The Set and Forget Pivot Net system

Last updated August 13, 2009

This method has been redesigned and is best understood here http://www.forexfactory.com/t/102967...-system-1.html



"Fit-and-forget Pivot Network" system

I have been trading Forex for about a year now and I have found that "picking the bottom or the top" is a reliable way for me to make money for my broker.

The less I modify the market, the better I perform.

I do use stop losses. I drank a lot of unstoppable Kool-Aid, which tasted good for a while, but eventually the poison killed my account. Unless you have a huge account or are willing to trade with 1 pip = $0.01, it's not worth your time. You can make money doing this, but it takes a long time and you'll sweat a lot.

About my system (I'll leave my opinions on my blog).


This is a set-and-forget system. Used for pairs. It uses one of the few predictive indicators - pivot points.

Daily PP is calculated at 00:00 EST/23:00 CST (my time)/4:00 GMT. I use Oanda and that’s when they start a new daily menorah. Oanda also has a feature where you can easily add daily PP. Although for some reason S1 and R1 are usually 1-2 points away from the actual PP, while S2 and R2 are 2-3 points away from the actual PP. I don't understand why. So if you know please let me know, but I have used their PP so far and they have always worked. Cancel all orders before 11:00 EST the next day. Typically, orders triggered during the hour when the London/US markets overlap do not move much.

Calculate the distance between R1 and R2 and multiply that distance by 0.667.

For example, if the distance between R1 and R2 is 50 points, the multiplied distance will be 33.3.

So you have R2-R1=X then X*.667=Y

X=TP and Y=SL

This works the same way for S1 and S2.

Schedules are Monday, Tuesday and Wednesday evenings.

The reason is that sports are best on Tuesday, Wednesday and Thursday nights. I have found poor results from trading this system on Sunday, Monday and Friday.

Calculate the percentage of your account you wish to risk (I recommend no more than 1-2%) and divide it by your stop loss. This will tell you what each point value should be. It will also provide a risk:reward result of 1:1.5 (in a perfect world without the spread it would be 1:1.5, but actual results tend to be 1:1.30-1.45)

You decide to set these parameters only if the closing candle of the previous day moves less than the average of the daily moves of the previous weeks. (Do not include Sunday in the weekly average) The reason I omit Sunday is that I find that Sunday is usually an adjustment day or a very small change, which makes Monday's PPs very small, and they are not very accurate.

Another detail adjustment.
I add 2 pips to the spread for each entry and exit position. But I left the SL in the same place. It saves me the frustration on those days when price action marks S1 or R1 and pulls back completely.

Here is my formula:

R2-R1=X
X*.667=Y

R1 + 2 points = Buy
R2 – 2 points = TP
Y – R1 = SL

Money management
Y=1-2% of account

All formulas are reversed when using S1 and S2.

Below is a screenshot of this trading system.

The previous day's change from HH to LL was 112.2, and the previous week's average was 137.9. Therefore, the only valid signal from the previous night was aimed at the EU.

I set the sell signal at 1.46652, stop loss at 1.46952 and take profit at 1.46272.

I also set up a buy signal on another account at 1.47823. As shown below. Apparently there was no trigger. The target price is 1.48494 and the stop loss is 1.47329

I hope this helps some people. I scoured the internet looking for a "set it and forget it" system and found one I designed myself that works just as well or better than most people do. It's all price action and uses one of very few predictive indicators. Old school pivot points.

Since this is the first system I've shared, I'm sure I'm missing some details, but I'll try my best to make it

This is my thank you to everyone on this forum and all the information I have learned in FF.

-Blue King-