TS "Va-Bank" for a simple and understandable dispersal of the deposit
Good day, comrades Forex traders.
I would like to continue the topic raised in the article "Why you should think differently than other traders." Namely, the use of non-standard approaches to trade and finding its “advantage” in price chaos. A brilliant example is the trading strategy “All in", Proposed by our forum member under the nickname goldedition.
And due to the high probability of working out take profit, coupled with a non-standard money management system, the Va-Bank TS can also be used for such a popular “overclocking” of a deposit.
Characteristics of the Va-Bank trading system
Currency pairs: AUDCAD, AUDJPY, AUDUSD, EURGBP, EURJPY, GBPUSD, CHFJPY, NZDCHF, EURAUD, AUDCHF, CADCHF, EURUSD, EURCAD, GBPCHF
Timeframe: H1 + D1 + W1
Trading time: once a week
Recommended DC: Alpari, Roboforex
Principle at the core of the system
That which has grown sharply and greatly should fall. Well, or at least a little adjust. The principle of the spring, honed and complemented.
Instead of just climbing against the current movement, we choose the “weakest link” from a series of pairs (see vehicle characteristics). Namely, the pair that completed the most points in a week. With a probability of 6 to 1, it will roll back to 50-100 points. This can be explained by correction, profit-taking by market makers, removal of stops "late for the train", it doesn’t matter. The main thing is that this principle works and brings us money. Live crispy bills that are so convenient to store under the pillow.
Inputs and outputs
So the algorithm is very simple:
1) At the end of the week, after the market closes, we estimate the distance from the Open point to Close on the weekly candle for all pairs used in the strategy.
2) Choose the pair that has traveled the greatest distance in a week, i.e. with the largest body size of the candle.
3) For this pair, we will enter the market at the opening. And we will enter in the opposite direction of the weekly candle. So, if the weekly candle was bullish, we will sell, if it is bearish - buy.
4) Take profit of 50 points, stop loss - 100-110.
5) After 2 days, if neither take or stop has worked, close the order, regardless of profit or loss.
6) We don’t trade more this week, we spend earned on whiskey and girls.
To do 10-20% per month is good, but without attracting investor funds, it is not very financially enough for life. And so many are looking for how to “disperse” a small deposit. This vehicle is just right for this because of the high% triggering of the take.
So, we calculate the starting depot and the lot in such a way that the stop loss, if it works, takes about 80% of the deposit from us. For example, if we have a deposit of $ 120, then trading with a lot of 0.1, in the event of a stop loss triggering (100 points), we will lose about $ 100. Such a size of a depot and a lot is needed so that we are not taken out by a stop out while we are in a deal.
Further. After two transactions (We receive 100% of profit), we derive profit. After a profit of 300%, we double the deposit. Repeat the loop.
Of course, Va-Bank TS can also be used with “ordinary” risks of 2-5% per transaction.
- Entering the market is not at the opening, but after 5-10 minutes. When the spreads come back to normal.
- To calculate the size of the candle body, it is convenient to use the indicator Candle Body Sizecan be downloaded at the end of this review
- To increase profits, you can enter the market not with market orders, but with pauses, setting them with the expectation that the market will continue its previous movement by an nth number of points before moving in our direction. You shouldn’t be greedy - there are enough deposits at a distance of 10-15 points.
- It’s safest to enter only one pair per week
- If you still get tired, after working out the take profit and provided that one or two of the other pairs (with a large weekly candle) are “in drawdown” in relation to the direction of the proposed transaction by at least 50 points, then you can re-enter to the market. But in this case, the number of failed transactions will increase.
- For extreme people. For knights without fear and reproach, warriors of light, kindness and freedom: You can use auto-martingale with the help of adviser Ilan. Also find a pair that we will trade this week, determine the direction of the transaction, put Ilan only on purchases or only on sales with a lot of about 0.01 for every $ 100 of a deposit, Take Profit = 50 points, a step to open additional. orders of 50 points, a multiplier of 2 or 3 (no longer worth it). Two days later, turn off the adviser and close the remaining orders.
Forex strategy “Va-Bank” is undoubtedly of interest. Firstly, the non-standard approach, and secondly, the peculiarities of money management, which, combined with the high probability of achieving take profit, makes the TS a powerful weapon for the very dispersal of the deposit, to which many novice traders aspire.