Williama's Trading System

[Aliassmith]

Williama:

I think I understand. Could you please look at this and tell me if it is correct.

Let's say our "median price" is 202.50 and for the sake of easy calculations, our grid spacing is .50.




Buy#3 = 204.00
Buy# 2 = 203.50
Buy # 1 = 203.00

---->> 202.50 <<-----

Sell #1 = 202.00
Sell# 2 = 201.50
Sell # 3 = 201.00


If for example, initially our first BUY level is hit, we place 2 buy stop (pending) orders ABOVE our first buy level, and 3 sell stop (pending) orders below at their respective levels. If we are trading 0.1 lots and a buy stop order is triggered first (as in the example above), then all of our pending buy stop orders would automatically be set at 0.1 lots, while we would "double up" on all of our initial sell stop orders at 0.2 lots.


Buy#3 = 204.00 (pending = 0.1) /actual lots executed = 0
Buy# 2 = 203.50 (pending = 0.1)/actual lots executed = 0
Buy # 1 = 203.00 (pending = 0) / Actual lots executed = 0.1

Our Sell stop level orders look like this...

Sell #1 = 202.00 (pending = 0.2)
Sell# 2 = 201.50 (pending = 0.2)
Sell # 3 = 201.00(pending = 0.2)


Now, let's assume that we have our first buy stop level triggered but then the price turns around and triggers our first pending sell stop at 202.00. We then place more pending orders (which are added to the existing pending orders)... We would ADD a pending order to each of our 3 buy stop levels AND to our 2 lower sell stop levels (pending orders are not added to the level that is triggered). Our buy stop level orders now look like this:


Buy#3 = 204.00 (pending = 0.1+0.1) /actual lots executed = 0
Buy# 2 = 203.50 (pending = 0.1+0.1)/actual lots executed = 0
Buy # 1 = 203.00 (pending = 0.1) / Actual lots executed = 0.1

Our Sell stop level orders look like this...

Sell #1 = 202.00 (pending = 0) /actual lots executed = 0.2
Sell# 2 = 201.50 (pending = 0.2+0.2) /actual lots executed = 0
Sell # 3 = 201.00 (pending = 0.2+0.2) /actual lots executed = 0


Now, if price moves back up to 203.00, our pending buy stop at 203.00 would be triggered (Buy#1), and another pending order would be added to each of the two upper Buy stop levels and to each of our 3 pending sell stop levels...


Buy#3 = 204.00 (pending = 0.1+0.1+0.1) /actual lots executed = 0
Buy# 2 = 203.50 (pending = 0.1+0.1+0.1)/actual lots executed = 0
Buy # 1 = 203.00 (pending = 0) / Actual lots executed = 0.2

Our Sell stop level orders look like this...

Sell #1 = 202.00 (pending = 0.2) /actual lots executed = 0.2
Sell# 2 = 201.50 (pending = 0.2+0.2+0.2) /actual lots executed = 0
Sell # 3 = 201.00 (pending = 0.2+0.2+0.2) /actual lots executed = 0

If price continued to move up to our 2nd buy stop level and 203.50 was hit, then on the buy side, a pending order would ONLY be added to our upper most buy stop level (Buy#3) and not to the lower buy stop (Buy#1), and pending orders would also be added to all of our sell stop levels. Our trades would now look like this...

Buy#3 = 204.00 (pending = 0.1+0.1+0.1+0.1) /actual lots executed = 0
Buy# 2 = 203.50 (pending = 0)/actual lots executed = 0.3
Buy # 1 = 203.00 (pending = 0) / Actual lots executed = 0.2

Our Sell stop level orders look like this...

Sell #1 = 202.00 (pending = 0.2+0.2) /actual lots executed = 0.2
Sell# 2 = 201.50 (pending = 0.2+0.2+0.2+0.2) /actual lots executed = 0
Sell # 3 = 201.00 (pending = 0.2+0.2+0.2+0.2) /actual lots executed = 0


*Basically, the pending orders are accumulating (stacking up) if the price continues to whipsaw back and forth through the pending stop levels. Is this correct?

------------------------------------------------------
**When sell stop orders are hit, then pending orders are only placed at sell stop levels BELOW the level that was actually hit, plus at all of the buy stop levels.

***When buy stop orders are hit, then pending orders are only placed at buy stop levels ABOVE the level that was actually hit, plus at all of the sell stop levels.
-----------------------------------------------------

Again, I may be completely wrong, but this is how I understand it. Please let me know if this is correct.

Regards,

CA26

This post has enabled me to see my error. I will continue to test this out.

 

[DMFXTrader]

This is a great idea Williama - thanks for sharing. I think I understand everything but would like to see the live trades just to make sure.

Are you still planning on another example on your demo platform today?

 

[bill77]

I didn't open an account. Won't login if I don't open an account.

Can't get into EuroOrient-Demo server.

forexjack and all those that can't log in williama demo. please make sure you enter the password corectly. Notice that the password "Trapped1" starts with a capital letter and the rest are lower case letters. you will not log in unless you type in exactly the way williama printed it.

 

[A Reagan American]

Hi CA26:

That was a good explanation of the system but you forgot to count the original orders. Therefore when the "First Buy" order is triggered, the "Second Buy", "Third Buy" and all 3 "Sell" orders are still pending for .1 lot each.
This .1 lot then needs to be carried forward, such that at the next step when the price triggers the "First Sell" oders a total of .3 lots are sold (the original order for .1 lot and the newly added order for .2 lots).

Also, if I understand correctly, when the "First Buy" order is originally triggered and the new pending orders are placed, Williama also recommends placing a pending Sell order (opposite of the order just filled) at "Level 0" for 0.2 lots. (It appears that this is not part of the basic system but a later addition.) The same thing would then be repeated a each subsequent step of the example, if I understood Williama correctly.


Hi Williama:

Thanks for this interesting system. I just came by this discussion today so I still have a lot of studying and analysing to do. I will try to attend your session later today.
Please comment on my preceding response to CA26 to either confirm or correct my understanding.

Also, you mentioned you had determined the best "gaps" for each curreny pairs. Could you tell us, at least for the major pairs, what those figures are? We know already the for the GBPJPY the gap is 35 Pips (i.e. half range = 140) and for the EURUSD, it is 15 Pips (Half range = 60) but I have not seen any mention of the gaps for the other pairs.
Blessings,

 

[williama]

Hi everyone,

A Reagan American:

Is correct. Also, the 0 level is part of the original system and you can see the trades for it in the first trading trades I made. I did not mention it at the beginning to not complicate things.

I am going to be trading in half an hour or so, maybe an hour. Regarding the request about gaps, I am keeping some of my work for myself and let you some work for yourselves. I think I have given enough of my knowledge here. You guys have to get some experience for yourselves.

 

[markpips]

Someone please help

In my account I use a leverage of 1:100.

Please could someone direct me on how to change the leverage to 1:500 to enable me use William's trading system more effectively.

Thanks

Markpips.

 

[williama]

Queststone, #111, please contact me directly about your inquiry.

Mantorp, #105, both ways, they close your s/l and leave the t/p to retrace. Also, they frezze your platform by giving your context trade is busy, or they disconnect server arguing they are flooded with requests.

Pyer2, #106 very important issue. This is the most important risk factor. I try to control it by having the s/l and t/p triggering at the same time so you could argue to them. Since, both are hit at the same time you should have them closed or left opened at the same time in case of slippage. If this happens nothing happens to you but brokers are thieves in the loose.

They are so shameless that they close your t/p and leave the s/l open if needed, if they have retracement they do the opposite. Also, they do spread widening to get you. They do this in some instances, especially when there is a big stake. As I said, the system works perfectly until the broker wants to cheat on you. So, fortunately this is a tactic they can come up with once but not to often and you can always prove you had the orders as to be closed or left open at the same time.

On the other hand, if they leave both opened going in that direction, it means you will make more money and since you are there when it happens, you deal with it in your favor. If they leave one opened (always the one against you of course) you are there and you deal with it.

raotnv, #110, time frame is irrelevant in my system.

Trading in half an hour or so.

 

[TrueBlue]

Confusion

Hi everyone,

Ok, what I can sense is that not everyone has read the thread from the very beginning or was not through the whole process........

William,
Having read the thread a few times, I am just as confused, there is too much going on in the thread which clutters trying to make sense of the strategy, etc.

May I respectfully request that you just do a summary of the system maybe in bullet points? For example:

• Do this
• Do this
• If this is > than this do this
• S/L =
• T/P =

Thanks for listening

 

[bill77]

Hi CA26:

That was a good explanation of the system but you forgot to count the original orders. Therefore when the "First Buy" order is triggered, the "Second Buy", "Third Buy" and all 3 "Sell" orders are still pending for .1 lot each.
This .1 lot then needs to be carried forward, such that at the next step when the price triggers the "First Sell" oders a total of .3 lots are sold (the original order for .1 lot and the newly added order for .2 lots).

Also, if I understand correctly, when the "First Buy" order is originally triggered and the new pending orders are placed, Williama also recommends placing a pending Sell order (opposite of the order just filled) at "Level 0" for 0.2 lots. (It appears that this is not part of the basic system but a later addition.) The same thing would then be repeated a each subsequent step of the example, if I understood Williama correctly.


Hi Williama:

Thanks for this interesting system. I just came by this discussion today so I still have a lot of studying and analysing to do. I will try to attend your session later today.
Please comment on my preceding response to CA26 to either confirm or correct my understanding.

Also, you mentioned you had determined the best "gaps" for each curreny pairs. Could you tell us, at least for the major pairs, what those figures are? We know already the for the GBPJPY the gap is 35 Pips (i.e. half range = 140) and for the EURUSD, it is 15 Pips (Half range = 60) but I have not seen any mention of the gaps for the other pairs.
Blessings,

ca26 has set up a great list (example) a few posts ago. eazy to follow. thanks ca26. but now reading the above by reagon american, (which has been aproved by williama) has confused me just a little. just wandering if ca26 alters his origianal great explanation with reagan american's corection. seeing something in writing in step by step form makes plenty of sence. hope its not to much trouble. cheers

 

[williama]

Hi everyone,

I have initiated trading in the account. The broker has completely shut me off the use of EA, therefore I have to do manual trading all the time. The opened sell trade is just a reference and to see that the account was active. Pay attention only to the pending orders. Good luck to everybody, I hope you get to learn a lot by watching me.