Author:mer071898

Indicators,template and EA powerswing

Hey everyone, I've decided to put my system up on the blocks for everyone to try out. Now that my PowerSM EA project is off and running, I have a little more time to dedicate here on the forum to answer questions and provide help with this system. I developed this method for those, like myself, who can't dedicate a lot of screen time to trading. I, myself, run a successful business with my brother and for me to be up at 2 a.m. eastern everyday to trade intraday was getting to be too much. Now, all I do is come home from work, check on my trades around 6 p.m. for the new trading day and I'm done.

The advantages to trading this system are:

1) More free time for other things
2) Ability to handle more pairs to trade
3) Positive swap
4) Ease of use
5) No need to be up early in the morning

Some disadvantages:

1) Do not catch all the little swings from trading intraday
2) Negative swap (only if you take these trades, I don't)
3) Larger drawdowns

Since I watch so many pairs I can afford to only take the positive swap trades as I mentioned above. A person could trade this with two separate accounts, one of which would be a swap free account just for the trades with negative swap. But most brokers will charge you something anyhow for trades held overnight, on average $5.00 per lot, some will vary. Why go through the hassle when there are so many pairs to trade .

Like all systems, everyone has there preferences on how they would like to trade it with different parameters and inputs and I encourage those who try this out to experiment with it as you wish, all I ask is just please provide some input if you feel there is something that will improve upon what is here.

The broker I currently use is ODL Securities. You may obviously use who you choose to use as I have pondered using an ECN broker to get better spreads, but since I am not a greedy person, 2-5 pips will not make a whole lot of difference to me personally. I also have the tendency to trade only in the direction of the positive swap of the pair. I like ODL because they offer pairs like TRY/JPY, USD/TRY, and EUR/TRY. The 15-20 pip spread is a little brutal but the swap rate more than makes up for it especially if you have a trade going for several weeks or even a month or more.

Now to the basics:

Indicators and settings


Main Indicators

1) ZigZag_Pointer_alert_email- Default

2) Murrey_Math_Line_X_eng- Default

3) #MTF_Stochastic (Indicator window 1)

Inputs- 1440, 14, 3, 3, 0, 1
Levels- 80,50,20, line- Solid, Color- Crimson
Colors- Crimson, Width- 2

4) Laguerre-ACS1 (Overlay in Indicator window 1)

Inputs- .382, 1000, 2
Levels- .85,.15, line- Solid, Color- Blue
Colors- Blue, Width- 2

5) Trend Power Indicator window 2)

Inputs- 14, 4, 13
Levels- .5,-.5, 0, line- Solid, Color- DimGray
Colors- Red, Width- 1

6) Solar_Winds_Alert (Indicator window 3)

Inputs- 21, Alert- False
Levels- .3,-.3, Line- Solid
Colors- Blue, Red- Width- 4

Optional Indicators

7) Magnified market Price- Optional, adjust to your liking

EA's

MTP1.3- Manage Take Profit EA- Default, you can adjust as necessary.

Templates

Powerswing Daily
PowerSwing Weekly

Entries

I have a tendency to be very strict on my entries. If just one indicator doesn't jive with the others, I don't get in.
First thing I look for is what the ZigZag direction is. Even though it is a repainting indicator, I have still used it effectively on higher time frames with minimal issues. If we have a blue arrow we look for long trades only, visa-versa for red arrows.

Once we have a direction, we look for the Laguerre, Stoch, and Trend Power to breach their respective levels roughly around the same time in the same direction. Use the ZigZag Pointer and the Solar Winds as a filter. Just like the ZigZag, the Solar Winds indicator will repaint but is not as drastic as on the lower timeframes. This is why I've put the levels of .3 and -.3 on the Solar Winds to act as an "No Go Zone" because as we all know when you refresh after a couple of days or restart MT4 the bars can change. This buffer zone act as a filter to force you to wait until it touches or breaks this zone once all the indicators are in sync. I try to wait until the bar color changes and breaks out to enter because I have seen it dip into the zone and stay there for several days up to a couple of weeks only to reverse on me.

Exits

I leave these up to the discretion of the trader but what I use is one of three criteria.

Auto:

1) Use the MTP1.3 EA (Set it and let it run)

Manual

1) Exit at new ZigZag arrow or,
2) Close when Solar Winds re-enters the "NO GO Zone" or,
3) Close out partial lots out at each Murrey level

Stoploss

General I will place a stop at the next Murrey level up or down from my entry. If price is at an Extreme Overshoot level (+2/8 or -2/8) place your stops 100 pips above or below.