This is a simple strategy i would like to share. Its a trend following strategy based on Bill Williams profitunity system. BW developped the chaos trading approach of trading.
This how i trade it:
- Awesome oscillator on MT4 (i used a different version developped by a friend)
- Alligator on MT4
- Fractals box (indicator made in using the fractals also on MT4)
TF: It could be any from M1 to D1, but we look at the TH 4-5X time higher for direction for example, i like to trade H1 i checking H4 for direction (i look also at D1 for overall picture)
We take the break out of a fractal box when alligator is sleeping or starting to opening.
SL is at the other side of the fractal box (box must be tight, i e inf to 40 pips por H1) in order to spot 1-2 (Wave 1 followed by Wave 2 - ref: Elliott Waves)
AO must be close to the Zero Line.
Entry must be as 4X higher TM has an alligator open (trendy)
If price goes vs us, exit just above the candle who triggered the order or if the setup looks good, other side of the fractal box
If price goes with us, we use the lines of the alligator (green if there is divergence between price and AO, red if there is not) but the best exit is when price breaks the other side of the fractal box)
Of course, exit depends of how the 4X time chart looks like.
I use sometime fibonacci numbers
I tend to bring SL to entry level when price moved +1% and i usually protect 30-45% of my profit when price made>+1% profit.
To be successful, you need to be familiar with Elliott waves analysis but the AO does help you for that
Here is an example on gold last week 29-31 October H1
Its downtrend on the daily chart and we expect wave 5, on H4 the direction is south also. We take the break of a lovely double lower H1-H4 level of the fractal box. We have no exit signal but we exit always before the end of the week, for +550 pips
gold 29 OCT.png
Video of the trades
Thanks for your attention and happy trading