WL DayTrading system

Wim Lievens

Wim Lievens

This package includes three complete strategies and a strategy selector.


DESCRIPTION

My trading philosophy is based on the following principle: “The key is to adapt to different market conditions”. In order to adapt to different market conditions the WL Day Trading System package contains three complete strategies. In addition the system includes the StrategySelector which shows the trader which strategy he needs to use depending on market conditions.

1. THE T-CHANNEL SCALPING STRATEGY

Description-link

The T-Channel Scalping strategy exploits trend correction & rebound opportunities. It is traded at moments when the market is likely to trend.

When to open a position ?

Step 1: check the StrategySelector.
The zero line is not bold and the size of the StrategySelector wave is not twice the size of the preceding wave.

Step 2: check the market trend.
The trend determines if the trader buys or sells short. The trend is determined by the crossing of the MA50 (black line) and the EMA20 (orange line). If the trend is negative (bearish) the chart background is red and, the trader will short sell. If the trend is positive (bullish) the chart background is green and, the trader will buy.

Step 3: wait for a correction.
If the market trend is positive, a correction is said to occur when a candle closes below the EMA20 line. If the market trend is negative, a correction is said to occur when a candle closes above the EMA20 line.

Step 4: wait for a rebound.
If the market trend is positive, a rebound is said to occur when a candle closes above the blue T-Channel. If the market trend is negative, a correction is said to occur when a candle closes below the blue T-Channel. This rebound candle is also called the confirmation candle.

Step 5: place your order.
If the trend is positive, place a buy stop order 1 tick above the high of the confirmation candle. If the trend is negative, place a short sell stop order 1 tick below the low of the confirmation candle.

When to close a position?

See trade management below.


2. THE HEIKIN ASHI REVERSALS STRATEGY

When to open a position?

Step 1: check the StrategySelector.

Step 2: check the market trend.
The trend determines if the traders buys or sells short. The trend is determined by the crossing of the MA50 (black line) and the EMA20 (orange line). If the trend is negative (bearish) the chart background is red and, the trader will short sell. If the trend is positive (bullish) the chart background is green and, the trader will buy.

Step 3: wait for a correction.
If the market trend is positive, a correction is said to occur when a candle closes below the blue T-channel. If the market trend is negative, a correction is said to occur when a candle closes above the blue T-channel.

Step 4: place your order.
If the market trend is positive, place a buy stop order on the high of the candle which closed below the T-channel. If the order is not triggered and the market continues to go down, lower your buy stop order to the high of every last candle until you are triggered.

If the market trend is negative, place a short sell stop order on the low of the candle which closed above the T-channel. If the order is not triggered and the market continues to go up, increase your sell short stop order to the low of always the last candle. This is called a reversal bar entry.
The zero line should be bold.

When to close a postion?

See trade management below.


3. THE BOXTRADE STRATEGY

The Boxtrade strategy is used when the market has stalled or is losing momentum. In other words, when volatility is low. When volatility has been low for some time a strong movement can occur. The risk/reward ratio on such trades can be very good. The NanoTrader platform automatically draws low volatility boxes for the BoxTrade strategy.

When to open a position?

Step 1: check the StrategySelector.

Step 2: check the market trend.
The trend determines if the traders buys or sells short. The trend is determined by the crossing of the MA50 (black line) and the EMA20 (orange line). If the trend is negative (bearish) the chart background is red and, the trader will short sell. If the trend is positive (bullish) the chart background is green and, the trader will buy.

Step 3: only after 6 completed candles, place your order.
If the market trend is positive, place a buy stop order 2 to 3 ticks above the top of the box. If the market trend is negative, place a short sell stop order 2 to 3 ticks below the bottom of the box.

Tip: the “best” boxes are those boxes which are on or near the MA50 – EMA20 lines. Consider rejecting trades based on boxes far removed from the MA50 – EMA20 lines.

When to close a position?

See trade management below.

Tip: although the system combines three strategies and the speed at which the charts evolve can be high, traders need to keep in mind that there are about 3 to 8 good signals per instrument per day. It is important to be patient, apply the right strategy (sometimes there can be overlaps or quick successions) and wait until things line up perfectly. Don’t get tempted by signals before they are complete. Enter correctly.

TRADE MANAGEMENT – WHEN TO CLOSE A POSITION?

The WL Day Trading System is coded for MT4, MT5, NinjaTrader and NanoTrader. It allows automated trade management based on multiple targets and multiple stops. The below description is based on a position of 4 lots. The trader can open a position of a different size. Whether you buy 2 lots, 3 lots, 4 lots ... the NanoTrader Full will automatically manage all position sizes based on the most prudent solution.

All targets and stops are programmed on the basis of a volatility measure called the Average True Range (ATR). The higher the volatility the further the targets and stops. The lower the volatility the closer the targets and stops. Remember

  • When the first target has been reached, the trader moves his (closest) stop to the level of the entry price. On this part of the position he can no longer lose.
  • When the second target has been reached, the trader also moves his second stop to the entry price. The trader can at worst break-even but can no longer lose.
  • When the third target has been reached, the trader will move the remaining stops when new swing lows (in case of a long position) or new swing highs (in case of a short sell position) are reached.
  • The fourth target can never be reached ... the trader keeps on moving it away from the market whilst at the same time moving his stop. It is the stop which will close the position.

The WL Day Trading System package consists of:

  • 1 StrategySelector tool.
  • 3 Day trading strategies (BoxTrade, T-Channel Scalping and Heikin Ashi Reversals).
  • 1 Hour online coaching with Wim Lievens.

For more information do not hesitate to contact me.