风险业务系统 (Risky Business System)

I've been trading this system successfully for a while and wanted to share.

The principles aren't really new, but the settings are effective.

Before i explain the chart setup, entries and exits, I want to mention that this system uses stop & reverse semi-martingale strategy so will not be to everyones taste and comes with a serious health warning. "One day it will blow your account!" There. I've said it. So hopefully it shouldn't need any further mention.

Pairs: Anything with reasonable volatility.

Time frame: 1 hour works for me. Smaller time frames are equally effective but exponentially increase the number of trades taken.

Chart setup: Envelope of 100ma and 200ma with 0.1% deviation.

First entry: When a candle reaches the 100ma and closes above the highest envelope 'buy'; when it closes below the lowest envelope 'sell'.

Stop & reverse: When a candle closes on the opposite side of the highest/lowest envelope on the chart.

Lot sequence: Typically i am increasing the lot size by 1.5 in each trade so my progression is 1k, 2k, 3k, 5k, 8k, 12k, 18k, 27k, 40k, 55k, 100k...

Exit: If it is the first trade of the sequence, i target the immediate high/low for exit. If it is not the first trade of the sequence then i target a monetary value beyond break even. Sometime if there seems to be good momentum and the trade profit is past breakeven i use the a trailing stop.

Some notes: Be wary of the gap between the opening price and the furthest envelope. Its an indication of risk, but it can also represent the strength of trend. Patience is required. Some trades can take weeks to come in to profit.

Below is image of Usd/Cad showing a chop zone and a trend.