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Old 02-13-2007, 10:40 PM
leveragefx leveragefx is offline
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Join Date: Feb 2007
Posts: 60
Trend Snapback Forex Trading System
Our Trend Snapback Trading System works because of the following.

1. Trades with the longer term trend after a short term pullback.
2. Uses Volatility based trailing stops which minimize losses and maximize gains.
3. Has a high winning percentage because it takes advantage of where traders have their positions. It knows that losing traders are likely to exit their losing trades where we are getting in. This means that the markets don't typically move much against us after we've entered. In one backtest I did even with a 4 pip stop the system was still 46% winning!
4. We suggest using our ratcheting system on choppy days and our normal 3 ATR stop on trend days to catch the 40+ pip moves.

Example #1: Trend is down so we sell short term up move at resistance.

The trend snapback sell signal shows up around 1705, the stop is automatically calculated based on current volatility. Because the makret had been in a downtrend and had already fallen 70 pips we adjust the ratchet feature to tighten the stop once it moves 5 ATRs in our way. Once our first profit objective is hit we TIGHTEN THE STOP and lock in the profit! This example is perfect as we have the 95% Hourly Statistical High right above us and that contains price as expected. The ratchet trailing stop catches the majority of the move and the market also finds resistance at the Pivot Point.



Please view our Hypothetical Results Disclosure and LeverageFX Disclosures

Last edited by leveragefx : 06-30-2007 at 07:24 PM.
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