# Andrew Forex Trading System



## Andrew Forex (10 January 2010)

*My trading system ″Andrew Forex″*​
*Currency pair:* any, but better cross-pairs that give good trends
*Time frame:* any, but usually 4-hour
I*ndicators:* supertrend, nonlagdot (value: 20)

*Entry rules*​
*Buy:* a dot of Nonlagdot changes from red to blue. At the same time dots of nonlagdot should be above the Supertrend line. Also 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. At the same time dots of nonlagdot should be under the Supertrend line. Also the Supertrend line should 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 (when closing price is higher than previous one). That is one should wait untill the price has exceeded the point of extremum, and only then sell. 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 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​*
I exit when:
1. The price touches the Supertrend line, or
2. The Supertrend line changes its color, or
2. 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. And the exit order should be moved on this line.

*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 following *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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## Andrew Forex (10 January 2010)

*Indicators for my system*

You can find the indicators for my system in the attachment.


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## Andrew Forex (28 January 2010)

*Presentation of the aggressive version of my trading system "Andrew Forex"*

Dear friends! I am glad to represent you an aggressive version of my trading system Andrew Forex.

*My trading system ″Andrew Forex″ (an aggressive version)*​
*Aggressive trading can be much more risky as well as more profitable. It is strongly recommended to master in practice a classical version
of  my trading system ″Andrew Forex″ before
(For those who are spoiling for a fight!)*​
*Currency pair:* any, but better cross-pairs that give good trends
*Time frame:* any, but usually 4-hour
*Indicator:* Supertrend

*Entry rules*​
*Buy:*
*a) when a Supertrend line is green. *A position should be opened by the execution of a pending order. The order is placed on the upper point of the first candle (bar) which is closed above the Supertrend line.
*b) when a Supertrend line is red**. A position should be opened by the execution of a pending order. The closing price should be going above the Supertend line. The order is placed on the upper point of the market extremum, which is formed after the first rebounce of the market downward (when the closing price is lower than the previous one). That is one should wait untill the price exceeds the point of upper extremum, and only then buy. However, if the price fails to exceed the level of extremum, one should wait. After the formation of a new point of the market extremum, the order should be moved to that point.
*Annotation. If the color of the Supertrend line is changed from red to green until the actual entry into the market, the order should be placed on the upper point of the first candle (bar) which is closed after such a change of the Supertrend line color from red to green.

*Sell:*
*a) when a Supertrend line is red.* A position should be opened by the execution of a pending order. The order is placed under the lower point of the first candle (bar) which is closed under the Supertrend line.
*b) when a Supertrend line is green**. A position should be opened by the execution of a pending order. The closing price should be going under the Supertend line. The order is placed under the lower point of the market extremum, which is formed after the first rebounce of the market upward (when the closing price is higher than the previous one). That is one should wait until the price exceeds the point of the extremum, and only then sell. However, if the price fails to exceed the level of the extremum, one should wait. After the formation of a new point of the market extremum, the order should be moved to that point.
*Annotation. If the color of the Supertrend line is changed from green to red until the actual entry into the market, the order should be placed on the lower point of the first candle (bar) which is closed after such a change of the Supertrend line color to red.

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 3-5 pips.
Pending orders can be cancelled after the change of the color of the Supertrend line or after placing the pending order in the opposite direction.

*Exit rules*​
I exit when:
1. The price touches the Supertrend line, or
2. The Supertrend line changes its color, or
2. 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. And the exit order should be moved on this line.

*Stop-loss* is set:
1. Under (above) the extreme point of the signal candle (bar), or
2. Under (above) the nearest extremum of the market, which exceeds the Supertrend line in the opposite direction, or
3. On a Supertrend line, or
4. Below the nearest price swing. 

A stop-loss order is placed with the regard of the amount of the spread and additional 3 pips.

The following *money management* is recommended: either not more than 10% of the capital per trade with the regard of the assets diversification (not more than 1% for one currency pair per one 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 possible solely to profitable positions after the each rebounce in the direction of the current trend.


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## danno75 (31 January 2010)

Hi Andrew,

The system you have shown here is very interesting with good explanations. I am only at the stage of trying to understand properly how forex trading is done. What program are you running for your charts and system that gives the colour change to the lines and dots on the graph? Is it manually done by you or is it part of a program like Amibroker or some other charting software?

Cheers
Danno


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## Wysiwyg (31 January 2010)

For -- indicates trend direction.

Against -- big lag so terrible entry/exit indicator.


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## danno75 (31 January 2010)

Wysiwyg,

Is the charting screen he has up one of the common ones used. I am using Amibroker for stocks but have been reading about Meta Trader 4 in the Forex forums. Is MT4 the go and is it programable like Amibroker (easier I hope).


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## Trembling Hand (31 January 2010)

danno75 said:


> I am using Amibroker for stocks but have been reading about Meta Trader 4 in the Forex forums. Is MT4 the go and is it programable like Amibroker (easier I hope).




NO!!!!

Its a costly retail interface. Have a look at who uses it. Then ask are these the participants that take the bulk of FX profits?


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## Wysiwyg (31 January 2010)

danno75 said:


> Wysiwyg,
> 
> Is the charting screen he has up one of the common ones used. I am using Amibroker for stocks but have been reading about Meta Trader 4 in the Forex forums. Is MT4 the go and is it programable like Amibroker (easier I hope).



Yes it is the standard MetaTrader4 trading platform. MQL (meta-quotes language) is yet another language which can be learned. Plenty of non-profitable codes on the internet to get started, while the platform has a built in basic backtester (remembering out of sample testing is more indicative of possible profitability).
I found an AB code which is similar to this one and works with a  + or - ATR multiplier. The plot swings above or below whenever price crosses and ( I think) bar closes above/below. Hence the severe lag.


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## danno75 (1 February 2010)

TH,

Do you mean 'NO" MT4 is not the go for FX trading? If not what do you reccmmend? I will have an IB account open soon, is their platform ok?

Wysiwyg,

Do you use Amibroker for FX? If so where do you get your data? I am using Premium Data for stocks atm. I gather you would need some sort of feed for accurate data and depending on time frame used that could mean a live feed that updates every minute or so. I wouldn't need that as I have a 12 hr a day 26 day straight roster that keeps me away from day trading but I am sure there are set ups for longer time frame strategies out there.


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## Trembling Hand (1 February 2010)

danno75 said:


> TH,
> 
> Do you mean 'NO" MT4 is not the go for FX trading? If not what do you reccmmend? I will have an IB account open soon, is their platform ok?



 Maybe MT$ is for you. i don't know but to me its overly simplistic and very expensive to trades, yes expensive even with the"free" brokerage & platform.

With IB the interface is crap if you are looking at it in a from the viewpoint of simple & complete trading set-up. If you are looking at it from the point of access to a 'real' market, with close to unlimited customisation/flexibility, the cheapest brokerage a retailer is likely to get, and any the option to bolt on any frontend then you cannot beat IB.



danno75 said:


> I wouldn't need that as I have a 12 hr a day 26 day straight roster that keeps me away from day trading but I am sure there are set ups for longer time frame strategies out there.




Yes plenty of setup for system traders, thou just because you have a auto system from what I know of them the turn on and walk away approach needs to be taken very carefully.


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## danno75 (2 February 2010)

Thanks TH I'm not using MT4 just trying to suss out which path to follow if I decide to give forex a go. For the moment I am playing the OANDA game where they give you a $100k account to test your skills on.  It is a bit of fun while I am finding out how forex works. I think IB have a paper trading platform also, but not sure if that applies to forex or just stocks. The practice is all good which ever way.


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## Wysiwyg (2 February 2010)

danno75 said:


> Wysiwyg,
> 
> Do you use Amibroker for FX? If so where do you get your data?




Amiquote has a connection in the drop down to a mob called "Finam". I don't use Amibroker for FX.


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## danno75 (2 February 2010)

Thanks for the info Wysiwyg, I will have a look at it but from what I have seen around the forum there are better options than Amibroker. 

I want to put together a Forex trading plan similar to the stocks one I am trying to work out. As I don't have time for intraday trading I want a system that I can look at everyday for half an hour or so checking movements over a medium to long term time frame. I realise that this might not catch the same level of profit as watching the screen constantly for a couple of hours each night but in the end it will just be one of the small components that I put together to give a profitable result to my overall investment strategy. I am going to work with similar money management and risk conditions that I use for stocks and adapt them to forex. I don't expect any sort of huge return but if I could get a couple of say 2.5% per month off my capital I would be happy. Thats $250 return from $10000 in one month, I believe in compounding so as each month went by the capital would increase by the profit margin and increase the the next months profit.
Do you think this is a reasonable goal?


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## Wysiwyg (2 February 2010)

danno75 said:


> Thanks for the info Wysiwyg, I will have a look at it but from what I have seen around the forum there are better options than Amibroker.



 AB isn't a trading platform. Amibroker is primarily a charting and system analysis program which suits many of us. Within there are multiple possibilities and coding expertise is a requirement to maximise the softwares full potential.  



> Do you think this is a reasonable goal?



Seems like a reasonable goal to aim for to start off with. Finding out what works and what doesn't, notching up experience, spotting pitfalls, feeling the desire for more and feeling the power of fear. All good stuff hey.


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## Wysiwyg (2 February 2010)

Andrew Forex said:


> *My trading system ″Andrew Forex″*​
> *Currency pair:* any, but better cross-pairs that give good trends
> *Time frame:* any, but usually 4-hour
> I*ndicators:* supertrend, nonlagdot (value: 20)




Andrew, firstly thanks for showing an example of a trading system. 

Secondly would you be able to give an example of what you would do in present time? That is announce at the time (present time) when you enter and exit a pair and at what price so it can be verified. 

There are countless hindsight examples available. It is easy to announce what one would do after the event.  

Thanks.


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## Andrew Forex (3 February 2010)

danno75 said:


> Hi Andrew,
> 
> The system you have shown here is very interesting with good explanations. I am only at the stage of trying to understand properly how forex trading is done. What program are you running for your charts and system that gives the colour change to the lines and dots on the graph? Is it manually done by you or is it part of a program like Amibroker or some other charting software?
> 
> ...




Hi Danno! Thanks! I use Metatrader. It is quite easy and fast in use platform for analyzing and trading. And not only in the forex market but also it can be use in futures/CFD or commodities market (gold, silver, platinum etc.) or (cocoa, coffe, cattle, soybeans etc.), and, of course, in the stock market. That program can be used in analyzing the market as well as in real trading.

Dots and lines in the charts change their color not manually, but the indicators I posted here do that work (in Metatrader).


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## Andrew Forex (3 February 2010)

Wysiwyg said:


> Andrew, firstly thanks for showing an example of a trading system.
> 
> Secondly would you be able to give an example of what you would do in present time? That is announce at the time (present time) when you enter and exit a pair and at what price so it can be verified.
> 
> ...




Hi, Wysiwyg! I have developed my own trading system "Andrew Forex" to trade in the forex market. So, I analyse the market and trade according to that system. The system can be traded in any timeframe, but for trading in the timeframes less than 1 hour, one needs observe the market almost 24 hours a day.

So, I do not announce what one should do after the events. I explain and comment how my system works and how to make trading more successful and profitable using my system in the forex market. If one understands how the system works you'll be able to make forecasts yourself without additional help.

To make my system more comprehensible and understandable in practical use, I can also advise you to watch my video comments of the forex market on my video channel in youtube here: *Andrew Forex youtube channel*

Besides, I am giving my current forex trading review according to my trading system "Andrew Forex" on the following currency pairs: AUD, AUDCAD, AUDJPY, CAD, CHF, CHFJPY, EUR, EURAUD, EURCAD, EURGBP (February 01, 2010):

AUD



AUDJPY



AUDCAD



CAD



CHF



CHFJPY



EUR



EURAUD



EURCAD



EURGBP


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## Andrew Forex (3 February 2010)

And next some more currency pairs: EURJPY, GBP, GBPCHF, GBPJPY, JPY, NZD (February 01, 2010)

EURJPY



GBP



GBPCHF



GBPJPY



JPY



NZD


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## Wysiwyg (3 February 2010)

Andrew Forex said:


> Hi, Wysiwyg! I have developed my own trading system "Andrew Forex" to trade in the forex market. So, I analyse the market and trade according to that system. The system can be traded in any timeframe, but for trading in the timeframes less than 1 hour, one needs observe the market almost 24 hours a day.




Yes good show Andrew. The indicators are useful. 

Hope you are keeping those lovely Ukrainian ladies entertained.


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## Andrew Forex (5 February 2010)

Forex trading review according to my trading system "Andrew Forex", 1-hour timeframe: EURJPY (February 04, 2010)


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## Andrew Forex (3 March 2010)

Trading review: the rally on GBPJPY, 4-hour timeframe (March 02, 2010):


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## CFD (3 March 2010)

Interesting trading ideas/system Andrew, but gee you sure have put it out there on a lot of forums.


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## Andrew Forex (24 April 2010)

CFD said:


> Interesting trading ideas/system Andrew, but gee you sure have put it out there on a lot of forums.




Well, I am interested in a broad discussion of the trading system, and the exchange of thoughts on trading issues.


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