264# Pip Accumulator Trading System

Submit By Joker 17/12/2012

LONG ENTRY RULES
The Master Probability number shows the overall probability of the direction of trend. Therefore, when looking for a long entry we need to confirm that the master probability is at least greater than 20.
A Small Square on the chart shows a sharp turning point, it indicates that the previous trend is exhausted and prices might go in the other direction. Once you have deployed the indicator you will wait until a new square appears. A green square indicates that the price is expected to move up.

SETTING STOPLOSS
Setting a predefined stoploss is crucial in Forex Trading, it helps to manage risk. The Pip Accumulator strategy uses two different stoploss placement methods, in order to diversify between different methodologies and avoid temporary drawdown. This further helps to obtain profitable and consistent results.
Set stoploss 10-20 Pips below the recent dip or trend box low.
Use 12 period atr value shown on the indicator to identify the stoploss level.
In order to set to the different stoploss level you should open 2 trades for each valid signal.

SETTING TAKE PROFIT
Setting a predefined takeprofit is similar to setting stoploss. If you are trading multiple lots you set different take profit levels for individual trades.
Set Take profit at the recent swing high or trend box high.
Multiply 12 period ATR value by 1.5 - 2 to identify the take profit distance in pips.

EXIT
There might be times when neither the take profit nor stoploss is triggered but the price moves to a point where it is no longer ideal to proceed with the current trade. Therefore you need to close the trade at a prevailing price.
The following are situations when you should exit a trade.
Red square appears in case a long trade is active.
Master Probability is equal to or less than 0.

SHORT ENTRY RULES
Short entry rules are the opposite to long entry rules.
Master Probability numbers show the overall probability of the direction of trend. Therefore, when looking for short entry we need to confirm that the master probability should be less than -20.
A small Square on the chart shows a sharp turning point, it indicates that the previous trend is exhausted and prices might go in the other direction. Once you have deployed the indicator you will wait until a new square appears. A Red square indicates that the price is expected to move down.

SETTING STOPLOSS
Set stoploss 10-20 Pips above the recent swing high or trend box high.
Use 12 period atr value shown on the indicator to identify the stoploss distance in pips.
In order to set to different stoploss level you should open 2 trades for each valid signal.

SETTING TAKE PROFIT
Setting predefined takeprofit is similar to setting stoploss. If you are trading multiple lots you set different take profit levels for individual trade.
Set Take profit at the recent swing low or trend box low.
Multiply 12 period ATR value by 1.5 - 2 to identify the take profit distance in pips.

EXIT
There might be times when neither the take profit nor stoploss is triggered but the price moves to a point where it is no longer ideal to proceed with the current trade. Therefore you need to close the trade at prevailing price.
The following are situations when you should exit a trade.
Green square appears in case a short trade is active.
Master Probability is equal to or greater than 0.

LONG TRADE EXAMPLE
We will enter long on a green square after confirming the master probability is greater than 20.
The Following diagram shows a long trade entry at 1.4255.

In the pictures Pip Accumulator forex system in action.

Stoploss1 was set a few pips below the immediate swing low at 1.4222 whereas stoploss 2 was set at 1.4210 i.e. 45 pips ATR value at the time of trade entry.
Take Profit 1 was set at immediate swing high at 1.4372 shown by the green line. Whereas take profit 2 was set twice the ATR stop loss distance i.e. (45*2 = 90) at 1.4345

SHORT TRADE EXAMPLE
We will enter short on a red square after confirming the master probability is greater than -20.
The Following diagram shows the short trade entry at 1.4498 ,

Stoploss1 was set a few pips above immediate swing high at 1.4552 whereas stoploss 2 was set at 1.4523 i.e. 25 pips ATR value at the time of trade entry.
Take Profit 1 was set at immediate swing low at 1.4332 shown by the green line. Whereas take profit 2 was set twice the ATR distance i.e. (25*2 = 50) at 1.4448.

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