ZORRO RULES by FXIgor ©
UPDATED Version of 11 january 2008
IT IS A GOOD THING THAT THE RULES ARE DYNAMIC AND ARE SLIGHTLY ADAPTED TO THE MARKET. THE MAIN PRINCIPLES REMAIN ALWAYS THE SAME.
Before speaking about the rules:
To join the zorro trading group you go to paltalk-->
go the the "Health" section --> Beauty--> only 2 rooms in
that section. One is zorro trading group.
You right click on that room and you choose to join as an admin: the code
for the admin is xxxxxx
If you enter in that room an "@" sign will apear in front of your
name. Be shure you have this sign in front of your name or other members
will bounce you out.
Also a red dot will be in front of your name.
You right click on your name and you choose for "remove red dot".
The zorro templates are to used on the WHC MT4 platform only. Please download
it here:
http://www.metaquotes.net/files/whc/whc4setup.exe
This is the webinar video so you can learn about
the system.
http://www.mediafire.com/?sharekey=13c7b5d2306231e112e7fe3f20cedf49dd40a0a6f8f00181
Password: xxxxxx
In order to make your MT4 platform run the template
very easily you can limit the number of bars in the chart like this:
Go to (on top of your screen in MT4) Tools >>> Options >>>
Charts and than put "Max bars in chart" to 1500 (for example)
Than go to Tools >>> Options >>> Events and UNCHECK the square beside "Enable". This cancels the standard sounds of MT4
The zip file that you receive by Email from Igor:
Go to your "Windows Explorer" or open on your desctop "My
Computer" >>> C >>> program files >>> WHC
Trader 4 >>> Experts >>> indicators and copy there the
mq4 files and the ex4 files from the zip.
Go to WHC Trader 4 >>> sounds and copy the wav files there
Go to WHC Trader 4 >>> Templates and copy the tpl files there.
Attention there is also a templates folder inside the experts folder, dont
put it there. But in the Template folder that is direct in the WHC Trader
4 root folder.
Put your chart at 15 minutes TF. The zorro system is traded on 15 min charts.
Trades signals are only valid between
8.00 and 18.00 CET
All open trades are closed at 18.00 CET (CET = GMT+1)
All trades are opened with 2 lots or 2 minilots etc
We trade only EURJPY and GBPJPY.
We enter only in 1 trade at a time for 1 currency pair. When we are not in
a trade for a certain currency pair, we enter on the first arrow/popup that
apears, regardless if it is a blue or light blue arrow. So if we are already
in a trade and an other arrow/popup comes in the same direction, it is void.
(for arrows in the opposite direction of the initial trade, see below)
Enter the trade AT ONCE with a market order. As soon as the arrow/pop up appears.
At the same time as the arrow/popup also a nice women voice sais "enter
long" or "enter short".
1 restriction to enter a trade: Remaning Range. (See below)
In your upper left corner of the chart
you see "AVG DAILY RANGE" and "TODAYS RANGE".
For an entry signal to be valid the ADR-TR must be >33% of the ADR. So
we need 33% or more left of the daily range to take a next trade in the same
direction as the trend has already traveled that day. Lets say The ADR is
90 and todays range =61 than there is no longer 33% left of the range for
that day and we dont take a trade in the same direction of the trend of that
day. However if an arrow appears in the other direction, that should bring
us back in to the range, than that trade is token.
Templates
We have 2 templates for chart setup "no_trade_pc6 template" abriviated
as: "NT6 tpl" and "trade_pc9 template" abriviated as
"T9 tpl".
If we have no open position we put the NT6 tpl on the chart.This template
is easy recognizable on the dark red vertical stripes in the chart background.
The T9 tpl is recognizable on the dark green vertical stripes in the chart
background.
Price Channels
In the NT6 tpl we have the "price channel 6" and the "price
channel 9" they are produced by the "Custom Indicator - PriceChannel_Stop_v3".
In the T9 tpl we have only the "price channel 9". The
"Custom Indicator - PriceChannel_Stop_v3" shows only 1 side of
the channel. If you are not sure what price channel you are looking at double
click on it and the indicator popup will tell you as a first rule in the
inputs tab: the ChannelPeriod.
The problem is now that this price channel, once we are in a trade, must
appear on the, for us, relevant side of the candle. That is the SL side
and of course not the side of the candle where we want the price to move
to.
When this channel is breached you get a popup and a bell sound that warns
you to exit the trade. Only after the close of the candle is OUTSIDE the
channel a popup will appear and we will exit the trade. Be carefull because
all exits will generate a popup, also the ones you don't need. In the popup
box that appears you can only read that it is for a channel exit, but it
does not tells you what channel, a 6 or a 9. The only way to see this is
to look at the chart and see what channel the last candle has breached.
Exact rules for exiting on a channel stop are in the Rules chapter.
We try to exit the trades always in 2 steps.
1) First lot: Fixed profit target. This PT appears as a fat blue or light blue line on your screen. (depending on what channel it initiates)
2) Second lot: Price channel exit as described below.
Beside the price channel stop we use also
a static stop.
This stop value is indicated in the right upper or under corners of the chart.
You look in the corner in which the text is written in the same collor as
the arrow that signals the trade.
(Comment of Pipperoni: The blue arrows have a slate blue text)
Break Even exit: Once the first TP is reached, we place the static stop, for
the second lot, at BE. This is: entry price -/+ the profit made on the first
lot. In this way we give the second lot more swing and the first lot pays
the possible lose of the second lot, in case trade goes against us.
If this SL value is to far away ( we can consider to far as more than around 40 pips) than we use the previous high/low as static stop value. We can confirm this SL value in that case via the chat room (in platalk)
RULLES
Rule1
If I do not have a trade running, I look always to a NT6 tpl for new trades
to be entered.
Rule 2
If I have a trade running that has hit a TP (with the first lot) I can only
look to a T9 tpl for the rest of that trade (for the second lot).
Rule3
If entry on NT6 tpl, If price channel 6 and price channel 9 are both in
place at the moment that you need to enter go imediatly to the T9 tpl. And
now you monitor your trade directly from that T9 tpl. So don't need to go
back to NT6 tpl as long as that trade is not closed. (comment: The take
profit target of the NT6 and T9 templates are the same as soon as booth
price channels are in place in the NT6 tpl)
Comment of Pipperoni: You always enter a trade on a price channel six and exit always on a price channel 9. The only exception to this rule is when you are already in a trade and a bleu arrow apears in oposite direction, than you can reverse the trade directly in your T9 tpl.
Rule 4A
If I enter in a trade on the NT6 tpl and only my price channel 6 is in place,
I will stay in the NT tpl till my profit target is hit.
Rule 4B
After I hit the profit target (in case of situation of Rule4A), I look to
the value of my break even line and place a stoploss order with the value
of my break even line. Only than I move over to the T9 tpl and I stay in
this tpl and only look to this tpl as long as I am in this trade.
Adendum 1
If I have an entry on the NT6 tpl where only price channel 6 is in place
and price turns against me I will take my exit based on the price channel
6.
Adendum 2
If I have an entry on the NT6 tpl based on only a price channel 6 and price
channel 9 comes later in place I will only take my exit based on the price
channel 9. (comment of P: But I will not switch template to the T9 tpl because
of the TP line that we have based on the 6 channel)
So if we are in a trade in NT6 tpl and we dont hit the TP target (with the first lot) and price turns against us than we will exit the trade based on price channel 9 and in case this never came in to place we exit on price channel 6.
Once a price channel 9 is in place we can only exit with that channel. ( but this is only an other way to formulate Adendum 2)
Remarks on the new Templates:
If we are not in a trade we enter on all arrows (light blue and blue)
If we are in a trade and a light blue arrow appears in oposite direction,
this entry is ignored (not token)
If a blue arrow appears in the oposite direction of the trade we are in,
than we will exit that trade and open immediatly a trade in the direction
of that arrow. (we reverse the trade) No matter if that 1st initial trade
was on a blue or light blue arrow and no matter what the state of this first
trade is. (TP hit or not etc)
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