132# Tunnel Strategy Trading System
Submit by JanusTrader 08/05/2012 (Written by Ceritx)
This system is very easy to use but you need discipline and
keep my simple rules because if you will not follow it then you
will get in trouble or loss your money. I test this system in
every market conditions and I know it from top to button that
is why I set simple rules which you have to keep if you want to
success. I hope you will have fun with it and what is the most
important make lots of money.
The best pair to use my system is:
EUR/JPY (this is the best pair but you can use any pair with
different adjustment)
I tested my system with many other pairs but this one is the
best and very profitable.
You can use it with any other platforms but I found this as the
best one.
Leverage:
400:1
Indicators:
EMA (moving average – exponential, close)
144
169
This is actually tunnel and the most important part of my
system.
Time frame:
4 Hours
Entry:
Minimum 60 pips from middle of the tunnel but the more away
from the tunnel is the trend the better and safer.
Sell entry:
Sell entry will be place above the tunnel.
Buy entry:
Buy entry will be place below the tunnel.
Pending order:
After placing an order you setup 2 pending orders minimum 30
pips away from each other and the next pending orders will be
40 pips away just for safety.
Take profit limits:
For all your positions you always setup T/P limits to the same
price.
The actual trade
I am using 4 hour time frame for entry which I found the most
precise for my system because of the position of tunnel (EMA
144/169). When the trend is above the tunnel you have to place
sell entry and when below buy entry. The reason why is
because the trend is always coming back to the tunnel and your
entry will be 60 pips minimum or more from middle of the
tunnel. For example middle of the tunnel is at price 163.00 so
your entry for sell will be 163.60 or higher and for buy 162.40
or lower no closer and never if the trend is in the middle of the
tunnel. After first entry you have to setup 2 pending orders
minimum 30 pips or more between every one of them and setup
T/P limit to your desire profit.
Example
The trend is at price 163.60 (60 pips from middle of the tunnel)
you place sell entry and setup 2-3 pending sell orders first at
price 163.90, second at 164.20 and third at 164.60 with T/P limit
as well. If the trend goes short you will take your desire profit
from one entry but if the trend goes long and hit your pending
orders you will take your profit from 2-3 or more positions.
The reason why I am doing this is simple mathematic.
Example
Balance account: 1000$
Leverage: 400:1
1 lot: 1$
Spread: 0 pip
Order positions: 1st sell entry
2nd pending order sell
3rd pending order sell
Let say you want to make 30$ profit out of one trade
Trend position 163.00 (60 pips away from middle of the tunnel)
That’s your sell entry and your T/P limit will be set at price
162.70 (30$ profit)
Imagine the price raise to 163.30 level and the trend hit your
first pending order now you need to make 60 pips to take your
30$ profit.
Instead of waiting to fall price to 162.70 level and make your
30$ profit you place sell order again and set your T/P limit to
163.00 in both placed orders (I mean 1st sell entry at 163.00 price
now T/P limit set to 163.00 instead of the firs T/P limit at 162.70
price and 2nd sell entry at 163.30 price set T/P limit to 163.00
price too) and as you can see now you need to make only 30
pips to take your profit of 30$ instead of making 60 pips.
Now the price raise to 163.60 level and the trend hit your
second pending order and you set T/P limit in all of the 3 entry
to 163.20 price so now you need to make only 40 pips instead of
90 pips to take your 30$ which is less then 50%.
Price will reach the 163.20 level and all positions are executed
Result in 3 executed positions
1st -20$
2nd +10$
3rd +40$
Total profit 30$ (30pips)
This is just an example and of course you will not take only 30$
profit and it is only up to you what profit you want to take.
The Rules
I. Do not entry when the trend is in the tunnel.
II. Do not use more then one pair.
III. Use very small lot size per position so you can open more
positions without getting margin call (balance account
1000$ - 0.1 lot, 5000$ - 0.3/0.5 lot, 10.000$ - 0.5/1.0 lot,
50.000$ - 1.0/3.0 lot).
IV. Do not use this system with live account before you feel
100% confident after testing it with demo account (very
important).
V. Be patient and wait for your profits and try to do not close
your open positions before you reach the profits. It is only
demo so do not be scared and keep testing so you will
know what to expect next time.
VI. Failure is the best teacher.
VII. Keep testing and create your own rules which will suit to
you and find your own way how to use my system
VIII. Stay cool no matter what.
IX. Keep moving T/P limit to your desire final profit and better
to take smaller profit than wait too long for larger one.
X. Keep it simple and enjoy it with fun.
XI. Use only 400:1 leverage.
XII. Use minimum 30 pips spread or more between pending
orders the more the safer and this is extremely important.
XIII. Avoid margin call.
XIV. Set 2 pending orders after placing first entry with T/P
limits.
XV. Do not place entry closer than 60 pips away from middle of
the tunnel.
XVI. Set your own adjustment the higher the safer.
Share your opinion, can help everyone to understand the forex strategy.
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