I was recently reminded about a trading system that I learned from Colin and Walter awhile back. A trader that I talked to at the conference has been trading it quite well, so I wanted to get a refresher on how it worked.
Fortunately, it's still available on Walter's YouTube channel, so I thought that I would share it.
Remember, as with any trading system, you need to figure out if this trading system matches:
Then if it does, you have to backtest and forward test it before you ever consider trading it live. If you are still looking for a trading system that works for you, this is an idea that you can test out.
Colin mentions his trading results with this system, at the beginning of video. But remember that past performance does not guarantee future results.
Also, The Forex Room is no longer around, but it doesn't mean that the system itself is any less effective. Even if you don't have the exact indicators mentioned in the video, learn the general concepts, try out some similar indicators and do a few tests.
Before we get to the video, remember to never, ever take anyone's word that a system works (including mine).
Test it for yourself.
To get access to more trading systems, be sure to join Walter's private forum here.
The Surge Trading System Explained
This system is a breakout strategy. If this is your preferred type of chart pattern then this might be something that you want to test out. Here is how you would setup your charts.
Indicators Used
- 62 Exponential Moving Average
- 5, 8, 13 Simple Moving Averages, shifted forward by 2, 5, 13
- TFR AO
- Auto Pivot
- TFR-L
Entry Signal
Bracket the market when the moving averages pinch together. A buy stop would be set above the consolidation area and a sell stop below. It's not an order-cancels-order entry, so if you get stopped out on one trade, you would simply wait for the other order to trigger and if it wins, it should make up for the losing trade.
Watch the videos to get the details on how to enter the orders and when to cancel them.
Once you are in the trade, you would add-on only when it meets the right criteria.
Best Time to Trade
According to the video, the best setups happen at the beginning of the London session. The next best time to trade it is during the overlap between the close of London and the open of the New York session.
To learn more trading systems from Walter and other full-time traders, join his private forum.
Conclusion
So that is how to get started with this system. Be sure to watch the complete video to learn the nuances of how this works. I hope that it has given you some ideas.
Even if you don't choose to use this exact system, it is always useful to see what other traders are trading and how you might be able to take some of these tips to make a few improvements to your current trading system.
If it is something that appeals so you, test it out with Forex Tester and a demo account and see how it goes! Remember, never ever test a trading system that you just learned, with real money.
To map out this trading system for testing, you can use this worksheet.
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hi,
This might sound stupid, but what the heck is TFR-L standing for – and same letters for TFR AO?
Google doesn’t show up.
tks for your attention,
Adrian
Hi Adrian,
I think AO is the Awesome Oscillator by Bill Williams. Not too sure what the L indicator is. I know that Colin based this system on Bill’s method and created his own indicators, so you might not be able to find the exact indicators. But if you learn Bill’s Chaos method, you can figure it out.
Cheers,
Hugh