跟随领导者系统 (FollowTheLeader System)

Who wants to test the FTL System?

The rules are quite simple, and best of all, no indicators needed - just the candlesticks! Especially made for newbies and forex dummies, like me.

Time Frame - DAILY (but seems to be ok with H4, H1 too)
CURRENCY - GBPUSD (applicable to all, I suppose)

When to BUY or SELL?
At the beginning of the day, just check the previous candle. If it is positive, then BUY, if negative, then SELL

TP - let it ride, until a SL is met

SL - on BUY, if the candle reverses and reached the CLOSE of yday; or if the current candle closes on lower (next candle we open SELL)
SL - on SELL, if the candle reverses and reached the CLOSE of yday, or if the current candle closes on higher (next candle we open BUY)

Always trade with the direction of the last candle. So, if the SL of the day was hit, but it came back and went to the direction of the previoius candle, we will open a new position again. But if it is a reversal, we dont open a new position.

I think this can be best explained by using some actual candlesticks, GBPUSD, Daily timeframe

http://img17.imageshack.us/img17/593/gudaily.jpg

Jan 2 OHLC -
1.4565 1.4576 1.4377 1.4546

Jan 5 OHLC
1.4546 1.4738 1.4433 1.4699

Jan 6 OHLC
1.4698 1.4992 1.4503 1.4916

Take note of Jan 2 candle, it is a BEAR. So for Jan 5 we open SELL trade, SL at Open price of Jan 2 (1.4565). Jan 5 opened at 1.4546, reversed and went up, hit our SL. -19 pips + the 3 pip spread, net loss of 22 pips for the day. We DO NOT open BUY position on this day because previous candle was a bear.

Day #1 Next day, we BUY (based on Jan 5 bull candle), SL at Open of Jan 5 (1.4546), again it went to a low of 1.4503, thus hitting our SL and a loss of 153. But lo and behold, it went back up again, and went pass our previous day's close. Since we are on a BUY trend, we opened a new position. Thus ending that trade with a nice +218, for a net profit of +59pips for the day. We only open a SECOND TRADE for the day, if it is on the same trend.

Jan 7 (#4) - no doubt a winner on BUY. +175 pips
Jan 8 - another winner with BUY +118 pips

Jan 9 (#5) - the candle closed lower, thus we close the trade, and end the day with

So far, as of now, we have +276 pips.

If we go on, we'll have 2 more winning days with SELL, +244, +319. Assuming we close the trade everyday, at the end of the day. That's why we count the 3 pips spread. Then lost on the 3rd day Jan14, with -115pips.

Total is net gain of +724 pips. Not bad for a "no-brainer," just follow the leader trading, huh?

For the days of Jan here are the results: Net gain of +1407 pips

2009.01.02
2009.01.05
2009.01.06 59
2009.01.07 175
2009.01.08 118
2009.01.09
2009.01.12 244
2009.01.13 319
2009.01.14
2009.01.15
2009.01.16 96
2009.01.19
2009.01.20 493
2009.01.21
2009.01.22
2009.01.23 73
2009.01.26
2009.01.27 134
2009.01.28 114
2009.01.29
2009.01.30 178

For the first 7 months of the year, from Jan 2 to Jul 31, net gain is +3132 pips, if my computation is correct. Maybe someone knows how to code an EA, so we can backtest/forward this? I just used excel sheet to compute them manually.

Here's the EA, as provided by Ronald Raygun - http://www.forexfactory.com/showpost...8&postcount=24