$100 trading | Foreign exchange EA download-MT4/MT5 resources-MetaTrader 5 resources

****************** Please note that this system is no longer trading. ***************************


Hello everyone!

Why trade for $100?

After a long time of thinking and crunching numbers, calculating and eliminating more possible risks, I am now so confident in this strategy in my head, mostly on my spreadsheet, that I have chosen to test it now on a live account with, you guessed it, $100. Well, the exact number is 101.03. We’ll see if this thing grows over the next weeks, months, years…

I would also like to thank Dreamliner and his topic "Super Carry Trading System" from which I was inspired.

Preface:

It's a boring system/method that generates points slowly but steadily. If you are looking for fast and furious scalping or some other magical and colorful indicator or other MA crossover system, this is not the place to go.

On the contrary, if you are a patient trader who wants to protect your capital at all costs and wants to hold it for the long term, read on, this may interest you.

System Overview: In a nutshell, this is another grid system, but with advantages over the "standard" grid system. This edge comes from:

First, you! You have to sense the market. Yes, it's easier said than done, I mean you have to be careful not to apply the grid blindly!

Second, the dynamic side of the legs versus the static legs in a standard grid system. The legs get bigger or customized when a downtrend unfolds or trades at historically high prices.

Third, only use swaps to pay for currency pairs, preferably (AUD/JPY). We get paid to keep the trade open, not to hope for a reversal or to close the trade at a loss.

rule:

1 - No price indicator is required, but you can use oscillators on daily and weekly timeframes to check if we are overbought/sold.
2 - Long orders have no stop loss, only short orders have no stop loss.
3 - To use low leverage (approximately 10:1), adequate margin reserves must be maintained.

What you need:

2 - Reserve more money in case we get into a downtrend at the beginning.

Which pair we will play and why: AUD/JPY

1 - While we wait for the trade to be profitable, it pays overnight interest during the period of loss.
2 - Volatility is high enough that you can profit on the way up, and you can profit on the way down during the pullback.

Strategy:

We calculate buy levels starting from 81.00 and increasing them by 0.3 (30 points): 81.30, 81.60, 81.90, etc.
When a new level is reached, you can take profits or set a trailing stop based on the previous level, and keep doing this until you feel the trend is about to end.

But how do you know a trend is over?
Well, your last order will be open for a day, two, three days or more... and your oscillator is definitely overbought...

Then, when the trend reverses, wait for the dust to settle or your (daily) oscillator to be close to or at oversold levels, and then you start buying declining stocks in the same way, but apply the following multiplier:

1, 1, 1, 1, 1, 2, 2, 2, 2, 3, 3, 3, 4, 4, then 5 for the following...

We subtract 1*0.30 for the first 5 levels, then 2*0.3 for the next 4 levels, then 3*0.3 for the next 3 levels, and so on...

Let's say we are nearing the end of the downtrend and start buying at 78. Apply our buy-in multiplier:

78 (level 0)
77.7 (level 1 = previous level - 1*0.3)
77.4 (Level 2 = previous level - 1*0.3)
77.1 (Level 3 = previous level - 1*0.3)
76.8 (Level 4 = previous level - 1*0.3)
76.5 (level 5 = previous level - 1*0.3)
75.9 (level 6=previous level-2*0.3)
75.3 (Level 7 = previous level - 2*0.3)
74.7 (Level 8 = previous level - 2*0.3)
74.1 (level 9=previous level-2*0.3)
73.2 (Level 10 = previous level - 3*0.3)
and so on...

Of course, when doing this, you may need to add additional cash to your account to avoid a margin call. However, you can also skip some levels or temporarily stop buying if you also feel that the price is heading south, or that we are at the beginning of a major downtrend, or that the price is well above historical averages.

benefit:

1. You become emotionally detached from your deal. If the price goes up, you take a profit, and when the price goes down, it's nothing more than an opportunity for future profits. This is actually the idea behind this strategy!

2. No more complex charts with dozens of indicators. This saves you time and makes you more confident that the strategy is easy to manage.

3. You get paid for holding a losing position while waiting for the price to recover.

If you are curious about this, I have started trading on a live account. So I regularly post my trades, open positions, account balances, etc.

Remember, we want to exercise caution and protect our capital. If you want to get rich quick, this is not for you.
Also note that since there is no system that can be trusted, you should use a demo account rather than real money and do your due diligence while testing the system.

Curious and ready to go on a long journey with me? Follow the topic and you are welcome to leave comments.