Piotr MleczkoPiotr Mleczko is a trader for 12 years. He spent the first 6 years with the futures. He created a system which gives an 25% increment per year with little risk. Since 2006 he has been in the Forex market, where he play on trend lines and clearance. He spend also a lot of time on the Elliot Wave Principle. He was showing his trading for 3 years in the thread opened in forex-nawigator.biz forum. Since June 2012 he plays using system described below, which brought more than 60% of the profits with just 1% of risk and maximum capital slid by 6%. Currently, trading is his only profession.
System description
We start from the weekly chart. We consider two adjacent candlesticks as a setup. Candlestick size does not matter. It is only important, that one was a continuation of the previous. Closing the second candlestick have to above/below the closure of previous candle.
When we have setup crated in that way we mark lines, which will be the areas, where we entry positions (with ~20 pips buffer). If the first candlestick has got a small body and long shadow, we put the lines on the shadow and the body of the first candle.
If the body and the shadow of the first one is small, then we put lines on its body and in the middle of second candlestick
If two candlesticks permeate each other – they have a similar body size – we put the lines only on the first’s body.
If the second candlestick has a long body, then we put three lines. One on the body of the first, second in the shadow of the first (of course if it exists) and the third one in the middle of the second candle.
For every such designated line, we add 20 pips of buffer. We formed this way an area, where we will look for inputs. A system of two candlestick is valid until the denial. Negation arises when a weekly candle closes itself in downward setup overt its maximum and in upward setup under minimum.
After determining the weekly areas, we move on H4 chart. In residual areas or in their neighborhood we look for typical setups know from ZL, where the body of second candlestick is at least two times bigger than previous one. In this setups, we put lines just the same as in weekly setups.
H4 setup must have min 30 pips. This value is calculated as shown on the screenshot.
Position on H4 is valid for over a month, unless it will be negated earlier. Negation is exactly the same as in weekly setups.
We already have the weekly designated area. We have ZL setup on H4. The input takes place after m30 after the test of weekly area and piercing the ZL line on H4 with candlestick on demand or supply side. We always play for testing and puncturing the H4 line which is the closest to the weekly area. The rule is really simple – everything which is the newest and the closest comes first and takes precedence.
Stop is rigid and equals 25 pips. On BE we set at 50 pips. We have tree potential output moments. The first one is the constant TP of 250 pips. The second one is access to the next weekly chart area, of course, contrary to our position. If the graph stops in this area and we have about 175 pips of profit then we close. The third moment can change and is adjustable. If we have around 175 pips in profit and we are in the fifth wave and we see clear divergence on it, once again we close. Here you have the link to the log that I write form three months, playing the system described above. All screenshots posted there have activated history and all the inputs are visible.https://forum.klubforex.edu.pl
I got a few questions about the outputs based on the waves. I decided to explain them. In the vicinity of the minimum TP on m30 chart I mark waves. I am trying to focus not on the exact designation but on marking the third wave. It is piece of cake and everyone can do it.
Third waves can be seen right away. Their power is noticeable at first glance. If someone has a problem with that, then try just look at the AO or EO oscillator – the largest of its swing is the third wave. Then, I am looking for the next wave divergence. I marked it on the first chart.
If I find one, I am going on a lower TF level and I mark the waves on a hypothetical fifth. If I see five sub waves I get out of the market (picture two).
If there will be more questions about the system I would be really happy to answer to all of them.
