PowerSwing System For Long term trading

Hi everyone, I decided to put my system together for everyone to try. Now that my PowerSM EA project is closed and running, I have more time to devote to the forums answering questions and providing help with the system. I developed this method for people like me who can't devote a lot of screen time to trading. Myself and my brother run a successful business, and it was too much for me to wake up at 2 a.m. Eastern time every day to trade intraday. Now, all I do is come home from get off work and check my transactions around 6pm. New trading day and I'm done.

The advantages of trading with this system are:

1) Have more free time to do other things
2) Ability to handle more trading pairs (I will use 20)
3) Positive swap (especially TRY currency pair)
4) Easy to use
5) No need to get up very early in the morning

Some disadvantages:

1) Don’t catch every little move in intraday trading
2) Negative rollover (I would not if you do these trades unless the rollover is very small)
3) Larger drawdowns due to larger stops

Since I look at so many currency pairs, I can only trade positive swaps as described above. One can trade with two separate accounts, one of which is a no-swap account, used only for trading with negative swaps. But most brokers will charge a fee for overnight trading anyway, averaging $5.00 per lot per day, although some will vary. Why go through all this trouble when there are so many currency pairs available for trading? .

As with all systems, everyone has their own preferences on how to trade using different parameters and inputs, I encourage those trying this to try other indicators, all I ask is that if you think there is something that could improve what is here, please provide some input.

warn! ! ! !


***Before we begin, I would like to emphasize to everyone that the Solar Wind and ZigZag pointer indicators are redrawn indicators and are only used for filtering, not for entering criteria! *** Additionally, anyone who trades any system faces risks. We all know that losses can and will occur, so always use a smart money management plan.

The broker I currently use is ODL Securities. Obviously you can use whoever you choose to use as I have considered using an ECN broker to get better spreads but since I'm not a greedy person 2-5 pips wouldn't make a huge difference to me personally. I also tend to trade only in the direction of currency pair swaps. I like ODL because they offer currency pairs with excellent swap rates, such as Turkish Lira/Japanese Yen, USD/Turkish Lira, and EUR/Turkish Lira. The 15-20 pip spread is a bit brutal, but the swap rate more than makes up for it, especially if your trade lasts for several weeks or even a month or more.

Now for the basics:

Indicators and settings


Main indicators

1) ZigZag_Pointer_alert_email or zigzag-pointerv2- default

2) Murrey_Math_Line_X_eng -Default

3) #MTF_Stochastic (indicator window 1)

Input - 1440, 10, 3, 3, 0, 1
Color - dark red, width - 2

4) Laguerre-ACS1 (overlaid in indicator window 1)

Input - .382, 1000, 2
Level - 80, 20, Line - Solid, Color - Black Color - Blue, Width - 2

5) IFT-RSI-ACS (overlay in indicator window 1)

Input - 3, 7, 1000
Color - Green, Width - 2

6) Trend Strength Indicator Window 2)

Enter - 14, 5, 13
Levels - .40, -.40, Lines - Solid, Color - Dark Gray Color - Red, Width - 1

7) SolarWinds-ACS3 (Indicator Window 3)

Input - 10, Alert - False, Smooth - .7, Options - 2
Level - .3, -.3, Line - Solid Line Color - Blue, Red - Width - 4
EA's

MTP1.3 or MTP 1.8 - Managed Take Profit EA - Default, you can adjust it as needed.


Entries

I tend to be very strict with my entries. If just one metric is inconsistent with the others, I won't include it.
The first thing I look for is what the zigzag direction is. Even though it is a repaint indicator, I still use it effectively on higher timeframes with very few issues. If we have a blue arrow we only look for long trades and vice versa if there is a red arrow.

Once we have a direction, we look for Laguerre, Stoch, IFT-RSI-ACS, and Trend Power to break above their respective levels in the same direction at roughly the same time. Use ZigZag pointers and solar wind as filters. Just like a zigzag, the solar wind indicator will repaint, but not as dramatically as it did on the lower time frames. That's why I set the levels of Solar Winds to 0.3 and -.3 as filtering "zones" because we all know that when you refresh or restart MT4 after a few days, the bars may change. This buffer acts as a filter, forcing you to wait until all indicators are in sync before hitting or breaking out of the zone. I try to wait until the bar changes color and breaks out before I get in because I've seen it get stuck in that area and stay there for days to weeks only to reverse back on me. SolarWinds-ACS3 provided by achandrasekaran99 has an option #1 which allows it to not repaint. My problem with this setup is that the input confirmation it provides is too late for my needs, so I use option 2.

quit

I leave these up to the trader's discretion, but I use one of three criteria.

automatic:

1) Use MTP1.3 or MTP 1.8 EA (set up and run)

manual

1) Exit at the new zigzag arrow, or,
2) Shut down when the solar wind re-enters the "forbidden zone", or,
3) Close some plots at each Murray level

stop loss

Typically, I would place my stop above or below the nearest Murray level or Fibonacci retracement level. If the price is at extreme overshoot levels (+2/8 or -2/8), set your stop loss 200 pips above or below. Remember these are just guidelines and stops can be larger or smaller depending on many factors such as Murray level strength, Fibonacci retracements, pivots or whatever you use.

***I would like to thank TimeFreedom who posted updated versions of ZigZag_Pointer V.2 and MTP 1.8 EA in posts 9 and 10, either of which will work***

***Also achandrasekaran99 for the newer SolarWind-ACS3 and IFT-RSI-ACS indicators that I have adapted to this system. ***

***New templates added to post #1 and post #79***