The system of Andrew Trading
After you’ve copied necessary files as well as run the MetaTrader 4, you will open a major currency pair like GBP/USD, EUR/USD for trading. The time frame will be 4 hours and after you set time, you will apply the needed template. Then, you will see a chart as this one:
The Strategy of Andrew Trading
To open Long Position:
- Nonlagdot color should change to blue from red
- Nonlagdot Bots must be above Supertrend line
- Color of Supertrend line should be green
Important: After all conditions have been met, you must wait for rebound. Be careful of the fact that we aren’t actually opening position instantly after all conditions have been met.
A position must be opened upon execution of pending order. And that order will be placed on upper part of market extremum that’s formed after first rebound.To open Short position:
1. Nonlagdot color should change to red from blue
2. Nonlagdot Bots must be below Supertrend line
3. Color of Supertrend line should be red
I believe this example here would enable you to comprehend what I wish to say:
Buy: a dot of Nonlagdot changes from red to blue. At the same time dots of nonlagdot should be above the Supertrend line. The Supertrend line should be green. A position should be opened by execution of a pending order. The order is placed on the upper point of the market extremum, which is formed after the first rebounce of the market downward (when closing price is lower than previous one). That is one should wait untill the price has exceeded the point of extremum, and only then buy. However, if the price fails to exceed the level of the point of extremum, one should wait. After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to red, the order shoud be canceled.
Sell: a dot of Nonlagdot changes from blue to red. The same time dots of nonlagdot should be under the Supertrend line. Also the Supertrend line must be red. A position should be opened by execution of a pending order. The order is placed on the lower point of the market extremum, which is formed after the first rebounce of the market upward. That is one should wait untill the price has exceeded the point of extremum, and only then sell. But if the price fails to exceed the level of the point of extremum, one should wait. After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to blue, the order shoud be canceled.
Market entries without placing pending orders are not recommended.
Pending orders for market entries are placed with the regard of the amount of the spread and additional 3 pips.Exit rules
- The price touches the Supertrend line.
- The Supertrend line changes its color.
The price touches the first line of the Fibonacci fan. The Fibonacci fan is constructed from the point of the market extremum at the beginning of its movement and up (or down) to the opposite extreme point of the current market, that is, from the bottom to the top of the movement (when buying) and from the top of the movement to the bottom (when selling). It is important not to confuse: the Fibonacci fan is constructed not from the market entry point, but from the point of the beginning of directional movement or trend (up or down). Fibonacci fan line, which is closest to the price, serves as the exit level.
Stop-loss is set:
1. On Supertrend line, or
2. Below near price swing, or
3. Under (over) the closest extremum of the market, which exceeds the Supertrend line in the opposite direction.
Stop-loss order is placed with the regard of the amount of the spread and additional 3 pips.
The money management is recommended: either not more than 10% of the capital per trade, or a progressive system (e.g. Fibonacci or semi-martingale). Martingale is not recommended because it is far too risky in case of the lack of capital after several consecutive losing trades.
Adding is recommended solely to profitable positions after the regular change of Nonlagdot color in the direction of the current trend.
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