The Symbiosis system
I will attempt to explain how the system behind WNS works without giving away to much, not really sure about where that is but lets have a go.
As a preface i did trade the darwin using another system during the first two months, the rest of the time i’ve been working at getting it back into profit. The other reason it took so much time is that i did not follow the trading rules of the system, i simply thought that i know better then what i’ve designed myself for all these years.
Yes i know it’s a bit silly.
The system trades one currency pair per account and i’ve run it on multiple mt4 accounts at the same time since 2013. Usually i’ll have about 4-7 mt4 program running simultaneously trading the strategy and even though it has evolved somewhat it still does keep that very same basic idea, which is that price will come back not all the way back but if i can see the good prices then that is enough. A rubber band of sorts.
General idea of the strategy
The strategy attempts to make a soft stop out of a stop loss by dividing a position onto several smaller ones and/or opening a reverse position as profits are generated such as to lock the profits into place. Later on after a set time designated as a “cycle” the trading system will either close out the profits or hedge them into blanket risk.
I do this manually with the assistance of an EA that has bit over 10 different functions. Yes, one of them is to keep track of what i do
I’ll give an example of this here.
Let’s say i am long GBP/USD with 0.1 lot.
To balance that out i may have 2-5 sell stops below the entry of the long position such as to create equilibrium in overall market exposure. If the positions are 5 in number then they are 0.02 in size since 0.02 x 5 = 0.1
Later on if i am in profit with with 100 pips i could decide that it is a good idea to keep them, there i’d place a stop loss at 10 or 20 or some amount of pips above the entry. Here i lock the position in profit, yes i know about gaps in price but normally that works and then i can collect those profits later on or maybe trail them for more.
A very simple trade signal could be to follow an RSI where if the indicator closes over 70 price is to high and if price closes below 20 price is to low. Each of those could be an idea to go long or short. Do keep in mind though that this example is severely oversimplified.
Normally i trade the system using entry signals from price interpretation using price action order flow / tape reading.
So by this point you may understand that the reason for the recent big win is that profits where realized and one such cycle was completed, this is correct. You may ask how long such a cycle is, the answer to that isn’t really able to be defined in time and hours but rather it is about corresponding to the price and market flow, think of it as a wave in price where you buy something at a cheep price it becomes expensive and later it is cheep again and that’s a cycle.
I do trade the system on an hourly basis and if i recall correctly the average hold time is about 2-3 days normally. There should be about 2-3 trades a day also, though that may change but it is not something set in stone.
As with many things in the system it is designed to be dynamic and not use any static values = i won’t close a position if there are X amount of pips but rather i’d adjust the risk control for that position once the market shows me that the profits look as if they may not rise anymore.
The strategy aims to take advantage of “good” prices in the market and attempts to lock them in and trail the profits using several mechanisms. In the end i am the one deciding where the price should be and i’ll buy and sell (short and long) towards taking advantage of that, as i said.
If the strategy can ride long trends then it will try to do so. I call it mean reversal hedging, not sure if that’s really correct but hey i did name the strategy…
That’s all for now i guess, post questions if you have them. Or you may find some answers here http://alexandertatsumaki.weebly.com/ but i haven’t really updated the website in a long time now.