Maximum Favourable Excursion is subjective it always makes me laugh and cringe to hear a software vendor trapping new traders by spouting on about how good a trader are you? Can you get the MFE of the trend following system - the answer is no - you cannot - you take what it gives you - you generally let profits run until a reversal occurs, when is that? Who knows so the answer is you can never obntain the MFE with trend system ever... only by fluke or by changing the system rules with stops and targets... which effects the profit oppurtunity greatly.

With a HILO Range Trading system you can achieve MFE - I do but i have to say it is not easy folks :-) psychology plays a role in that...

MFE and Risk Reward:
With the MT3 HILO this system you can plan to trade setups found on weekly chart and aim for a 1 to 30 risk reward swing trading - How ? Just look and see for yourself. Its easy if you try, all you have to do is learn to draw trend lines on your charts...

For example on the weekly if you are at 9 month high and above the weekly ema2 high or ema5 high and the ema5 close is 300pips away that is your range 300pips… 1 to 30 Yes you can place a target there and get 300pips in one trade - more if you scale and trail.

RISK REWARD
I suggest an intrday minumim of 1 to 3 of stop size
Only go for trades that are 1 to 3 to 1 to 15 - Based on range –

Trade pictured: 147 MFE on tehcnical target...
If you exited on the basis of the Dynamic Fibonacci level of 38.2% of the previous day + MT Woodies Pivots S1 then I would say you were going to be a very good trader if you use technical targets and not static. The trade is still on but if you exited at that point then the MFE was Advanced Trader 15876 to 1.5729 which is FXMAX Max to S1 147PIPS... taken in your sleep....

MT3 HI LO Ranger Trader
The success of the system is on the basis that a trade can be placed whereby the stop is small and within the max risk per lot money management and is above a high or low – at a convergence of price and time where resistance and support is a high probability trade opportunity, the entry should be as near to the high or low setup candle as possible so that maximum profit opportunity is allowed – in addition allowing the stop to be moved in at a point where 2 units can be traded without adversely effecting the equity curve, meaning that our entry will allow us to take off 1 target and move to break even and let the second unit of lots ride for a reverse signal, stop or target. Due to the system requirements that the entry is at the extremities’ the system requires the filtering out of trades that do not fit into this require setup and entry pattern. It means waiting for a number of factors to align before the trade can be taken – revolving around the setup price, trade entry and stop size.

Looking for a more risk free late confirmation is exactly what is not going to work with this system. Entry needs to be early and swift. To obtain this it is necessary to make use of a number of different trading time frames – it is also necessary not to rely solely on the hi or lo – the hi or lo must coincide with a level / horizontal, dynamic, projected levels

Inherent failings of system
You will not always get a trade setup in your session time
It is not 100% infallible
Trending days are tricky for it unless you choose the correct level or trade with the trend on a pullback
You may find that the trade of the day was 10minustre before you got to your desk – and you will have to miss it..
Other systems will enable you to take these trades but are not part of this system…and should be ignored.

Discretionary System Rules Example:
Using the discretionary trading workspace at
http://www.micro-trends.co.uk/downloads

System Rules
On close….

Trade Setup
Base Setups = New High or Low

Trade Setup Filters
Stop size filter – Money Management
Stop above high or low by 5pips min
Current Session ATR >= 25%

Plus 1 or more other factors of the following:
Technical Elements
• Monthly/Weekly recent daily level
• Woodies Pivots s2 or R2 etc.
• Timing 60min, 4hour bars, 30min bars - • 10mins to e.g. 7.50 or 9:10
• Whole numbers, Figures, “15”
• current session>= 100% ATR HTF Daily average
• FIBS Prev daily month/week, year 18%,23% 50% , 62% 76% etc.

Trade Entry
Use an entry to show weakness but gets you in to avoid the stop size filter
MT3 Trade Entry Signal: edit as suitable
• 30 min Entry candle close below/above Trade setup candle
• Renko close/ above Trade setup low or high
• Range close/ above Trade setup low or high
• 10 Min close/ above Trade setup low or high
• 987 Tick close/ above Trade setup low or high

Trading like a Pro
Recognise what is a good entry learn to filter out the not so easy ones.

By doing this you can then increase position size and catcht the whole of the daily bar and more in pips.

Money Management
Based on a $600 account trading a minilot $1 per pip
2.5% at $1 per pip = 15 pips of RISK

Dynamic position sizing based on stop loss…
2.5% is total risk available….
Therefore 2..5% as pips / stop = position size
15pips /7.5pips = 2

Lots to target Unit allocation
2 units/ 2 lots = 1 lot per unit
1 unit target 20pips + B/E stop
2 unit target technical target

Maximum Trade Targets
Set to daily average MT ATR HTF of 100% of the Daily chart….
GBPUSD Daily ATR (currently around 150pips)

RISK MANAGEMENT
Risk factor set by money management total risk factor = 2.5%
Risk is a max of 2.5%
The total of all lots and stop sizes must be
From 7.5 pips - 15pips per lot…

I will be prvoding a step by step tutorial with some more advanced techniques in the future . Incidently i use software signals as a labour saving device - I dont have time to write cunning BS and net 1000s of new traders - provide them a magic black box with a subscription- i tell you how to trade and what the software does for you.. It means i can get on with my trading and not have to look after dozens of dependany traders.

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