Basics Of Trend Trading Strategies

Profit targe

Updates on the “INSANE EA”. – Demo hit 19.77% Profit since Friday! Also started my Live Acc.

Updates for you all. Demo acc has just hit 19.77% – this is unbelievable! I’m still marvelling at the programming genius for this.

I have had my time trying to program and curve fit open source Martingale and Grid EA codes, but I’ve never been able to create something as consistent as this! What’s most amazing to me is that the highest DD I ever seen – during last Friday’s NFP was just about -$4,000, which was 11.1% of the starting balance of US$36,000. Ordinarily, the Max floating DD I’ve seen is around $500-1200, or 1.4%-3.3%.

I’ve started a live account.

Risk Management
The programmer recommends that profit should be transferred into another account on a daily or weekly basis, leaving behind just the minimum for the settings files used, as while returns are high, there is a rare risk of failure during extraordinary financial events – for example the 2008 financial crash. With that spare profit fund, you can later restart your account. Personally on the maker’s own $93,000 account, they have already withdrawn $70,000 worth of profit since November last year.

Many skeptics say that EAs always work well on DEMO but turn into disaster when put on LIVE. Hence, I decided to put some money to the test.

By the way, I did NOT actually deposit $36,000 in my test. I’m using FXOpen Micro Accounts- and this means that every pip is worth just 1 cent, instead of 10 cents in a regular platform I use, i.e. FXPrimus, etc. However, as FXOpen has a strange calculation to offset where their usual 0.1 lot = $1 per pip, they’ve added some zeros to the actual balance. I.e. my $360 test deposit was expressed as $36,000. Nonetheless, everything is relative, and keeping a watch on how this works out, I’ll be putting in a larger sum. If you want to get a FXOpen Micro account, you can do so HERE.


After 13.5 hours… this INSANE EA turned in 6.96% Profit over 136 Trades and minimal drawdown!

This just gets me so excited. One of my main goals in Forex blogging, is being able to get more ordinary people who work a day job get started in making an additional stream of money from Forex trading.

However, depending on which part of the world, I do know that some of my readers here have a really hard time earning money working on a minimum wage. This EA which I’ve been testing, could very well be that “POOR MAN’S RACEHORSE”.

The programmers have done the genius work of being able to suppress drawdowns to a minimum despite a very high frequency of trading.

Just check out the sheer number of trades this did…. Here’s just ONE of the many charts!

Sure, the big boys always win. Donald Trump bounced back from bankruptcy to being 50% richer than he ever was because he had a good standing to win over lenders. But how about the little-est guy out there?

Big investors can also invest similar amounts as my demo account and yield an average of $1,500 – 3,000 a day!

Now here’s an EA that takes just $500 initial investment. Returns will be scaled down for sure, but the percentages are the same. The developer said that with both standard and advanced modes enabled, monthly profits via this EA alone can be within the 60-70% range.

Want to view my MyFXBook Statement? It’s here:

More info on this in the next couple of days. Keep your comments and questions coming!


BlackDog Forex: H1 Chart tells to hang on for further lows ahead

Back to basics. It is large daily movements like these that make trend trading systems work again – they haven’t worked well all December. Just didn’t turn in the opportunities!

Here is one of the earlier systems I started out with, the BlackDog Forex Trading System.

The recent black downward arrow signals that the current market is in a downtrend. The pair of MAs which turn dark green (up) or dark red (down) form a dynamic support and resistance for price action. An even shorter period MA, the line that turns light blue (up) and light red (down) forms an even earlier S/R which price will often bounce off. Price is currently beneath the pair of slower MAs and even the faster one.

The area enclosed by the upper slower MA and the faster one form a No Trade Zone (NTZ) – as labelled in the above diagram. Short entries are taken when a signal bar forms, with a red (short) arrow over a bar. The trade is then entered when price goes 3 pips below the low of the signal bar.

Alternate entry for advanced traders is available. This is called the “HiLo Entry”, which is taught and discussed more on their forum (available to all who purchase the system), where the short trade is entered 3 pips below the low of the bullish bar in a downtrend, when still below all the MA lines.  I have marked out the trade entry line in Green, and a 20-pip stop loss in Red line.

Profit target will be 2 x of risk, so 40 pips in this case, to close out at 1.3035. However, trade management will be used.

Trade management (manual or using EA):

  • when the trade is 5 pips positive, shift the stop loss to -10.
  • when the trade is 20 pips positive, shift the stop loss to BE+9, and add trailing stop of 12 pips.

Julian’s Trading Recommendations:

The BlackDog Forex Trading System is recommended for those new to trading but would like to have a good foundation. It is also good for those wanting to spend time doing technical-based day-trading. It is best used on timeframes M15, H1, H4 – at least I think that’s best. This is not a good system for sideway markets, but then again, it would not produce any valid signals, so you won’t lose money either. Works on all brokers with MT4 platform.



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