losses. If it interests someone, I'll keep you updated.

Good night everyone