How Wags Trades - TAS System

TAS Forex Strategy Explained

Some of you will read this and some of you won’t; some of you will make money and some of you won’t.

How I go about setting up a trade takes a few minutes in my head but takes longer to explain in writing, so don't be put off by the following as I cram a few minutes into a lot of words.

1. First things first

First of all, my name is Paul, I'm from the UK and have been studying Forex trading for the past 7 years, starting with binary options for 3 years, then switching to Forex and spending many years in despair. I tried 1000's of indicators and strategies on the web until I went back to some basic free indicators and created this strategy.

I simply look for the best position to enter a long or short trade based on the current market conditions of a currency pair, which I call "value territory." You can't easily buy these areas by looking at the price itself, so I built a trading system that clearly indicates when the price is out of sync with the market.

These areas provide the most profitable trading opportunities because when big players want to place an order, whether to change direction or defend/build on an executed order, they are always looking for the best possible value in a given time frame.

My trading system is very, very simple to use and I believe it is unlike any other system I have seen anywhere to date, I am excited to share this system with you all and I believe you will be very surprised with your trading results and the trading system itself.

Well, in my next section I will move on to how to get the best value out of currency pairs as I haven't seen anything online that covers this properly, just half-hearted attempts by part-timers to copy other part-timers' posts.

2. Monetary value

Not all currency pairs are created equal, some move faster than others and have different values ​​per pip.

So let’s look at the movement between currencies, something that most “retail traders” probably ignore most of the time.

*The next point is particularly important to my strategy, especially since I use integers for entry and exit

Ok, let's compare two currency pairs, each pip is worth the same £1, the bet is £1 and my profit target is £100 per trade.

Currency pair (A) moves on average 30 pips per hour, currency pair (B) moves on average 15 pips per hour. This is called the ATR (Average True Range) of the currency pair, so to hit my take profit target of £100 per trade I would need 100 pips. But for currency pair (A) I can roughly assume it reaches 2x faster than currency pair (B), time is money, why would I want to stay in the trade 2x as long to get the same profit, so I adjust my TP, stakes and risk as follows.

*notes! I always maintain a minimum risk to reward ratio of 2:1

Currency pair (A): ATR = 30 pips per hour = £1.00
Bet = £1.00
Target price = 100 pips Stop loss = 50 pips
TP x shares = £100
Trading time = 3.3 hours Maximum loss = £50

Currency pair (B): ATR = 15 pips per hour = £1.00
Bet = £2.00
Target price = 50 pips Stop loss = 25 pips
TP x shares = £100
Trading time = 3.3 hours Maximum loss = £50

As you can see, by adjusting these important variables we can balance different ATR values ​​to our advantage.
Now it gets a little complicated because not all currency pairs have the same pip value (many articles on this topic choose to ignore this).

Scenario 2:

Using the same data as above, but the pip value per £1 share has been changed as follows:
Currency pair (A) = £0.50 per pip Currency pair (B) = £0.50 per pip

Currency pair (A): ATR = 30 pips per hour = £0.50
Bet = £2.00
Target price = 100 pips Stop loss = 50 pips
TP x shares = £100
Trading time = 3.3 hours Maximum loss = £50

Currency pair (B): ATR = 15 pips per hour = £0.50
Bet = £4.00
Target price = 50 pips Stop loss = 25 pips
TP x shares = £100
Trading time = 3.3 hours Maximum loss = £50

As you can clearly see, we always keep the same profit, loss, risk and duration for each trade even if the currency pairs are different, so you can now adjust your trades based on different currency price values ​​and ATR, and you can change it to your liking based on your trading account size while keeping your account risk the same every time.

You may need to make slight adjustments as you go as many currency pairs have different pip values ​​and average true ranges, take the time to do the math and it will benefit you in the long run.

The advantage of this is that you can adjust everything to suit the size of your trading account.

notes! I will provide all indicators and template files that will be used later.

3. Trading tools

Although these are placed in the MT4 Indicators folder, I consider them to be trading tools rather than indicators as they are implemented to allow me to more easily view and scroll through charts, view pip values ​​and average true ranges for currency pairs.

*notes! These tools will be available later in the download package.

1) ATR chart markers <br> This forex tool shows the current average true range and the previous average true range for the current chart currency pair and chart time frame, I set it up based on the past 200 periods to give me a clear idea of the average movement I can expect from each currency pair.
2) Point Value Lite <br> A simple tool where you can see the per pip value of the currency pair you are currently looking at, you can adjust the lot size to suit your trading account, but if you are good at math you can leave it at the default value.
3) Pulse pressure meter decimal <br> Just a tool that shows you the plus and minus points of your current trade for easy exit.
4) ACP Arrow Replacement Pair <br> A custom tool built by my friend Chris with some input of my own that puts buttons on the chart where you can quickly browse currency pairs and also use the keyboard arrow keys to scroll which makes it much faster
5) ACP multiple pairs <br> An addition " ACP Arrow Change Pair ", when ACP Arrow Change Pair is installed on chart one it will allow chart two to move on the same currency pair but on a different time frame,,, very cool, right?



The more charts you add, the more you can view at the same time and the more it can do, but we only had to display one or two TFs, depending on our money-making preferences.

4. Basic knowledge

1) I will look at the hourly chart to understand my overall view and entry points, and sometimes the 15 minute chart to fine-tune my trade entry points.
2) My trades can last from a few hours to a few days, sometimes even longer than a week, depending on the market exit point.
3) I only use 2 technical signal indicators on my charts, the others are tools.
4) I exit trades based on the price and indicators shown and tracked.
5) My trading moves will vary based on the range and volatility of the currency pair.
6) When my system tells me to quit, I'm happy to quit, even though I might miss out on extra points.
7) There are many, many trade opportunities every week, and I won't try to imagine something existing when it doesn't exist.

5. Get started

The first thing I do every morning is scan the chart on a zoomed out basis so I can eliminate any pairs that don't look suitable for any of my trading setups and pick out pairs that look like trades are ready or can be formed in the day ahead. I also rescan throughout the day because prices change quickly.

NOTE: My signal indicator is not in the picture below

So some of the things I look for are:

1) Whether the price trend is lower or higher.



2) Is the market price in the range high or low?



3) Does this currency pair have no potential for my strategy and needs to be ignored for now.



A simple scan of the market only takes a minute or two.

I use custom indicators written by myself and my trading friend (Chris) to easily browse all currency pairs in seconds.
notes! I will give this away for free later

6. Signal indicator

I used 3 indicators on the chart, two of them are very basic free indicators from the MT4 indicators folder and the third indicator is just a magnification of the price area (integer), the latter can be downloaded directly in mql5 market for free or you can download similar indicators on the web.

Note: I will provide an integer indi in the policy file later.

1) Integer indicator <br> I won't go into details as to why. How and what this indicator does, I use it in the 1000 and 500 areas and also respect the 750 and 250 areas, combined with the rest of the system it becomes a very lethal combination and you can clearly see how the price reacts around these numbers below. The more you look at the chart, the more you'll be able to see 750 and 250 without cluttering your chart, so I'll just keep the whole and half.

2) OBV (balanced volume)
This is the indicator I use to determine when the market is about to change, it is a leading indicator that predicts where the price will go in the future before the move occurs, as opposed to a lagging indicator that eventually catches up with the price, like many moving average based indicators, with this indicator the price needs to catch up to the OBV, and this is where we get imbalanced.


3) Moving average <br> This indicator creates pretty much every other indicator and shows pretty much the same thing when you try to enter a trade, I have to admit I hated this indicator for years, tried all types of numbers, some looked great in one part of the chart and terrible in the next, it drove me crazy for years and it probably would still do that if not combined with the other 2 indicators, haha. I'm showing you a garbage example of a moving average in the image below because I don't want to give up on the game just yet


In the next stage I will show you my entry strategy by combining indicators together to create my trading system.

7. Strategy explanation and entry setup

Well this is the part you may have been waiting for um you all may have scrolled down the page and had a look before reading the rest am I right so let's tie it all indis together to explain how this strategy works and show you some setups my entry will cover imbalance trades as well as confluence trades no two setups will be exactly the same as what you are doing but from there you can see what to look for so let's get started.

As I write this, I'm going to show you some of the current market setups because I can't stand people pushing their strategies and showing entries of past data, what's the point.

As I said before, I trade hourly charts, so my setup is as follows:
Stop Loss = 100 pips
Tp = Opposite divergence of OBV or SL profits.

Note: I will add more about this later in my Transaction Management section

1) Explain strategy through indicators

I like to look at how price reacts in conjunction with OBV (on balance volume) around round numbers, if the OBV is not balanced with price around these areas it means entry value can be found in any market condition, but we are looking for real value and just looking at price with OBV and round numbers is not enough.

I like the 200 EMA and the 200 SMA because price reacts very well to these moving averages, people always think that when the price is above the 200 moving average we are bullish and when the price is below the 200 moving average we are bearish, but we have been caught in this scenario many times and I am sure it is a little game the big market makers play with retail traders. I also use the 50 MA on my charts because this keeps you in the trade and sends a strong signal that the price is going up. That's about to change.

Main Chart Window <br> So on my main chart my signal indicators are as follows, the round indicators are set to 1000 and 500 round numbers and the 200 SMA, 200 EMA and 50 EMA on the closing price, I like to have both because the price reacts to the 200 MA as it gives me more confidence in the trade entry, just for psychological reasons to be honest.

Separate chart window <br> In my subchart I have OBV, there are very few options for this indicator and I have set it to default, I will not explain how OBV is calculated or anything like that, if you want to know more about balancing volume, google it.
This is where the magic happens, as I now apply another 200 EMA and 200 SMA to the OBV in a separate chart window, this shows where the smart money is relative to my entry point, let's take a look.
Following are the stages of deal setup

The relationship between price and OBV and moving averages.
When I set my sights on a trade entry, the first thing I look for is price around the 200 moving average, and what OBV shows me is around the 200 moving average, and as you can see below, the smart money is below the moving average, and we're not even considering fake bullish moves that try to trick buyers and drive them out of the market.



Price and OBV local differences <br> There are 6 entries in the two boxes above and we can easily enter all of them to take profit without being within 50 pips of the SL, this is more of a global divergence but we can further confirm our entries with local divergence as shown below;
To see it more clearly, I have removed the MA



Integer Price Reaction <br>If the above settings are not enough, then consider adding integers for more precise entries, where you can enter multiple times, just like the big players unload their large orders, enter on the first signal and see the trade, or even wait for local divergences if you are patient, now this is something only you as a trader can decide.
Below is a zoomed-in screenshot of the same trading setup, just to show the power of round numbers.



Trade Overview <br> Let's summarize our 100 pip SL and a currency pair trading opportunity with multiple entries and divergence exits or one move of SL 100 pips, trade management will actually be covered in the next section. Since no opposite OBV divergence occurred, we would actually be hit with a trailing stop on two trades. If you selected all 6 entries, that's a total of approximately 2,600 pips.



I am now going to post some images of the current time frame so you can test your eyes, this is all current live data, no data taken from last month etc so you can see relevant trades and not like youtube crap haha, next I move on to trade management and exit so enjoy the images.

Next comes transaction management and exit.

8. Exit and management

Force quit via SL <br> Okay, closing on one key factor to maximize profits and stay in the trade as long as possible, you have to give your trades room to move without taking too much risk, I like to give 100 pips SL on higher ATR pairs and trail SL, move to breakeven after 100 pips profit and then move 50 pips each time as it moves from each round, always keeping 100 pips, on lower ATR pairs I tend to move downwards as ATR drops, to 75 points, then to 50, once the trailing stop is hit, obviously the trade is over.

Exit via OBV Divergence Management <br> When the OBV shows a divergence in the opposite direction of a trade around a round number, this is a manual close of the trade as this is our entry signal and also our exit signal, so keep a close eye on your trades to maximize your potential profits

https://technicalanalysisstrategy.co...it-800x369.png

The last part completes how I trade the Forex market and later I will add templates and indicators for your own use.

Please use indis and template files from the post

https://www.forexfactory.com/showthr...0#post13009420

So we all have the same opinion