ANDREW TRADING SYSTEM

ANDREW TRADING SYSTEM

Currency Pair:
Any pair, with a preference for cross-pairs that exhibit strong trends.

Time Frame:
Any, typically a 4-hour chart.

Indicators:
Supertrend, Nonlagdot (Value: 20)

Entry Rules

Buy Entry:

  • Indicator Signals:
    • Nonlagdot changes from red to blue.
    • Nonlagdot dots should be above the Supertrend line.
    • Supertrend line should be green.
  • Order Execution:
    • Open a position with a pending order.
    • Place the order at the upper point of the market extremum formed after the first downward rebound (closing price lower than the previous one).
    • Wait for the price to exceed this extremum point before buying.
    • If the price does not exceed the extremum point, wait and shift the order to the new extremum.
    • Cancel the order if Nonlagdot or Supertrend turns red.

Sell Entry:

  • Indicator Signals:
    • Nonlagdot changes from blue to red.
    • Nonlagdot dots should be below the Supertrend line.
    • Supertrend line should be red.
  • Order Execution:
    • Open a position with a pending order.
    • Place the order at the lower point of the market extremum formed after the first upward rebound (closing price higher than the previous one).
    • Wait for the price to exceed this extremum point before selling.
    • If the price does not exceed the extremum point, wait and shift the order to the new extremum.
    • Cancel the order if Nonlagdot or Supertrend turns blue.

Important Note:
Avoid market entries without placing pending orders. Pending orders should account for the spread and include an additional 3 pips.

Exit Rules

Exit the Position When:

  • The price touches the Supertrend line.
  • The Supertrend line changes color.
  • The price touches the first line of the Fibonacci fan.

Fibonacci Fan Construction:
Draw from the market extremum at the beginning of the movement to the opposite extreme point. For buys: from the bottom to the top of the movement. For sells: from the top to the bottom of the movement. Exit at the line of the Fibonacci fan closest to the price, moving the exit order along this line.

Stop-Loss Settings

Stop-Loss Placement:

  • On the Supertrend line.
  • Below the nearest price swing.
  • Under (or over) the closest market extremum that exceeds the Supertrend line in the opposite direction.

Additional Note:
Account for the spread and add 3 pips to the stop-loss order.

Money Management

Recommended Strategies:

  • Limit risk to no more than 10% of capital per trade.
  • Consider using a progressive system (e.g., Fibonacci or semi-martingale).
  • Avoid the Martingale strategy due to high risk after consecutive losses.

Adding Positions:
Only add to profitable positions after a regular color change of Nonlagdot in the direction of the current trend.

This trading strategy combines key indicators and sound money management principles to optimize your trading performance. Follow these rules to identify and capitalize on market trends while effectively managing risk.

Download