- May 24, 2013
- Posted by: Forex Wiki Team
- Category: Forex Trading System
(This is a constantly updated document that will contain additions and modifications to strategy)Hello and welcome,
I have been testing many indicators and programs for years to determine which combinations will work the best and most importantly which combinations are the most reliable especially in a whipsaw market like we are having today.
From all my studies and research I would like to put forth the following program for your evaluation and feedback. I call this program the
Symphonie Trader System
Named for the combination of indicators used to determine tops and bottoms for placing entry orders and exit strategy to maximize profit. These four forces at work in the marketplace are; Trend, Emotion, Sentiment, and Extreme and each one reinforces the other. The Symphonie Trader System works together like the components of a Symphonie. Alone each instrument has a weak sound, but; when put together the complete symphonie makes beautiful music rich in sound and texture
The four Indicators are:
Symphonie Extreme Indicator *
Symphonie Emotion Indicator
Symphonie Sentiment Indicator *
Symphonie Trendline Indicator
(* – these are prone to repaint in older version version 3.0 extreme is NOT prone to repaint)
Basically, you are following the color changes i n the four indicators and ONLY placing orders (SELL or BUY) when all these indicators all line up pointing in one direction.
Placing an order without confirmation of the 4 signals together will not work as well as waiting for all 4 indicators to tell you when to take action.
Remember confliction in the marketplace is common and will cause you to buy when you should be selling and the reverse. This system seeks to calm the market movement by making showing signals as to the true direction of the market. I attach a screen shot with 3 situations to help you better understand.
As you can see we have the 4 indicators loaded into 4 divided windows.
Symphonie Trendline Indicator – A
Symphonie Extreme Indicator – B
Symphonie Emotion Indicator – C
Symphonie Sentiment Indicator – D
Also I have attached a basic Symphonie System Trade Cycle diagram that show how the theory for Symphonie was developed. Again, Symphonie was not designed to get the tops or bottoms; Symphonie looks to catch the main body of the price action movement.
Proper Money Management skills are essential to becoming good and successful currency trader. Money management is by far the most important skill to master if you want to become successful at trading FOREX. Money management is simply a system you incorporate that will effectively preserve capital while you increase your profits. In other words a good system will help keep you from losing all of your money and help you make money.Account Ratio System (ARS) and Order Sizing
It is important to maintain a proper account ratio system (ARS) based on the size of your total account balance. This is to ensure that your account does not get overextended and one suffers significant account losses or even a margin call on account causing one to lose all tradable capital in account. To properly do this one need to establish a ratio system based on the 1000 basis ratio rule.
ARS basically states that for every 1000 in an account will be equal to one trade lot allowance of 0.10 lot. Therefore the maximum total trades for a 1000 account would be 0.10 lot(s). Based on this system you would maintain the following ratios.
ARS Ratio System
1000 equals 0.10 lot(s)
2000 equals 0.20 lot(s)
3000 equals 0.30 lot(s)
4000 equals 0.40 lot(s)
5000 equals 0.50 lot(s)
6000 equals 0.60 lot(s)
7000 equals 0.70 lot(s)
8000 equals 0.80 lot(s)
9000 equals 0.90 lot(s)
10000 equals 1.00 lot(s)
However, this does not mean that one is only allowed to trade one order at a time. This system simply stated that the MAXIUMUM open orders do not exceed the ARS system ratios allowance. So, if one had 5k in account the maximum number of mini lots cannot exceed the 0.50 ARS total. Orders could be organized in any combination desired.
5K equals ARS of 0.50 in total open orders
(5) 0.10 lots….
(3) 0.10 lots and (1) 0.20 lot….
(2)0.20 lots and (1) 0.10 lot….
(1)0.20 lot and (1) 0.30 lot….
ARS keeps a traders maxium risk to 3% or less of ones total markt exposure based on 30 pip stoploss.
Entry Points Strategy
The entry and exit strategy is simple. For placing an order one would wait until you have an extreme spike (opposing colour change) and the other 3 indicators show the same colour in the direction of the extreme value. So, one will execute order at close of all 4 indikators point in same direktion. As an alternate method to better protect ones stress level do not execute a ”markt order” and utilizy the ”pending order” function instead.
Why a pending order? Easy; one can avoid the whipsaw pullbacks that normally happens at the start of a Symphonie Signal as price aktion breaks the edges of a range. Some time the edge holds and price aktion reverses that can result in one have a loss order. Pending orders keep one to the edge breaks and with the trend versus chasing price aktion with a markt order. Let the markt come to you and hand you pips. The downside to a pending order is that one is enter the markt at a high price (buying) or lower price (selling) than using markt order. (Usually 7 pips)Order Account Balance Protection
For this system, I recommend practicing a very conservative order protection loss system. Once an order is executed, immediately assign the order a 50pip stoploss. If the market turns against you, you will only loose a small amount versus if there is no stoploss and it the market move is heavily against you if can be very costly with no stoploss. As an alternate one may use the previous swing high/low for the Stoploss most of the time you will find that this is always less than 50 pips but remember that the smaller/tighter the stoploss the greater the chance of the stoploss being hit by whipsaws.
The key is to protect your orders as much as possible in effort to minimize losses and maximize gains. Once a order is made place a stoploss immediately. Once the pip count exceeds 30pips positive (market moves 30pips in your favor), move the stoploss to 3pips in front of the order to protect from having any loss on the trade. This will ensure you have atleast a 3 pip profit if there is a sudden change in market conditions.Alternate Dynamic Stoploss (more labor intense for all timeframes)
Again, the key is to protect your orders as much as possible in effort to minimize losses and maximize gains. Once a order is made place a stoploss immediately. On open orders 30 pip stoploss is assigned. As the pip count exceeds 10pips positive (market moves 10pips in your favor), move the stoploss to breakeven +1 pips in front of the order to protect from having any loss on the trade. As the pip count exceeds 30pips positive (market moves 30pips in your favor), move the stoploss to breakeven +3 pips in front of the order to protect from having any loss on the trade.This will ensure you have atleast a 3 pip profit if there is a sudden change in market conditions.
Yes, in whipsaw action one may get stopped out more often but in those cases it usually means the market is not ready to move in the direction of your order and you can wait on new pricing action that normally means a second entry order that is at a better price than the first because the market was simply not ready.
** – In higher timeframes 15 min it is recommended a 75 pip Stoploss, in 1 hour and above a minimum 100 pip stoploss is recommended. This is only a guideline. Please use Stoploss at levels that you feel most comfortable. However on 100 pips stoploss you will use 1/2 the ARS number as to maximum lotsize.Exit Strategy
The system exit strategy is simple but here are three possible degrees of exit based on ones level of conservativeness or aggressiveness.
Exit Strategy One. (most conservative)
When theTrend indicator shows an trend value change (i.e. colour change) exit the trade at the close of that candlestick. This strategy makes sure that you get all the profit from a trade in a movement. The downside to this strategy is you are exiting an order when the ends level may not be fully complete and you may miss out on additional profit. If the price action movement is stronger that the cycle extreme shows one would be exiting potentially at the first beginnings of a strong movement and will miss out of the entire movement.
Exit Strategy Two. (Moderate Aggressive)
When the Extreme indicator shows an extreme value change (spike or v3.0 colour change) ) exit one half of the trade at the close of that candlestick. (One caveat…..once you get an extreme spike wait for 3 to 4 bars to see it the Extereme holds or exit on first from version 3.0). If no repaint then exit at close of 4th bar/beginning of 5th. (see post#5177)) This strategy makes sure that you get half of the profit from a trade as the extreme points are reached in a movement. The second half of the order would continue to run until the trendline changes colour. Once the trendline changed colour one would exit at the close of that candlestick. With this strategy half of your order has the potential to gain further if the price action movement is stronger than the extreme point indicated and you could reap the extra movement pips. The downside is that if the extreme is on target and rebounds could hit your 3 pip positive stoploss and loose half your profit.
One caveat…..once you get an extreme value one can wait 3 to 4 bars to see it the Extereme holds. If no repaint then exit at close of 4th bar/beginning of 5th. (see post#5177) or exit at change in extreme value.
Exit Strategy Three. (most aggressive) ‘’the Gambler’’
When all four indicator shows an colour change (spike or v3.0 colour change) one would not exit the order and look to a second indicator order to execute on the new signal. With this strategy you have the potential for further gains if the price action movement is stronger than the extreme point indicated and you could reap all extra movement pips with a full order. The downside is that if the extreme is on target and rebounds the price action could hit your 3 pip positive stoploss and one would lose your potential profit. This exit strategy is also called ”Signal to Signal” exit. See post #2885
SPECIAL EXCEPTION to Exit Strategy (original version only) This exception applies to all Exit Strategies and supersedes them. When a trade produces an Extreme Spikes before reaching 30 pips….,EXIT THE TRADE IMMEDIATELY.
Symphonie 5% growth StrategyNow let us take and apply the Symphonie method to a solid growth plan in effort to build ones account and minimize account losses. By using the ARS method and only risking 3% per trade. We then take and look to grow ones account at a modest
5% for a weekly profit goal. That is right we look to make a 1% (i.e. 10 pips of profit) per day. If you exceed the 10 pips that is great because it will balance out the bad days when you loose…(trust me it will happen because it happens to every one) but overall strategy is to make a total of 50 pips per week of net profit of your total account balance. I think very do-able. Now keeping with the Symphonie method of indikators, ARS, Money Management, and account protection we can draw out a 2 year growth plan. I have attach a spreadsheet that will demonstrate the power of this strategy based on a 1000$ investment over 104 weeks.(i.e. 2 years) It is attached to this post or to post#14318. I think this is a perfekt strategy for those unable to trade full-time.
See 12 months of trading growth plan and what you can achieve Post 15,823.
——–Markt Pattern Recongnition———Being able to recognize markt patterns is also an important part to ones development as a consistant trader. Being able to see klassik markt patterns is important for they help one to beable to properly identify potential markt turning points. Using markt pattern recognition and letting Symphonie indikators tell one the entry point and improve win trade ratios. A good place to begin is always with the basics and one can find the basic markt pattern at the link below.
BabyPips Basic Chart Patterns
——–Symphonie Trader Systems Current Indikator Settings———
Nov 2012 Settings for Symphonie System v3.0.Extreme indikator
Symphonie Matrix v4 Optimizes Settings Matrix
Please see Post 15,842 for settings matrix.
——–Symphonie Trader Tips and Links Section———
#166 – discusses double down process
#278 – discusses ordering process and stoploss modifications
#300 – discusses false signals and money management
#709 – discusses Double Down Momements or Market Re-Entry.
# 1081 – discusses pattern development.
#1454 – discusses bearflag pattern.
#1552 – discusses using higher in timeframe for confirmation in lower timframe trading sindows to avoid false signals
#1936 – discusses repaint and how to make repaint plays
#2330 – discusses Symphonie Extreme Indikator interpretation
#2449 – discusses alternate signal entry system to avoid whipsaws
#2543 – discusses using the Heiken Ashi Indikator as accent to Symphonie Signals for confirmation. Plus an update to this post #4507.
#2686 – discusses basic design of the Symphonie System.
#2884 – discusses ”Signal to Signal” strategy with reference statistics
#4061 – discusses the new enhancement to Symphonie Trader System. Symphonie Matrix v1.6
#4527 – discusses the enhancements and new format of trading Symphonie Trader System.
#4913 and #4983 – discusses how to trade using Symphonie Matrix v1.8 and Symphonie Signaler v1.8
#5177 – discusses modifications to Extreme Spike modification which effects Exit Strategy #1.
#6820 – discusses a trading tip for 1 hour timeframe using daily Extreme Spike to trade with trend.
#7330 – discusses the ‘Three Keytones” to successful trading. (a must read for new traders!)
#8129 – discusses the topic of ranging verus trending with interesting statistics for easy identification.
#8647 and #14377 – discusses the Symphonie 60-5 method.
#8702 – discusses the RealJumper method of trading Symphonie for 1 min and 5 min timeframes.
#8888 – discusses ”Triple Top” forex pattern formation.
#8906 – discusses ”Ascending Wedge” forex pattern formation.
#9774 – summary on Symphonie and Symphonie 60-5 price action flowchart.
#10216 -summary on the Symphonie Matrix v3.0 and upgrades and new trading templates.
(Latest version is 3.0.1)
#12273 – discusses useage of the 60 Simple Moving Average as addon indikator with Symphonie.
#14019 – using trendlines for better Symphonie Signal entry points and followup post #14039.
#14474 – discusses Support and Resistance – How to determine Breakouts
#15,822 – Announce major upgrade and latest version of Symphonie Trader System Matrix v4.4h
#15,832 – discusses multiple orders and using ARS.
#15,842 also #17,260 – Symphonie v4.4h Optimaization Matrix
#16,901 – Graphical explaination of Symphonie Trader System using Matrix v4.4h
——–UPDATE Account Stats Section———
The proof of this system is in the actual trading and these numbers do not lie. Just compare results.
The SYMPHONIE SYSTEM…………… WORKS!
2011 Trial #1 Account information. Beginning balance on Friday, 19 September 2011 –$3000.00
Trial #1 Account Statistics Report Week 0.5 on Post #60 (3 days)
Trial #1 Account Statistics Report Week 1 on Post #145
Trial #1 Account Statistics Report Week 2 on Post #625
Trial #1 Account Statistics Report Week 3 on Post #1156
Trial #1 Account Statistics Report Week 4 on Post #1496 (Special Update post #1569)
Trial #1 Account Statistics Report Week 5 on Post #1750 (I stop account because I almost triple in one week Trial#1 ends)
2011 Trial #2 Account information. Beginning balance on Friday, 28 Oktober 2011 –$3000.00
Trial #2 Account Statistics Report Week 0 on Post #1989
Trial #2 Account Statistics Report Week 1 on Post #2256
Trial #2 Account Statistics Report Week 2 on Post #2550
Trial #2 Account Statistics Report Week 3 on Post #2868
Trial #2 Account Statistics Report Week 4 on Post #3104
Trial #2 Account Statistics Report Week 5 on Post #3400
Trial #2 Account Statistics Report Week 6 on Post #3498
Trial #2 Account Statistics Report Week 7 on Post #3641
Trial #2 Account Statistics Report Week 8 on Post #3724
Trial #2 Account Statistics Report Week 9 on Post #3981
Trial #2 Account Statistics Report Week 10 on Post #4211
Trial #2 Account Statistics Report Week 11 on Post #4562 (Trial#2 ends)
NEW 2012 Thread Trading Acccount –Beginning balance on Tuesday, 7 Feb. 2012 -$3000.00
Trial #3 –Account Statistics Report Week 0 on Post #4912
Trial #3 –Account Statistics Report Week 1 on Post #5143
Trial #3 –Account Statistics Report Week 2 on Post #5769
Trial #3 –Account Statistics Report Week 3 on Post #6705
Trial #3 –Account Statistics Report Week 4 on Post #7295
Trial #3 –Account Statistics Report Week 5 on Post #8285
Trial #3 –Account Statistics Report Week 6 on Post #9100
Trial #3 –Account Statistics Report Week 6 on Post #9557 (Trial#3 ends)
Post #9556 TimeFrame Trading Statistics
——–Symphonie Addon Section———
-This is a good addon to the Symphonie System you may find helpful. The Heiken Ashi Indikator.
(see post #2543)
– Here one can find the second version of Symphonie Extreme Indikator v2 that marks the repaints of the extreme spikes with a dot after to repaint.
(see post #2545)
– Here one can find the new Symphonie Matrix Indikator that streamlines the four elemental
indikators into one easy to read format. There is no change to the system just in format.
(see post #4297)
– Here one can find the new Symphonie Signaler indikator v1.8 made by lhDT. Good Job!
(see post #4476 and version v1.7 is here post #4314 and version v.1.9beta is here post #7102)
– Symphonie Chart Autorefresher to keep your charts up to date with current information.
(see post #3598) Many thanks to chjungen.
-Additionally, I attach the combination Sentiment and Emotion indikator made by rmyers. Thanks rmyers. It is called Symphonie SenitmentEmotion Combi Indikator v1.0.
Due to the volume of request I make this special note to all. PLEASE Do not ask me to provide you signals. Also, regardless how attractive you make it….I will NOT manage anyones account!!!! I have my own accounts to manage and that is plenty for me. So, before you send me a nice note with attractive terms….DON’T. Many Thanks.