OzFx System :) 100-800 Pips Per Trade

[OzFx 10]

Hello Friends,

 

I would like to share with you a system that has consistently been successful for me, that I would like to call OzFx System.

 

What can You expect?

This system has a potential of banking 100-800+ pips per trade trading with Daily Chart.

 

Why Daily Chart?

As you could guess by now that this is not a 5 min scalping system. I believe in trading longer time frame simply because first of all rules of

technical analysis hold true more often and second I don’t want to sit in front of pc all day long.

 

Think like this, most of us one day would like to be full time traders; however it doesn’t mean that we spend all that time in front of PC.

I would rather go flying and playing golf. So I developed this system thinking of long term and hence it is based on Daily Chart.

 

See It For Yourself:

Let’s see if you can spot the correlation between the indicator and the price action.

 

 

I bet you were able to spot that short entry (300+ pips). Tell me that you noticed that every time AC changes color and crosses the 0 line

it gives us an entry signal. Am I right or right??

 

Did you see another short trade towards the left side of the chart?? That trade was worth 835 pips in 5 days.

 

No Clue So far:

I believe 90% of the people will be able to spot the correlation mentioned above. If you are one of the unlucky 10%, then I would recommend

to try some other system and not to waste your time on this post.

 

The reason I say above is that we should trade using strategy that is intuitive and easy to follow. Technical analysis is not perfect science;

I believe it is an ART, an ART to pick signals as they happen. I am terrible at spotting Flags, Triangles and Head & Shoulders. Hence I keep away

from them and don’t want to spend years to master them.

 

A Bit Of History:

I started with Forex few years ago simply because I like the volatility and leverage. I’ve never traded stocks in my life and no plans to do so ever.

The only stock I ever held was given to me by the IT company I worked for.

 

As most of us I tried systems provided on Forums and also commercial system. I tried News Trading, 5 min scalping and astrology (just kidding),

but had no luck. I wasted a fair bit of money and precious time on several systems that were not worth their while.

 

However the learning that took from that was these systems were complex, had too many indicators (or none) and required a great deal of discretion.

So I went and did my own research to see what indicators make sense, what setting works best and what time frame they should be used on.

 

So What Is The System?

 

Setup:

 

* Open up a daily chart on EUR/JPY.

* Apply Bill Willam’s Accelerator Oscillator (AC).

* Apply Stochastic with setting 5,3,3 on top of AC. Use the template if don’t know how to.

* Try and use demo MT4 from ODL securities. Every broker has different time when they start a new daily candle.

* ODL seems to have the time that works best. I only use their demo account for charts and place my trades on totally different broker.

 

Short Entry: RED AC below 0 and Stot below 0

Long Entry: Green AC above 0 and Stot above 0

Exit: OppsiteBuy/Sell signal or as per Money Management.

Filter: Apply 200SMA. If price is below 200SMA then only take short trades. If Price is above 200SMA then only take long trades.

 

Money Management:

 

* Trade with 5 Lots with Stop Loss 100 pips away

* Take Profit on 1st Lot at 50 pips. Move Stop Loss to Break Even (BE).

* Take Profit on 2nd Lot at 100 pips.

* Take Profit on 3rd Lot at 150 pips.

* Take Profit on 4th Lot at 200 pips.

* Let the 5th Lot run until you see an opposite entry signal.

 

The Risk/Reward ratio turns out to be 1:1 or better depending on your 5th Lot. Since we trade on daily and would only take

trades with high probability of success, 1:1 would work just fine.

 

If you choose to do back-testing then take special care for signals from late November to end of Dec. Low volume during this time

of the year creates wild swings.

 

My Challenge To You:

Spend 2 mins every day to analyze 8-10 of your favorite pairs. Demo it for 2-3 weeks and post the screen shots of your trades for everyone

to see and learn.

 

What’s In For Me?

It is time for me to Give Back. I learned a great deal from forums and thought there can’t be another way to share something that can make

us all a lot of money. Plus I hope to learn from others on how to improve this system.

 

Up Next:

 

* Advance Entry Signals

* Advance Stop Loss(SL) and Profit Taking(PT)

* What pairs to trade and what corresponding Stop Loss to use?

* What are other tradable Time Frames?

* Squeeze-More – An Intraday Strategy

* FAQ

* EA

 

I’ll reveal more info about the system once I start to see more interest in this post from Forum members.

 

Cheers,

OzFx

[OzFx 10]

Few files for everyone

Sample Trades.pdf

OzFx Forex System.pdf

OzFx-template.zip

[brownsfan019 17]

Interesting stuff Oz. Have you tried this on stocks and futures?

[OzFx 10]

Interesting stuff Oz. Have you tried this on stocks and futures?

 

Nope. Share market is not that volatile in my opinion. Perhaps commodities will be better suited.

 

Feel free to try and post your results.

 

Cheers,

OzFx

[OzFx 10]

OzFx Daily Method PIP Update

-----------------------------

 

USD/CAD moved in our last night making us +50 pips. Later on it hit our SL

for the rest of the lots.

 

I also closed out our EUR/CHF at +20 since I didn't see much movement. I am

still holding USD/CHF which is close to BE.

 

Month Total: +270 Pips.

Previous Month: +1720 Pips

[HAL9000 10]

Hello Friends,

 

I would like to share with you a system ...

 

 

Hello Oz,

 

my wonderful wizard of Oz.

 

I come from a very depressed (and depressing) stock board, so excuse my way of writing.

 

Your initial post seems to be very detailed, and I have a very simple question to you ...

 

Especially to your statement quoted!

 

So here is my simple question:

 

Why?

 

 

Regards,

 

Hal

[HAL9000 10]

Hello Friends,

 

I started with Forex few years ago ...

 

 

 

Well, I will never start to trade Forex, its an unregulated market.

Or should I say, an uncontrolled market, or ...

 

Anyway, people are different,

 

but don't forget:

 

Why?

[HAL9000 10]

 

* Try and use demo MT4 from ODL securities. Every broker has different time when they start a new daily candle.

* ODL seems to have the time that works best. I only use their demo account for charts and place my trades on totally different broker.

 

 

And for now my final question; does your system only work with the MT4 demo account from ...?

 

Regards,

 

HAL9000

 

P.S: Maybe really my final question: If you are the Wizard of Oz, well what do you know about HAL 9000?

Edited February 11, 2008 by HAL9000
Minor modifications.

[OzFx 10]

Hello Oz,

 

my wonderful wizard of Oz.

 

I come from a very depressed (and depressing) stock board, so excuse my way of writing.

 

Your initial post seems to be very detailed, and I have a very simple question to you ...

 

Especially to your statement quoted!

 

So here is my simple question:

 

Why?

 

 

Regards,

 

Hal

 

 

I think you missed this part :

 

What’s In For Me?

It is time for me to Give Back. I learned a great deal from forums and thought there can’t be another way to share something that can make

us all a lot of money. Plus I hope to learn from others on how to improve this system.

[OzFx 10]

Well, I will never start to trade Forex, its an unregulated market.

Or should I say, an uncontrolled market, or ...

 

Anyway, people are different,

 

but don't forget:

 

Why?

 

Only if you had read it little bit further

A Bit Of History:

I started with Forex few years ago simply because I like the volatility and leverage.

[OzFx 10]

And for now my final question; does your system only work with the MT4 demo account from ...?

 

Regards,

 

HAL9000

 

P.S: Maybe really my final question: If you are the Wizard of Oz, well what do you know about HAL 9000?

 

My testing shows that it works best with ODL. Since every broker has different time for daily candle results differ from broker to broker in Forex.

 

But don't let me stop you from trying different brokers.

 

Cheers,

OzFx

 

P.S Google gives 700k results for "HAL9000". Not sure which one is you. Try "OzFx"

[HAL9000 10]

 

What’s In For Me?

It is time for me to Give Back. I learned a great deal from forums and thought there can’t be another way to share something that can make

us all a lot of money. Plus I hope to learn from others on how to improve this system.

 

Up Next:

 

...

 

 

 

Hello Wizard,

 

I havn't missed it.

 

OK, maybe I'm totally wrong.

 

But what about the start of candles,

 

what about chart providers and about their candle creation,

 

what about ODT, (again: Why? Works best! Why?)

 

what about Hal 9000?

 

 

Please show me that I'm wrong, and people will believe in your system.

 

 

Regards,

 

Hal

[HAL9000 10]

 

Google gives 700k results for "HAL9000".

 

 

Wizard,

 

you should not google,

this would be really too easy.

 

HAL 9000

 

Just THINK.

 

 

Regards,

 

Hal

[OzFx 10]

Hello Wizard,

 

I havn't missed it.

 

OK, maybe I'm totally wrong.

 

But what about the start of candles,

 

what about chart providers and about their candle creation,

 

what about ODT, (again: Why? Works best! Why?)

 

what about Hal 9000?

 

 

Please show me that I'm wrong, and people will believe in your system.

 

 

Regards,

 

Hal

 

Not sure where we are going with this conversation. Hence this will be my last post regarding this

 

In Forex every broker creates a daily candle at different time. It is a fact and you are welcome to test yourself.

 

The indicators I've recommended acts differently with different broker and by doing the research I found the ideal broker.

 

I don't use ODL for live trading...in fact I recommend different brokers on my blog.

 

Cheers,

OzFx

[OzFx 10]

OzFx Daily Method PIP Update

-----------------------------

 

AUD/USD First lot closed for +50 and then rest hit our SL at BE.

 

I am still holding EUR/AUD, USD/CHF and AUD/CAD.

 

Month Total: +320

[gooni 10]

Looks very interesting. I'll have a play around this weekend and see if I can get everything setup as needed in NeoTicker. Thanks for taking the time to share. Traders Laboratory is a little different to other sites..

[email 10]

Just let this fellow explain his system and treat him with respect. If you do not like the way he trades then show him what you see is wrong with his approach. Otherwise leave him be.

[tradeit007 10]

Hi,

Did anyone figure out the parameters for AC?

Thanks,

Rene

[HAL9000 10]

Did anyone figure out the parameters for AC?

 

Hi Rene,

 

I think that you will find the answer to your question here:

 

http://www.metaquotes.net/techanalysis/indicators/accelerator_decelerator

 

 

Hal

[OzFx 10]

Hello Friends,

 

Friday turned out to be a killer day . When I was just about to close off EUR/CAD it started moving in our favor. It went and made us +150 pips. We still have 2 more lots open on this pair.

 

EUR/USD also moved significantly and 3rd lot closed for +150 pips. We still have 2 more lots open on this pair as well. USD/CHF is currently around +100 and we hope to make more out of this trade.

 

Overall we made +300 pips in just one day and so far we are sitting at 26/31 successful trades.

 

Month Total: +520 Pips

Cheers

Oz

[HAL9000 10]

Just let this fellow explain his system ...

 

Hi email,

 

I agree so far.

 

Hal

 

P.S.: I also try to be polite. (Just in case that your post should be related to me.)

[thrunner 10]

Welcome to the forum, O Z,

Thanks for the thread and posts. It is always nice to see a successful trader posting with bravado on some tips of the trade to a room full of skeptics . The skeptics would say this is simply another moving average following system, pretty much like 90% of the systems out there. It is not bad, but the devil is always in the details, which I hope to provide with some analysis below.

The only objection one may bring up is that there is some discretion in this system, for example:

If you choose to do back-testing then take special care for signals from late November to end of Dec. Low volume during this time of the year creates wild swings.

Well, you can't really pick and choose time periods in a system without being more specific in the details. For example, is the system going to skip the holidays or the month of December? or how do you quantify volume in Forex? which doesn't report volumes.

 

There were also times when trades were exited without being stopped or reached target by trader's discretion.

 

Attached please find data on a strategy analysis of one interpretation of the OzFx System using Tradestation. The strategy employs a Lebeau trailing stop instead of the money management as presented above. The attached IE mht file (compressed as rar) showed that overall, trading 1 lot, the strategy is good with most long trades for the EURJPY, but it is not profitable for short trades. The SMA 200 filter was not shown, but if included, would not have improved the short trades significantly.

 

Thanks again for posting the OzFx system. It shows that even a fairly simple moving average following system can be profitable if taken with the proper discipline of money management.

 

A copy of the TS EL Acceleration Oscillator is also attached.

_OzFX20.rar

BW_ACELOSCILLATOR.ELD

[OzFx 10]

Welcome to the forum, O Z,

Thanks for the thread and posts. It is always nice to see a successful trader posting with bravado on some tips of the trade to a room full of skeptics . The skeptics would say this is simply another moving average following system, pretty much like 90% of the systems out there. It is not bad, but the devil is always in the details, which I hope to provide with some analysis below.

The only objection one may bring up is that there is some discretion in this system, for example:

Well, you can't really pick and choose time periods in a system without being more specific in the details. For example, is the system going to skip the holidays or the month of December? or how do you quantify volume in Forex? which doesn't report volumes.

 

There were also times when trades were exited without being stopped or reached target by trader's discretion.

 

Attached please find data on a strategy analysis of one interpretation of the OzFx System using Tradestation. The strategy employs a Lebeau trailing stop instead of the money management as presented above. The attached IE mht file (compressed as rar) showed that overall, trading 1 lot, the strategy is good with most long trades for the EURJPY, but it is not profitable for short trades. The SMA 200 filter was not shown, but if included, would not have improved the short trades significantly.

 

Thanks again for posting the OzFx system. It shows that even a fairly simple moving average following system can be profitable if taken with the proper discipline of money management.

 

A copy of the TS EL Acceleration Oscillator is also attached.

 

Hi Thrunner,

It is nice to hear from you and I appreciate your comments. During Christmas time I would say to trade with less lots and only on strong signals. This applies to any other holiday period.

 

Cheers,

OzFx

[OzFx 10]

Hello Friends,

 

What a great week we had. We banked a total of +550 pips. Two of our previous trades from week before reached +300 each and two from this week reached +100 and few +50. Here is the summary of the trades:

 

1. EUR/CAD---Closed ( from week before) --- +300

2. EUR/USD---Open ( from week before) -----Locked +200 Currently at +270

3. CAD/JPY--- Open --------------------- ----Locked +100 Currently at +42

4. GBP/USD---Closed ------------------------ +100

5. USD/JPY---Open --------------------------Locked +50 Currently at +23

6. EUR/GBP--- Open-------------------------Locked +50 Currently at +44

7. EUR/AUD---Closed ----------------------- +50

8. CHF/JPY--- Open------------------------- Currently at -38

 

Total for the month: +1070. So far we have 32/37 successful trades

 

Please note that we are trading on daily charts and there are times when we see pullbacks in prices before it goes in our favor. Most of the time 100 pip Stop Loss works fine but in some cases it won't work and thats why we came up with ASL. Read ASL to learn how to put smarter SL.

 

I also want to let you know that I'll away for next three days on business/holiday trip and won't be able to send email alerts. I would still manage my open positions and would report profit/loss when I come back. Perhaps it is good time for everyone to practice on their own

 

Have a great weekend

Oz

[js1257 10]

OzFx thanks for coming back and posting your results. It is good to see and an inspiration to see that money can be made. Don't worry about what other people say in their postings. They are probably not making money.