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Market is in a Superposition all the time
• The Market is always Long & Short at the same time (Quantum Ambiguity)
• Looking at a current time snapshot of the Market, causes it to be either Long or Short, at
the moment we are evaluating it (Observer's Paradox)
• We can’t determine what state the Market is in, until we take a peek at it, and this is
always after the fact (Schrodinger Cat Experiment)
• We trade in both directions of the Market at the same time, as we know for certain that
change never stops, and sooner or later the Market has to change its way from one
direction to the other
• And if it doesn’t, we aim at profit taking inside the consolidation range in which the
Market has been stuck in sideways
Albert Einstein
Everyone has heard about how easy it is to
trade and make a quick buck in the FX Market
FACT is: Most people who tried have failed!
But regardless of its perceived simplicity…
They say: All you need is to follow the trend –
BUY Low, SELL High and there you have it…
Trading FX is a ZERO loss game. Traders are liquidity consumers. For them
to win, means a Liquidity Provider – the Banks have to temporarily loose in
the mean time, while they still make commissions from the transactions.
Most Traders are being outgunned and find themselves fighting an uphill
battle, against the smartest professional traders in the world, who utilize
21st century technology, in contrast with ragtag individual traders, armed
with outdated, useless methodologies, reminiscent of using a 16th century
Musket, which is capable of firing one lead ball at a time, compared to a
laser-gun blasting adversary…
Instead, they should be fighting back with automated multi-shot trading
systems, such as the ZennerGUN Z4…
“Always Want What The Market Wants!"
Price Action is ALL you NEED to care about…
This means that, You Always have to GO with the Latest
Directional move of the Market and never Resist it…
Never ask the question “Why didn’t the Market go in my
direction”. There is no answer to a question like this, as no
body know when and where the Market will ever go next!
T&F Analysisdonotwork
mostofthetime
Mainstream Technical & Fundamental
Analysis Based Trading is Like:
"A Broken Clock That Shows The Right Time Twice a day”
"Driving a Car With a Gas And a Break Pedals Only, But
No Steering Wheel.“ (How far can you go?)
Why did airplane engineers decided to have their
pilots, sitting in a cockpit located at the front of the
craft instead of at the rear end?
Following Technical Analysis for trading is like flying an airplane with its
cockpit located at the rear end of the craft – capable of observing what
has happened only in the past, with no idea of what is coming up…
It is doomed to CRASH at the first hill side, when there is no one to
observe what is happening NOW and to steer it AWAY from it…
What ZennerTrading does best is, prevent you from crashing…
You may Not know which Way the Market Winds
are Going to Blow in Today,
BUTIf you Adjust Your Sails in Accordance with its direction,
You Can Still Reach Your Destination
Even When Having To Sail Against the Wind...
Uneducated Traders are doomed to lose by design
The Markets are rigged in the broker’s favor
Undertaking unsubstantiated High Risk, expect to win on each trade in one direction only.
Use disproportionally high lot sizes compared to their account size
Don’t leave enough available funds to withstand Draw Downs.
Use Stops as means to prevent trading losses Leading to Negative Equity Curves over time.
Misguided wishful theories behind setting Profit target, Stop out levels and Risk Reward ratios.
Delusional, overconfident and stubborn reaction to adverse market movements, leading to
loses.
Brokers make their profit on commissions earned by volumes sold and bought, regardless
of price level, they don’t care if a pair will go up or down.
Brokers push prices up and down in search for more buying and selling by market
participants.
Markets represent a Random/Unpredictable price distribution, seeking equilibrium
between buyers and sellers.
Market participants Agree on Price, disagree on Direction.
Only Brokers can gauge the real volume ratio between existing buying and selling in the
market.
The Volume you see in your Chart is Tick Volume, which is indicative of nothing.
The Future is never exactly the same as the past
The number of market participants and their ideas/views of the
market are dynamic/changing all the time, and thus unknown
at any specific point of time
There are no means for accurate measurement of the real
market sentiment/supply and demand at all times
A fact is a statement that can be proven true or false.
An opinion is an expression of a person’s feelings that
cannot be proven.
Opinions can be based on facts or emotions and
sometimes they are meant to deliberately mislead others.
Therefore, it is important to be aware of the source,
purpose, and choice of language in communicating a
certain information…
The Trend seams to be an illusion, an opinion held by a
market participant not based in fact. It is something that
becomes a reality/visible only in hindsight or after the fact,
after it has developed, at which point it is usually too late to
jump in and follow through with a trade in the same
direction…
While this same trend was developing, it never looked like,
what it eventually turned out to be…
The Market can look any way it wants and it always looks
pretty in all directions it decides to go, with or without our
proper or improper opinion of it…
Your brain is your worst enemy when it comes to trading decisions…
It is Scientifically proven that on a Physiological level, Your brain will choose to
cheat into making a decision rather than admit it doesn’t know something - which
way the market is going to go… It is frequently unreasonably opinionated based
on accidental, anecdotal, random facts about pre-existing Market conditions…
There is no secure rational way of determining market direction at any time…
Any Trading decision you make has a 50/50 chance and could not be 100%
substantiated by existing Market facts…
We can ONLY make Educated Assumptions of possible Market Behavior, and
adjust our trading mindset accordingly, both on the long and short sides as well…
Using a Market Neutral trading strategy, which assumes all
possible ways a Market can move in and profit from its
versatility…
You have to be prepared that not each trade will turn out a
winner
Nevertheless, one trade, out of a dozen trades in any
direction, has a better chance of taking profit than executing
just one trade in one direction…
Luckily the markets can EITHER obtain direction
out of a BRACKET/RANGE
As they BREAK OUT either UP or DOWN
OR
They do not have direction and they move
SIDEWAYS in a consolidation pattern
You BUY the TOP of the RANGE
OR
You SELL the BOTTOM of the RANGE
This is called Consolidation Channel…
RANGE
You BUY the BOTTOM of the RANGE
OR
You SELL the TOP of the RANGE
This is called Consolidation Channel…
RANGE
We see a perfect formation of a Consolidation Pattern/Bracket
Market, after a significant directional move to the upside…
Bracket Market is being Hedged by 2 autonomous EAs at both the
Top & Bottom of the Linear Regression Channel, aimed at initial
continued action within the range, with counter-balancers pointing
in the direction of a possible breakout to the Long and Short sides…
A Trading Strategy equally biased to taking profit on both sides of the Market,
regardless of Technical and Fundamental indicators.
The only thing that matters is PRICE ACTION.
Market Neutrality is achieved by multiple hedging of an existing positions,
instead of accumulating multiple stop losses…
A Fixed Profit is taken regardless of the direction of the winning trade
Each subsequent leg in the hedging sequence offsets current losses and
commissions.
If only one leg (out of a dozen in a hedging sequence) is successful, it would
be powerful enough to pay off all previous losses and head out with the same
incremental profit size, as the very first trade would have profited, should it
had reached its profit target in the first place.
Trading Commission can be:
Paid Separate on the side
$5 per 1 Standard Lot (100,000 units of base currency) Round Trip
OR
Baked into the spread (Preferred)
1 pip over existing spread
1. New Leg in the execution sequence starts where previous leg ends in
a loss…
2. Winning Leg in the execution sequence takes profit one spread away
from price level where loosing leg stops out
• All winning Legs take Profit at the same time when All loosing Legs take
losses.
• Execution Sequence designed to be Net Positive at all times, regardless
of current losses
RISK RANGE
Main Position
1 Lot
Hedge Position
2 Lots
Long Profit Target
Short Profit Target
10
10
10
Long Stop Loss
Short Stop Loss
RISK RANGE
Main Position
1 Lot
Hedge Position
3 Lots
Long Profit
Target
Short Profit Target &
Long Stop Loss
10
10
10
20
20
INPUT PARAMETERS OUTPUT
Try#
Desired
Net
Profit
Required
Profit
ActualNetLoss
ActualLoss+
Com
m
ission
SLPips(spread
included)TP
Pips
Distance
b/w
positionsPrice
Action
ActualSL
ActualTP
Com
m
ission
Cost
Required
Lots
Position
Type
0 $8.00 $8.00 $8.00 $8.00 8.00 8.00 0 1.59000 1.59080 1.58920 $0.00 0.1000 Short
1 $8.00 $16.00 $16.00 $16.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 0.2000 Long
2 $8.00 $32.00 $32.00 $32.00 8.00 8.00 8 1.59000 1.59080 1.58920 $0.00 0.4000 Short
3 $8.00 $64.00 $64.00 $64.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 0.8000 Long
4 $8.00 $128.00 $128.00 $128.00 8.00 8.00 8 1.59000 1.59080 1.58920 $0.00 1.6000 Short
5 $8.00 $256.00 $256.00 $256.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 3.2000 Long
6 $8.00 $512.00 $512.00 $512.00 8.00 8.00 -8 1.59000 1.58920 1.59080 $0.00 6.4000 Long
7 $8.00 $1,024.00 $1,024.00 $1,024.00 8.00 8.00 8 1.58920 1.59000 1.58840 $0.00 12.8000 Short
8 $8.00 $2,048.00 $2,048.00 $2,048.00 8.00 8.00 8 1.59000 1.58920 1.59080 $0.00 25.6000 Long
9 $8.00 $4,096.00 $4,096.00 $4,096.00 8.00 8.00 8 1.58920 1.59000 1.58840 $0.00 51.2000 Short
Break
Out BracketMarket
Distance is 10 pips, because it is supposed to be 12 - 2 (spread) as the BUY entry is on the ASK…
The targeted 10 – 2 = 8 pip exit is 2 pip (spread) before the ASK (early) as it is selling on the BID.
Altogether 4 pips shorter…
INPUT PARAMETERS OUTPUT
Try#
DesiredNet
Profit
Required
Profit
ActualNetLoss
ActualLoss+
Com
m
ission
ActualProfit
SLPips(spread
included)
TPPips
Distanceb/w
positionsCom
m
ission
Base
PriceAction
ActualSL
ActualTP
ActualNotional
Com
m
ission
Cost
Required
Lots
Position
Type
0 $125.10 $125.10 $42.89 $42.89 $125.10 12.00 35.00 0.00 1.64160 1.64160 1.64280 1.63810 58,675.47$ $0.00 0.3574 Short
1 $125.10 $167.99 $57.60 $57.60 $167.99 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 78,960.77$ $0.00 0.4800 Long
2 $125.10 $225.59 $77.34 $77.34 $225.59 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 105,807.45$ $0.00 0.6445 Short
3 $125.10 $302.93 $103.86 $103.86 $302.93 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 142,387.22$ $0.00 0.8655 Long
4 $125.10 $406.80 $139.47 $139.47 $406.80 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 190,798.90$ $0.00 1.1623 Short
5 $125.10 $546.27 $187.29 $187.29 $546.27 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 256,761.93$ $0.00 1.5608 Long
6 $125.10 $733.56 $1,283.73 $1,283.73 $733.56 14.00 8.00 -10.00 1.64590 1.64180 1.64040 1.64260 1,509,209.91$ $0.00 9.1695 Long
7 $125.10 $2,017.29 $691.64 $691.64 $2,017.29 12.00 35.00 14.00 1.64240 1.64040 1.64160 1.63690 946,628.94$ $0.00 5.7637 Short
8 $125.10 $2,708.94 $928.78 $928.78 $2,708.94 12.00 35.00 12.00 1.64590 1.64160 1.64040 1.64510 1,273,896.37$ $0.00 7.7398 Long
9 $125.10 $3,637.71 $1,247.22 $1,247.22 $3,637.71 12.00 35.00 12.00 1.64240 1.64040 1.64160 1.63690 1,707,023.12$ $0.00 10.3935 Short
INPUT PARAMETERS OUTPUT
Try#
DesiredNet
Profit
Required
Profit
ActualNetLoss
ActualLoss+
Com
m
ission
ActualProfit
SLPips(spread
included)
TPPips
Distanceb/w
positionsCom
m
ission
Base
PriceAction
ActualSL
ActualTP
ActualNotional
Com
m
ission
Cost
Required
Lots
Position
Type
0 $125.10 $125.10 $42.89 $42.89 $125.10 12.00 35.00 0.00 1.64160 1.64160 1.64280 1.63810 58,675.47$ $0.00 0.3574 Short
1 $0.00 $42.89 $14.71 $14.71 $42.89 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 20,160.20$ $0.00 0.1225 Long
2 $0.00 $57.60 $19.75 $19.75 $57.60 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 27,014.67$ $0.00 0.1646 Short
3 $0.00 $77.34 $26.52 $26.52 $77.34 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 36,354.18$ $0.00 0.2210 Long
4 $0.00 $103.86 $35.61 $35.61 $103.86 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 48,714.61$ $0.00 0.2968 Short
5 $0.00 $139.47 $47.82 $47.82 $139.47 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 65,556.24$ $0.00 0.3985 Long
6 $0.00 $187.29 $327.76 $327.76 $187.29 14.00 8.00 -10.00 1.64590 1.64180 1.64040 1.64260 385,330.19$ $0.00 2.3412 Long
7 $0.00 $515.05 $176.59 $176.59 $515.05 12.00 35.00 14.00 1.64240 1.64040 1.64160 1.63690 241,692.50$ $0.00 1.4716 Short
8 $0.00 $691.64 $237.13 $237.13 $691.64 12.00 35.00 12.00 1.64590 1.64160 1.64040 1.64510 325,250.14$ $0.00 1.9761 Long
9 $0.00 $928.78 $318.44 $318.44 $928.78 12.00 35.00 12.00 1.64240 1.64040 1.64160 1.63690 435,835.69$ $0.00 2.6537 Short
• Insuring your original trade to either succeed or exit at a ZERO loss
• Replaces need for setting stop losses and having to absorb it at the same time
• Required resources for hedging sequence execution at minimum
• Leg 9 requires only 2.65 lots compared to 10.39 in previous NET Positive Hedge
CURRENT
INPUT PARAMETERS OUTPUT
#
Desired
Net
Profit
Required
Profit
ActualNetLoss
ActualLoss+
Com
m
ission
SLPips(spread
included)
TP
Pips
Distance
b/w
positions
Price
Action
ActualSL
ActualTP
Com
m
ission
Cost
Required
Lots
Position
Type
$3.00 $3.00 $6.00 $6.00 6.00 3.00 0 1.64000 1.63940 1.64030 $0.00 0.1000 Long
$6.00 $12.00 $18.00 $18.00 9.00 6.00 6 1.63940 1.64030 1.63880 $0.00 0.2000 Short
$12.00 $36.00 $36.00 $36.00 12.00 12.00 9 1.64030 1.63910 1.64150 $0.00 0.3000 Long
$21.00 $81.00 $57.86 $57.86 15.00 21.00 12 1.63910 1.64060 1.63700 $0.00 0.3857 Short
$33.00 $150.86 $82.29 $82.29 18.00 33.00 15 1.64060 1.63880 1.64390 $0.00 0.4571 Long
$33.00 $233.14 $148.36 $148.36 21.00 33.00 18 1.63880 1.64090 1.63550 $0.00 0.7065 Short
$33.00 $381.51 $277.46 $277.46 24.00 33.00 21 1.64090 1.63850 1.64420 $0.00 1.1561 Long
$33.00 $658.97 $539.15 $539.15 27.00 33.00 24 1.63850 1.64120 1.63520 $0.00 1.9969 Short
$33.00 $1,198.12 $1,089.20 $1,089.20 30.00 33.00 27 1.64120 1.63820 1.64450 $0.00 3.6307 Long
$33.00 $2,287.32 $2,287.32 $2,287.32 33.00 33.00 30 1.63820 1.64150 1.63490 $0.00 6.9313 Short
Try #
Desired Net
Profit
Required
Profit Actual Net Loss
Actual Loss +
Commission
SL Pips
(spread
included) TP Pips
Distance b/w
positions Price Action Actual SL Actual TP
Commission
Cost
Required
Lots Position Type
0 $20.00 $20.00 $20.00 $20.00 30.00 30.00 0 1.64000 1.63700 1.64300 $0.00 0.0667Long
1 $20.00 $40.00 $40.00 $40.00 30.00 30.00 30 1.63700 1.64000 1.63400 $0.00 0.1333Short
2 $20.00 $80.00 $80.00 $80.00 30.00 30.00 30 1.64000 1.63700 1.64300 $0.00 0.2667Long
3 $20.00 $160.00 $133.33 $133.33 25.00 30.00 30 1.63700 1.63950 1.63400 $0.00 0.5333Short
4 $20.00 $293.33 $195.56 $195.56 20.00 30.00 25 1.63950 1.63750 1.64250 $0.00 0.9778Long
5 $20.00 $488.89 $244.44 $244.44 15.00 30.00 20 1.63750 1.63900 1.63450 $0.00 1.6296Short
6 $20.00 $733.33 $244.44 $244.44 10.00 30.00 15 1.63900 1.63800 1.64200 $0.00 2.4444Long
7 $20.00 $977.78 $325.93 $325.93 10.00 30.00 10 1.63800 1.63900 1.63500 $0.00 3.2593Short
8 $20.00 $1,303.70 $521.48 $521.48 10.00 25.00 10 1.63900 1.63800 1.64150 $0.00 5.2148Long
9 $20.00 $1,825.19 $730.07 $730.07 10.00 25.00 10 1.63800 1.63900 1.63550 $0.00 7.3007Short
Transaction #48 Produces 2 pip NET profit on top
of the required 6 pips to cover expenses and take
fixed profit, thus the total return for this series of
executions comes to $76.9 instead of the
targeted $6.
Winning Leg in the execution sequence takes profit, one spread
away from price level where loosing leg stops out with a loss
All winning Legs take Profit at the same time when All loosing Legs
take losses.
Execution Sequence designed to be Net Positive at all times
INPUT PARAMETERS OUTPUT
Try#
Desired
Net
Profit
Required
Profit
ActualNetLoss
ActualLoss+
Com
m
ission
ActualProfit
SLPips(spread
included)
TP
Pips
Distance
b/w
positionsCom
m
ission
Base
Price
Action
ActualSL
ActualTP
ActualNotional
Com
m
ission
Cost
Required
Lots
Position
Type
0 $1,001.00 $1,001.00 $1,356.60 $1,356.60 $997.50 102.00 75.00 0 1.60469 1.60469 1.61489 1.59719 213,423.77$ $0.00 1.3300 Short
1 $1,001.00 $2,357.60 $3,202.80 $3,202.80 $2,355.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 506,227.66$ $0.00 3.1400 Long
2 $0.00 $3,202.80 $4,355.40 $4,355.40 $3,202.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 685,202.63$ $0.00 4.2700 Short
3 $0.00 $4,355.40 $5,926.20 $5,926.20 $4,357.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 936,682.39$ $0.00 5.8100 Long
4 $0.00 $5,926.20 $8,058.00 $8,058.00 $5,925.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 1,267,705.10$ $0.00 7.9000 Short
5 $0.00 $8,058.00 $10,954.80 $10,954.80 $8,055.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 1,731,492.06$ $0.00 10.7400 Long
6 $0.00 $10,954.80 $14,902.20 $14,902.20 $10,957.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 2,344,452.09$ $0.00 14.6100 Short
7 $0.00 $14,902.20 $20,267.40 $20,267.40 $14,902.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 3,203,421.53$ $0.00 19.8700 Long
8 $0.00 $20,267.40 $27,560.40 $27,560.40 $20,265.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 4,335,872.38$ $0.00 27.0200 Short
9 $0.00 $27,560.40 $37,485.00 $37,485.00 $27,562.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 5,924,798.25$ $0.00 36.7500 Long
10 $0.00 $37,485.00 $50,979.60 $50,979.60 $37,485.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 8,020,240.62$ $0.00 49.9800 Short
11 $0.00 $50,979.60 $69,329.40 $69,329.40 $50,977.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 10,958,055.43$ $0.00 67.9700 Long
INPUT PARAMETERS OUTPUT 1.00%
Try#
Desired
Net
Profit
Required
Profit
ActualNetLoss
ActualLoss+
Com
m
ission
ActualProfit
SLPips(spread
included)
TP
Pips
Distance
b/w
positionsCom
m
ission
Base
Price
Action
ActualSL
ActualTP
ActualNotional
Com
m
ission
Cost
Required
Lots
Position
Type
Required
Funds
M
argin
0 $1,001.00 $1,001.00 $1,356.60 $1,356.60 $997.50 102.00 75.00 0 1.60469 1.60469 1.61489 1.59719 213,423.77$ $0.00 1.3300 Short $750.00 0 -$2,134.24
1 $1,001.00 $2,357.60 $3,202.80 $3,202.80 $2,355.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 506,227.66$ $0.00 3.1400 Long $750.00 0 $5,046.58
2 $0.00 $3,202.80 $4,355.40 $4,355.40 $3,202.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 685,202.63$ $0.00 4.2700 Short $750.00 0 -$6,852.03
3 $0.00 $4,355.40 $5,926.20 $5,926.20 $4,357.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 936,682.39$ $0.00 5.8100 Long $750.00 0 $9,337.77
4 $0.00 $5,926.20 $8,058.00 $8,058.00 $5,925.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 1,267,705.10$ $0.00 7.9000 Short $750.00 0 -$12,677.05
5 $0.00 $8,058.00 $10,954.80 $10,954.80 $8,055.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 1,731,492.06$ $0.00 10.7400 Long $750.00 0 $17,261.22
6 $0.00 $10,954.80 $14,902.20 $14,902.20 $10,957.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 2,344,452.09$ $0.00 14.6100 Short $750.00 0 -$23,444.52
7 $0.00 $14,902.20 $20,267.40 $20,267.40 $14,902.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 3,203,421.53$ $0.00 19.8700 Long $750.00 0 $31,934.87
8 $0.00 $20,267.40 $27,560.40 $27,560.40 $20,265.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 4,335,872.38$ $0.00 27.0200 Short $750.00 0 -$43,358.72
9 $0.00 $27,560.40 $37,485.00 $37,485.00 $27,562.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 5,924,798.25$ $0.00 36.7500 Long $750.00 0 $59,064.23
10 $0.00 $37,485.00 $50,979.60 $50,979.60 $37,485.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 8,020,240.62$ $0.00 49.9800 Short $750.00 0 -$80,202.41
11 $0.00 $50,979.60 $69,329.40 $69,329.40 $50,977.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 10,958,055.43$ $0.00 67.9700 Long $750.00 0 $109,240.70
• Long position’s margins get offset by Short’s position margins, thus providing
extra equity for new trades to be accumulated…
• If directional move continues through the initial Profit Target Level, all
winning legs start to accumulate extra net pips by individual dynamic
position trailing, thus significantly increasing Actual profit potential, as those
profits stack up on top of the already secured, predefined, net fixed, “baked
in” into the hedging sequence profits…
• Keeping Multiple Opened position in opposite directions not supported by
US Brokers (FIFO requirements)
It is a Custom Tailored Multi-Purpose Self
Hedging EA for MT4
Capable of performing All the
functionality exposed so far in this
presentation…
The first one is called Top Satellite and its initial trade direction is always Short.
The second one is called Bottom Satellite and its initial trade direction is always
Long
Usually they start simultaneously as Market order at the current BID and ASK in
the same lot sizes or they can be launched as Pending orders at specific Price
levels.
Main Bottom Satellite
Current ASK Market Order
Main Top Satellite
Current BIDMarket Order
SPREAD
Hedged Long
Hedged Short
Each one of the Main EAs contains in itself 11 autonomous Slave counter balancing
EAs, providing the multiple legs in the Hedging execution sequence.
A single chart is allocated for each Master or Slave EAs.
Main Top Satellite
Main Top Slave 2
Satellite
Main Top Slave 3
Satellite
Main Top Slave 5
Satellite
Main Top Slave 6
Satellite
Main Top Slave 8
Satellite
Main Top Slave 9
Satellite
Main Top Slave 4
Satellite
Main Top Slave 7
Satellite
Main Top Slave Final
Satellite
Main Top Slave
Equilibrium Satellite
Main Top Slave 10
Satellite
Each Master Main EA has a second mirror image EA, called Top Satellite 2 and
Bottom Satellite 2.
They are positioned as Pending orders, a certain distance away from their
respective Main EA entry points.
Their direction is against its Main EAs direction.
Main Bottom Satellite
Main Bottom Mirror Satellite
Current ASK
Market Order
Main Bottom Satellite Profit Target
And
Main Bottom Mirror Satellite Entry Point
Pending Order
Market Order
Market Order Main Bottom Mirror Slave Satellite
initial Hedge position
Main Bottom Satellite Slave
initial Hedge position
Main Top Mirror Satellite
Main Top Satellite
Current BID
Market Order
Main Top Satellite Profit Target
And
Main Top Mirror Satellite Entry Point
Pending Order
Market Order
Market Order Main Top Slave Satellite
initial Hedge position
Main Top Mirror Satellite Slave
initial Hedge position
Each one of the Mirror Main EAs contains in itself 11 autonomous Slave counter
balancing EAs, providing the multiple legs in the Hedging execution sequence.
A single chart is allocated for each Master or Slave EAs.
Main Top Mirror
Satellite
Main Top Mirror Slave
2 Satellite
Main Top Mirror Slave
3 Satellite
Main Top Mirror Slave
5 Satellite
Main Top Mirror Slave
6 Satellite
Main Top Mirror Slave
8 Satellite
Main Top Mirror Slave
9 Satellite
Main Top Mirror Slave
4 Satellite
Main Top Mirror Slave
7 Satellite
Main Top Mirror Slave
Final Satellite
Main Top Mirror Slave
Equilibrium Satellite
Main Top Mirror Slave
10 Satellite
SPREAD
Main Top Mirror Satellite
Main Top Satellite
Current Market Order
Pending Order
Hedged Market Order
Hedged Market Order
Main Bottom Satellite
Main Bottom Mirror Satellite
Current Market Order
Pending Order
Hedged Market Order
Hedged Market Order
ASK
BID
The Ultimate Financially Engineered
Market Neutral Money Making Machine!
The Trading System is a novel fully automated Meta-Trader 4
based Expert Adviser, which can be defined as:
• Autonomous
• Adaptive
• Self Priming
• Bi-Directional
• Asymmetrical
• Double-Crossed
• Price Action Fronting
• Trending & Bracket Market Enabled
• Widened Spread Protected
• Entry & Exit Slippage Compensated
• Custom Dynamic Ratchet Trailing Enabled
• Ultra High Frequency Scalping Enabled
The Trading System is a novel fully automated Meta-Trader 4
based Expert Adviser, which can be defined as:
• Autonomous
• Adaptive
• Self Priming
• Bi-Directional
• Asymmetrical
• Double-Crossed
• Price Action Fronting
• Trending & Bracket Market Enabled
• Widened Spread Protected
• Entry & Exit Slippage Compensated
• Custom Dynamic Ratchet Trailing Enabled
• Ultra High Frequency Scalping Enabled
Say Good Bye to All
• Forecasts
• Presages
• Predictions
• Gut-feelings
• Perceptions
• Intuitions
• Expectations
The strategy boils down to its advanced,
high speed, asynchronously hedged order executions
on both sides of the market, in the same instrument,
so that it keeps the trader in the trade up to 12 times,
rather than having him taken out on a stop loss.
To achieve this, the system opens new consecutive
orders in the opposite direction of its preceding trade,
with a lot size calculated in such a way,
so that when one out of the dozen trades reaches its
profit target, the actual profit amount gets stripped from
all prior losses and commissions, thus
delivering a desired, user specific net positive profit.
Each time a trader executes an order, his odds of winning to losing
are 50/50.
The ZennerGUN Strategy can be viewed as a Trading Chance
Amplifier, as it takes an initial trade with a 50/50 odds of winning to
losing and in the course of 10 Counter Balancing order executions,
it arrives at 91/9 chance of winning to losing, while retaining the
original desired profit target size.
A final equal and opposite trade is placed after the end of the series
of multiple aggregated consecutive orders, capping it into a
neutralized balanced hedge, where there is no further gain or loss
accumulation, and trading could be continued manually by the
account manager…
Lot sizes above represent “theoretical” numbers, when Risk/Reward ratios are 1 to 1
and an absolute “Double Up” is required to counter-balance. In reality the
Risk/Reword ratio can be set to 1 to 2, and 1 to 3, which drastically reduces the lot
sizes required to Counter-balance loosing trades…
Hedging Sequence: Targeting $6 profit on each subsequent leg
1. 0.1 Lots Short for 6 pip Profit Target 6 pip Stop Loss
2. 0.2 Lots Long for 6 pip Profit Target 6 pip Stop Loss
3. 0.6 Lots Short for 4 pip Profit Target 6 pip Stop Loss
4. 1.5 Lots Long for 4 pip Profit Target 6 pip Stop Loss
5. 7.5 Lots Short for 2 pip Profit Target 6 pip Stop Loss
6. 30 Lots Long for 2 pip Profit Target 6 pip Stop Loss
7. 40 Lots Short for 6 pip Profit Target 6 pip Stop Loss
8. 160 Lots Long for 6 pip Profit Target 6 pip Stop Loss
9. 320 Lots Short for 6 pip Profit Target 6 pip Stop Loss
10. 320 Lots Long Equilibrium Hedge
INPUT PARAMETERS OUTPUT
Try#
DesiredNet
Profit
Required
Profit
ActualNetLoss
ActualLoss+
Com
m
ission
ActualProfit
SLPips(spread
included)
TPPips
Distanceb/w
positions
Com
m
ission
Base
PriceAction
ActualSL
ActualTP
ActualNotional
Com
m
ission
Cost
Required
Lots
Position
Type
0 $6.00 $6.00 $6.04 $6.04 $6.04 6.00 6.00 0 1.60413 159.249 159.309 159.189 16,041.30$ $0.00 0.1000 Short
1 $6.00 $12.04 $12.09 $12.09 $12.09 6.00 6.00 6 1.60473 159.309 159.249 159.369 32,094.60$ $0.00 0.2000 Long
2 $6.00 $24.13 $36.26 $36.26 $24.18 6.00 4.00 6 1.60433 159.249 159.309 159.209 96,259.80$ $0.00 0.6000 Short
3 $6.00 $60.39 $90.66 $90.66 $60.44 6.00 4.00 6 1.60473 159.309 159.249 159.349 240,709.50$ $0.00 1.5000 Long
4 $6.00 $151.05 $453.29 $453.29 $151.10 6.00 2.00 6 1.60453 159.249 159.309 159.229 1,203,397.50$ $0.00 7.5000 Short
5 $6.00 $604.34 $1,813.16 $1,813.16 $604.39 6.00 2.00 6 1.60473 159.309 159.249 159.329 4,814,190.00$ $0.00 30.0000 Long
6 $6.00 $2,417.50 $2,417.54 $2,417.54 $2,417.54 6.00 6.00 -6 1.60533 159.249 159.189 159.309 6,421,320.00$ $0.00 40.0000 Long
7 $6.00 $4,835.04 $4,835.08 $4,835.08 $4,835.08 6.00 6.00 6 1.60473 159.189 159.249 159.129 12,837,840.00$ $0.00 80.0000 Short
8 $6.00 $9,670.13 $9,670.17 $9,670.17 $9,670.17 6.00 6.00 6 1.60533 159.249 159.189 159.309 25,685,280.00$ $0.00 160.0000 Long
9 $6.00 $19,340.29 $19,340.34 $19,340.34 $19,340.34 6.00 6.00 6 1.60473 159.189 159.249 159.129 51,351,360.00$ $0.00 320.0000 Short
Leg number 6 and 7 are pointing in the same directions, as
leg #7 is attempting to capture profit in the channel that has
been generated by the previous 6 trades, 3 on the long
side and 3 on the short side.
This builds the foundation for the assumption, that the
market is moving sideways.
In such conditions, the tops are being shorted and the
bottoms are being bought.
https://docs.google.com/file/d/0BziL_XM2TaNWbjdaTTJ2ZzNTRWs/edit
TheEAgetencapsulateditselfintoanEquilibriumHedged
position,whichcanbeuntiedmanuallyinonefinaltrading
direction,bycuttingonelegatalossandlettingtheotherside
runfortwicethedistancebetweenthehedgedpositions,or
aimtoexitatbreakeven…
By removing the TP target of the Final EA (with no SL in place), and entering a
Neutralizing, equal and opposite position with no TP and SL as well.
In this way the existing loss floats in the market freely, without the need to RISK
and immediately take a loss at the current time.
You wait and buy time for the Market to pick direction and move out of its
current location, before proceeding further with untying the Equilibrium hedge
in one direction or the other, according to Market footprint…
Encapsulated Loss -$1000
10
10
Loss Remains the Same at
this Price Level
10
10
Loss Remains the Same at
this Price Level
10
10
+25 pips
-50 pips
No TPs & No SLs
Equilibrium Hedge RANGE
(1) Pays off Short
(2) Pays off previous losses & takes Profit
Cut off the Short Leg of the Equilibrium Hedge after the market has
picked direction on the Long side, and you expect the movement to
continue...
Let it RUN for twice the distance between the hedged positions
Equilibrium Hedge RANGE
(1) Pays off Long
(2) Pays off previous losses & takes Profit
Cut off the Long Leg of the Equilibrium Hedge after the market has picked
direction on the Short side, and you expect the movement to continue...
Let it RUN for at least twice the distance between the hedged positions
This video demonstrates how the ZennerGUN Expert Adviser has entered into an original short
position, (visually represented by red arrow on the chart) with a preset target 15 pips away on the
down side (visually represented by a yellow line at the bottom)
After a multiple up and down jitters, the market rips through its stop loss/reversal level 15 pips
away in the opposite direction (up side), where a new counter-balancing long order gets
calculated and executed on the fly (visually represented by a green arrow) with a lot size adjusted
to compensate for prior losses and commissions including slippage.
This time the long trade reaches its profit target by design,15 pips away on the up side, relative to
its initial entry point (visually represented by a green arrow) - takes profit at the trailing trigger
price level (visually represented by a yellow line at the top) and automatically re-runs itself from
the beginning, by opening a new short position…
If the directional move had continued upwards, a dynamic position trailing would have occurred
from that price level upwards, increasing expectations for actual profits…
https://youtu.be/ONfeHKq2dOY
The Storyof What it represents?
Step1–InitialShortTrade (REDarrow)
ProfitTarget15pipsbelow
(YellowLinebelowREDarrow)
Step2–StopLeveloforiginaltradereached
Exitloosingtrade
Entercounter-balancedhedgedLongposition(GREENarrow)
15pipsabovetheinitialentry(REDarrow)
ProfitTarget15pipsAboveHedgedposition
(YellowLineaboveGREENarrow)
Step3–TakeProfit&Exitcounter-balancedhedgedLongposition
(GREENarrow)15pipsaboveit
(YellowLineaboveGREENarrow)
Step 4 – Enter into a new Initial Short Trade (RED arrow)
Profit Target 15 pips below
(Yellow Line below RED arrow)
New Counter-balancing Long Hedge position (GREEN arrow)
established 15 pips above current entry (RED arrow)
NEVER EVERMISSASINGLECHANCETOTAKEAPROFIT…
There is a way in which 4 Automated Trading Software Systems can be
arranged to work concurrently in such a way, that at all times one part of
the system produces direct profit, while the others coil up and get ready to
produce profit on the next swing of the market.
The ZennerGUN Z4 consists of 4 (four) antagonistically situated Master EAs, each one of them
containing up to 12 Slave EA, interwoven in such a way, so that regardless of what direction the
markets decide to go, it always crosses through the grid space of one of the 2 (two) Main EAs,
which will take an immediate profit at that time, while its counter image EA will temporarily lose,
as it coils up to make a profit in one of the following steps/moves in the Market.
The Main Long & Short TARGET Eas get executed as Market orders at the London’s Session
Open.
At the same time, their corresponding Satellite Image EAs get activated as Pending Orders at
one target distance away in the respective opposite directions.
In this way a GRID is being laid in front of the Market’s path, triggering one of the corresponding
EA, once the Market enters its territory.
From the figure above we can see how the 2 Main and 2 Satellite EAs cover 8 static grid cells,
which trip the price action, should the market cross its territory.
Usually the Main Long and Short EAs get executed at the same time on the current BID and
ASK, TARGETING 30 pip profit both up and down.
In contrast the Satellite Long and Short EAs get executed as Pending Orders 30 pips away
from the Main EAs entry or at the same level where the Main EAs Profit Targets are situated.
So that when one of the Main EAs exits with profit, the Satellite EAs become active market
orders and begin to work in their respective opposite directions.
This is one of the most attractive modes of operations, requiring the
utilization of least financial resources to achieve it goals.
The strategy can be used as an insurance policy against potential risk
from stop outs, for manually trades initiated by traders on technical signals
that have gone bad.
Viewed as an Exit Strategy, it increases the chance for exiting a initial
loosing trade at
• Break Even
• At some fractional desired profit target
Second option is to manually execute multiple hedged trades on various price levels
based on market's own footprint
Suggesting Change in Market’s Direction
• Support and Resistance Levels
• Daily Pivots
• Fibonacci Retracements
• Crossing Moving Averages
• Any Other Wild Technical Condition that can affect the Market one way or the other
Thus should one of the12 possible trades turns profitable by reaching its profit target, it
will successfully offset all incurred prior losses and commissions and still produce net
profit on the same initial trade.
This method is totally Hands Off
Trader sets the system in auto repeat mode and let it hedge itself in a specific Hedging
Pattern Sequence or Range, until it takes profit on one side or the other, out of 12
possible tries…
The User can preset the Time at which the system will launch its first trade as well as set
the time for exiting its last trade, thus preventing itself from trading during the dead times
after the close of New York or before the London Open for example…
The EA can be set to launch ONLY if a certain price level is being reached regardless of
timing…
EA can use both Market and Pending Orders pegged to
specific predefined price levels
When using Pending Order
• Take Profit Target Levels are Visible
• Stop Out Level are Visible (for One-Trade-One-Direction-Only setups with US Brokers)
When using Market Order
• Take Profit Target Levels are Stealthy – InVisible to the Broker
• Stop Out Level are Stealthy – InVisible to the Broker
Thus Broker can’t chase TPs & SL as he is unaware where those actual price
levels are set to be…
EA scans price action 10 times per second, to identify
appropriate levels for exit at a specific profit level or at a
stop loss level.
Exits from an existing position can be executed in two ways
• By a corresponding Close Order in the same size to an existing Market
Order
• As part of the Take Profit or Stop Loss accompanying a Pending Order
The Slippage could be a major factor when profit taking is concerned. The EA
has a built in mechanism to compensate for variable slippage when
calculating counter-balancing hedged positions…
EA can run in Auto-Repeat ON/OFF:
• Single Run Take profit and Exit
• Run Take Profit and Restart from Last Exit
System can be set up to perform Hedged Execution Sequences
comprised from a customizable number of legs, distances between
offsetting positions as well as position lot sizes and directions
EA Supports the following types of currencies:
• US denominated
• Non US denominated
• Crosses like GBP/JPY...
EA is sensible to widened spreads
Extended spread protection freezes EA activity in the event that abnormal
spreads take place (with variable spread brokers). A normal spread size base line
has to be specified per currency pair. The moment it is exceeded, no new
positions get opened until spread normalizes. You can specify if you want to
apply this to exiting a trade on a widened spread. By default I allow exiting a
position on a widened spread but hold off from opening the following leg in an
execution sequence, until spread normalizes with its predefined range.
There a brokers who offer FIXED spreads, which could be more desirable
if the broker is STP/ECN not a Market Maker, allows EAs and doesn’t Re-
quote on order execution requests...
EA Protects profits by placing Stop Loss levels in front
of the entry level
Dynamic trailing stops protect initial profit targets once the price level is
achieved, so that if directional move continues, trailing gets initiated
with variable trailing tails across forthcoming sections in front of the
track of the trade, as it progresses. The End game is always
desired/predefined profit, stacked on top of extra trailing net profit!
Section 3
PROFIT RANGE
Section 1
Trailing
Trigger
Initial Take
Profit
Entry Point
Section 2
36
12 3
9
24
12
8
16
3
9
48
84
Profit
Protection
Price Action Script
https://drive.google.com/file/d/0BziL_XM2TaNWTDdrVW03RkViMlk/edit
Active Chart Looks and Feel
https://docs.google.com/file/d/0BziL_XM2TaNWVHBBcTBWSVpqZWc/edit
The Big Picture - Before and After
https://docs.google.com/file/d/0BziL_XM2TaNWX0daM0hjeVNZVHc/edit
Anatomy of a ZennerGUN
https://docs.google.com/file/d/0BziL_XM2TaNWclJvQTZtbThHZHc/edit
Game Plan
https://docs.google.com/file/d/0BziL_XM2TaNWcUJpaTVCbHIxV28/edit
Unemployment Claims - Before and After
https://docs.google.com/file/d/0BziL_XM2TaNWbmhQR3VyTzZQOU0/edit
Real Trading Account Performance - $20K in 1 month
https://docs.google.com/file/d/0BziL_XM2TaNWU3Q2cnZDZG95Z2M
ZennerTrading Presentation
ZennerTrading Presentation

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ZennerTrading Presentation

  • 1.
  • 2.
  • 3. Market is in a Superposition all the time • The Market is always Long & Short at the same time (Quantum Ambiguity) • Looking at a current time snapshot of the Market, causes it to be either Long or Short, at the moment we are evaluating it (Observer's Paradox) • We can’t determine what state the Market is in, until we take a peek at it, and this is always after the fact (Schrodinger Cat Experiment) • We trade in both directions of the Market at the same time, as we know for certain that change never stops, and sooner or later the Market has to change its way from one direction to the other • And if it doesn’t, we aim at profit taking inside the consolidation range in which the Market has been stuck in sideways
  • 5. Everyone has heard about how easy it is to trade and make a quick buck in the FX Market FACT is: Most people who tried have failed! But regardless of its perceived simplicity… They say: All you need is to follow the trend – BUY Low, SELL High and there you have it…
  • 6. Trading FX is a ZERO loss game. Traders are liquidity consumers. For them to win, means a Liquidity Provider – the Banks have to temporarily loose in the mean time, while they still make commissions from the transactions. Most Traders are being outgunned and find themselves fighting an uphill battle, against the smartest professional traders in the world, who utilize 21st century technology, in contrast with ragtag individual traders, armed with outdated, useless methodologies, reminiscent of using a 16th century Musket, which is capable of firing one lead ball at a time, compared to a laser-gun blasting adversary… Instead, they should be fighting back with automated multi-shot trading systems, such as the ZennerGUN Z4…
  • 7. “Always Want What The Market Wants!" Price Action is ALL you NEED to care about… This means that, You Always have to GO with the Latest Directional move of the Market and never Resist it… Never ask the question “Why didn’t the Market go in my direction”. There is no answer to a question like this, as no body know when and where the Market will ever go next!
  • 8. T&F Analysisdonotwork mostofthetime Mainstream Technical & Fundamental Analysis Based Trading is Like: "A Broken Clock That Shows The Right Time Twice a day” "Driving a Car With a Gas And a Break Pedals Only, But No Steering Wheel.“ (How far can you go?)
  • 9. Why did airplane engineers decided to have their pilots, sitting in a cockpit located at the front of the craft instead of at the rear end? Following Technical Analysis for trading is like flying an airplane with its cockpit located at the rear end of the craft – capable of observing what has happened only in the past, with no idea of what is coming up… It is doomed to CRASH at the first hill side, when there is no one to observe what is happening NOW and to steer it AWAY from it… What ZennerTrading does best is, prevent you from crashing…
  • 10. You may Not know which Way the Market Winds are Going to Blow in Today, BUTIf you Adjust Your Sails in Accordance with its direction, You Can Still Reach Your Destination Even When Having To Sail Against the Wind...
  • 11. Uneducated Traders are doomed to lose by design The Markets are rigged in the broker’s favor Undertaking unsubstantiated High Risk, expect to win on each trade in one direction only. Use disproportionally high lot sizes compared to their account size Don’t leave enough available funds to withstand Draw Downs. Use Stops as means to prevent trading losses Leading to Negative Equity Curves over time. Misguided wishful theories behind setting Profit target, Stop out levels and Risk Reward ratios. Delusional, overconfident and stubborn reaction to adverse market movements, leading to loses. Brokers make their profit on commissions earned by volumes sold and bought, regardless of price level, they don’t care if a pair will go up or down. Brokers push prices up and down in search for more buying and selling by market participants. Markets represent a Random/Unpredictable price distribution, seeking equilibrium between buyers and sellers. Market participants Agree on Price, disagree on Direction. Only Brokers can gauge the real volume ratio between existing buying and selling in the market. The Volume you see in your Chart is Tick Volume, which is indicative of nothing.
  • 12. The Future is never exactly the same as the past The number of market participants and their ideas/views of the market are dynamic/changing all the time, and thus unknown at any specific point of time There are no means for accurate measurement of the real market sentiment/supply and demand at all times
  • 13. A fact is a statement that can be proven true or false. An opinion is an expression of a person’s feelings that cannot be proven. Opinions can be based on facts or emotions and sometimes they are meant to deliberately mislead others. Therefore, it is important to be aware of the source, purpose, and choice of language in communicating a certain information…
  • 14. The Trend seams to be an illusion, an opinion held by a market participant not based in fact. It is something that becomes a reality/visible only in hindsight or after the fact, after it has developed, at which point it is usually too late to jump in and follow through with a trade in the same direction… While this same trend was developing, it never looked like, what it eventually turned out to be… The Market can look any way it wants and it always looks pretty in all directions it decides to go, with or without our proper or improper opinion of it…
  • 15. Your brain is your worst enemy when it comes to trading decisions… It is Scientifically proven that on a Physiological level, Your brain will choose to cheat into making a decision rather than admit it doesn’t know something - which way the market is going to go… It is frequently unreasonably opinionated based on accidental, anecdotal, random facts about pre-existing Market conditions… There is no secure rational way of determining market direction at any time… Any Trading decision you make has a 50/50 chance and could not be 100% substantiated by existing Market facts… We can ONLY make Educated Assumptions of possible Market Behavior, and adjust our trading mindset accordingly, both on the long and short sides as well…
  • 16. Using a Market Neutral trading strategy, which assumes all possible ways a Market can move in and profit from its versatility… You have to be prepared that not each trade will turn out a winner Nevertheless, one trade, out of a dozen trades in any direction, has a better chance of taking profit than executing just one trade in one direction…
  • 17. Luckily the markets can EITHER obtain direction out of a BRACKET/RANGE As they BREAK OUT either UP or DOWN OR They do not have direction and they move SIDEWAYS in a consolidation pattern
  • 18. You BUY the TOP of the RANGE OR You SELL the BOTTOM of the RANGE This is called Consolidation Channel… RANGE
  • 19. You BUY the BOTTOM of the RANGE OR You SELL the TOP of the RANGE This is called Consolidation Channel… RANGE
  • 20. We see a perfect formation of a Consolidation Pattern/Bracket Market, after a significant directional move to the upside… Bracket Market is being Hedged by 2 autonomous EAs at both the Top & Bottom of the Linear Regression Channel, aimed at initial continued action within the range, with counter-balancers pointing in the direction of a possible breakout to the Long and Short sides…
  • 21.
  • 22. A Trading Strategy equally biased to taking profit on both sides of the Market, regardless of Technical and Fundamental indicators. The only thing that matters is PRICE ACTION. Market Neutrality is achieved by multiple hedging of an existing positions, instead of accumulating multiple stop losses… A Fixed Profit is taken regardless of the direction of the winning trade Each subsequent leg in the hedging sequence offsets current losses and commissions. If only one leg (out of a dozen in a hedging sequence) is successful, it would be powerful enough to pay off all previous losses and head out with the same incremental profit size, as the very first trade would have profited, should it had reached its profit target in the first place.
  • 23. Trading Commission can be: Paid Separate on the side $5 per 1 Standard Lot (100,000 units of base currency) Round Trip OR Baked into the spread (Preferred) 1 pip over existing spread
  • 24. 1. New Leg in the execution sequence starts where previous leg ends in a loss… 2. Winning Leg in the execution sequence takes profit one spread away from price level where loosing leg stops out • All winning Legs take Profit at the same time when All loosing Legs take losses. • Execution Sequence designed to be Net Positive at all times, regardless of current losses
  • 25. RISK RANGE Main Position 1 Lot Hedge Position 2 Lots Long Profit Target Short Profit Target 10 10 10 Long Stop Loss Short Stop Loss
  • 26. RISK RANGE Main Position 1 Lot Hedge Position 3 Lots Long Profit Target Short Profit Target & Long Stop Loss 10 10 10 20 20
  • 27.
  • 28. INPUT PARAMETERS OUTPUT Try# Desired Net Profit Required Profit ActualNetLoss ActualLoss+ Com m ission SLPips(spread included)TP Pips Distance b/w positionsPrice Action ActualSL ActualTP Com m ission Cost Required Lots Position Type 0 $8.00 $8.00 $8.00 $8.00 8.00 8.00 0 1.59000 1.59080 1.58920 $0.00 0.1000 Short 1 $8.00 $16.00 $16.00 $16.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 0.2000 Long 2 $8.00 $32.00 $32.00 $32.00 8.00 8.00 8 1.59000 1.59080 1.58920 $0.00 0.4000 Short 3 $8.00 $64.00 $64.00 $64.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 0.8000 Long 4 $8.00 $128.00 $128.00 $128.00 8.00 8.00 8 1.59000 1.59080 1.58920 $0.00 1.6000 Short 5 $8.00 $256.00 $256.00 $256.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 3.2000 Long 6 $8.00 $512.00 $512.00 $512.00 8.00 8.00 -8 1.59000 1.58920 1.59080 $0.00 6.4000 Long 7 $8.00 $1,024.00 $1,024.00 $1,024.00 8.00 8.00 8 1.58920 1.59000 1.58840 $0.00 12.8000 Short 8 $8.00 $2,048.00 $2,048.00 $2,048.00 8.00 8.00 8 1.59000 1.58920 1.59080 $0.00 25.6000 Long 9 $8.00 $4,096.00 $4,096.00 $4,096.00 8.00 8.00 8 1.58920 1.59000 1.58840 $0.00 51.2000 Short
  • 29.
  • 30. Break Out BracketMarket Distance is 10 pips, because it is supposed to be 12 - 2 (spread) as the BUY entry is on the ASK… The targeted 10 – 2 = 8 pip exit is 2 pip (spread) before the ASK (early) as it is selling on the BID. Altogether 4 pips shorter… INPUT PARAMETERS OUTPUT Try# DesiredNet Profit Required Profit ActualNetLoss ActualLoss+ Com m ission ActualProfit SLPips(spread included) TPPips Distanceb/w positionsCom m ission Base PriceAction ActualSL ActualTP ActualNotional Com m ission Cost Required Lots Position Type 0 $125.10 $125.10 $42.89 $42.89 $125.10 12.00 35.00 0.00 1.64160 1.64160 1.64280 1.63810 58,675.47$ $0.00 0.3574 Short 1 $125.10 $167.99 $57.60 $57.60 $167.99 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 78,960.77$ $0.00 0.4800 Long 2 $125.10 $225.59 $77.34 $77.34 $225.59 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 105,807.45$ $0.00 0.6445 Short 3 $125.10 $302.93 $103.86 $103.86 $302.93 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 142,387.22$ $0.00 0.8655 Long 4 $125.10 $406.80 $139.47 $139.47 $406.80 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 190,798.90$ $0.00 1.1623 Short 5 $125.10 $546.27 $187.29 $187.29 $546.27 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 256,761.93$ $0.00 1.5608 Long 6 $125.10 $733.56 $1,283.73 $1,283.73 $733.56 14.00 8.00 -10.00 1.64590 1.64180 1.64040 1.64260 1,509,209.91$ $0.00 9.1695 Long 7 $125.10 $2,017.29 $691.64 $691.64 $2,017.29 12.00 35.00 14.00 1.64240 1.64040 1.64160 1.63690 946,628.94$ $0.00 5.7637 Short 8 $125.10 $2,708.94 $928.78 $928.78 $2,708.94 12.00 35.00 12.00 1.64590 1.64160 1.64040 1.64510 1,273,896.37$ $0.00 7.7398 Long 9 $125.10 $3,637.71 $1,247.22 $1,247.22 $3,637.71 12.00 35.00 12.00 1.64240 1.64040 1.64160 1.63690 1,707,023.12$ $0.00 10.3935 Short
  • 31. INPUT PARAMETERS OUTPUT Try# DesiredNet Profit Required Profit ActualNetLoss ActualLoss+ Com m ission ActualProfit SLPips(spread included) TPPips Distanceb/w positionsCom m ission Base PriceAction ActualSL ActualTP ActualNotional Com m ission Cost Required Lots Position Type 0 $125.10 $125.10 $42.89 $42.89 $125.10 12.00 35.00 0.00 1.64160 1.64160 1.64280 1.63810 58,675.47$ $0.00 0.3574 Short 1 $0.00 $42.89 $14.71 $14.71 $42.89 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 20,160.20$ $0.00 0.1225 Long 2 $0.00 $57.60 $19.75 $19.75 $57.60 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 27,014.67$ $0.00 0.1646 Short 3 $0.00 $77.34 $26.52 $26.52 $77.34 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 36,354.18$ $0.00 0.2210 Long 4 $0.00 $103.86 $35.61 $35.61 $103.86 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 48,714.61$ $0.00 0.2968 Short 5 $0.00 $139.47 $47.82 $47.82 $139.47 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 65,556.24$ $0.00 0.3985 Long 6 $0.00 $187.29 $327.76 $327.76 $187.29 14.00 8.00 -10.00 1.64590 1.64180 1.64040 1.64260 385,330.19$ $0.00 2.3412 Long 7 $0.00 $515.05 $176.59 $176.59 $515.05 12.00 35.00 14.00 1.64240 1.64040 1.64160 1.63690 241,692.50$ $0.00 1.4716 Short 8 $0.00 $691.64 $237.13 $237.13 $691.64 12.00 35.00 12.00 1.64590 1.64160 1.64040 1.64510 325,250.14$ $0.00 1.9761 Long 9 $0.00 $928.78 $318.44 $318.44 $928.78 12.00 35.00 12.00 1.64240 1.64040 1.64160 1.63690 435,835.69$ $0.00 2.6537 Short • Insuring your original trade to either succeed or exit at a ZERO loss • Replaces need for setting stop losses and having to absorb it at the same time • Required resources for hedging sequence execution at minimum • Leg 9 requires only 2.65 lots compared to 10.39 in previous NET Positive Hedge
  • 32.
  • 33. CURRENT INPUT PARAMETERS OUTPUT # Desired Net Profit Required Profit ActualNetLoss ActualLoss+ Com m ission SLPips(spread included) TP Pips Distance b/w positions Price Action ActualSL ActualTP Com m ission Cost Required Lots Position Type $3.00 $3.00 $6.00 $6.00 6.00 3.00 0 1.64000 1.63940 1.64030 $0.00 0.1000 Long $6.00 $12.00 $18.00 $18.00 9.00 6.00 6 1.63940 1.64030 1.63880 $0.00 0.2000 Short $12.00 $36.00 $36.00 $36.00 12.00 12.00 9 1.64030 1.63910 1.64150 $0.00 0.3000 Long $21.00 $81.00 $57.86 $57.86 15.00 21.00 12 1.63910 1.64060 1.63700 $0.00 0.3857 Short $33.00 $150.86 $82.29 $82.29 18.00 33.00 15 1.64060 1.63880 1.64390 $0.00 0.4571 Long $33.00 $233.14 $148.36 $148.36 21.00 33.00 18 1.63880 1.64090 1.63550 $0.00 0.7065 Short $33.00 $381.51 $277.46 $277.46 24.00 33.00 21 1.64090 1.63850 1.64420 $0.00 1.1561 Long $33.00 $658.97 $539.15 $539.15 27.00 33.00 24 1.63850 1.64120 1.63520 $0.00 1.9969 Short $33.00 $1,198.12 $1,089.20 $1,089.20 30.00 33.00 27 1.64120 1.63820 1.64450 $0.00 3.6307 Long $33.00 $2,287.32 $2,287.32 $2,287.32 33.00 33.00 30 1.63820 1.64150 1.63490 $0.00 6.9313 Short
  • 34.
  • 35. Try # Desired Net Profit Required Profit Actual Net Loss Actual Loss + Commission SL Pips (spread included) TP Pips Distance b/w positions Price Action Actual SL Actual TP Commission Cost Required Lots Position Type 0 $20.00 $20.00 $20.00 $20.00 30.00 30.00 0 1.64000 1.63700 1.64300 $0.00 0.0667Long 1 $20.00 $40.00 $40.00 $40.00 30.00 30.00 30 1.63700 1.64000 1.63400 $0.00 0.1333Short 2 $20.00 $80.00 $80.00 $80.00 30.00 30.00 30 1.64000 1.63700 1.64300 $0.00 0.2667Long 3 $20.00 $160.00 $133.33 $133.33 25.00 30.00 30 1.63700 1.63950 1.63400 $0.00 0.5333Short 4 $20.00 $293.33 $195.56 $195.56 20.00 30.00 25 1.63950 1.63750 1.64250 $0.00 0.9778Long 5 $20.00 $488.89 $244.44 $244.44 15.00 30.00 20 1.63750 1.63900 1.63450 $0.00 1.6296Short 6 $20.00 $733.33 $244.44 $244.44 10.00 30.00 15 1.63900 1.63800 1.64200 $0.00 2.4444Long 7 $20.00 $977.78 $325.93 $325.93 10.00 30.00 10 1.63800 1.63900 1.63500 $0.00 3.2593Short 8 $20.00 $1,303.70 $521.48 $521.48 10.00 25.00 10 1.63900 1.63800 1.64150 $0.00 5.2148Long 9 $20.00 $1,825.19 $730.07 $730.07 10.00 25.00 10 1.63800 1.63900 1.63550 $0.00 7.3007Short
  • 36. Transaction #48 Produces 2 pip NET profit on top of the required 6 pips to cover expenses and take fixed profit, thus the total return for this series of executions comes to $76.9 instead of the targeted $6.
  • 37.
  • 38. Winning Leg in the execution sequence takes profit, one spread away from price level where loosing leg stops out with a loss All winning Legs take Profit at the same time when All loosing Legs take losses. Execution Sequence designed to be Net Positive at all times
  • 39.
  • 40. INPUT PARAMETERS OUTPUT Try# Desired Net Profit Required Profit ActualNetLoss ActualLoss+ Com m ission ActualProfit SLPips(spread included) TP Pips Distance b/w positionsCom m ission Base Price Action ActualSL ActualTP ActualNotional Com m ission Cost Required Lots Position Type 0 $1,001.00 $1,001.00 $1,356.60 $1,356.60 $997.50 102.00 75.00 0 1.60469 1.60469 1.61489 1.59719 213,423.77$ $0.00 1.3300 Short 1 $1,001.00 $2,357.60 $3,202.80 $3,202.80 $2,355.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 506,227.66$ $0.00 3.1400 Long 2 $0.00 $3,202.80 $4,355.40 $4,355.40 $3,202.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 685,202.63$ $0.00 4.2700 Short 3 $0.00 $4,355.40 $5,926.20 $5,926.20 $4,357.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 936,682.39$ $0.00 5.8100 Long 4 $0.00 $5,926.20 $8,058.00 $8,058.00 $5,925.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 1,267,705.10$ $0.00 7.9000 Short 5 $0.00 $8,058.00 $10,954.80 $10,954.80 $8,055.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 1,731,492.06$ $0.00 10.7400 Long 6 $0.00 $10,954.80 $14,902.20 $14,902.20 $10,957.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 2,344,452.09$ $0.00 14.6100 Short 7 $0.00 $14,902.20 $20,267.40 $20,267.40 $14,902.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 3,203,421.53$ $0.00 19.8700 Long 8 $0.00 $20,267.40 $27,560.40 $27,560.40 $20,265.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 4,335,872.38$ $0.00 27.0200 Short 9 $0.00 $27,560.40 $37,485.00 $37,485.00 $27,562.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 5,924,798.25$ $0.00 36.7500 Long 10 $0.00 $37,485.00 $50,979.60 $50,979.60 $37,485.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 8,020,240.62$ $0.00 49.9800 Short 11 $0.00 $50,979.60 $69,329.40 $69,329.40 $50,977.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 10,958,055.43$ $0.00 67.9700 Long
  • 41. INPUT PARAMETERS OUTPUT 1.00% Try# Desired Net Profit Required Profit ActualNetLoss ActualLoss+ Com m ission ActualProfit SLPips(spread included) TP Pips Distance b/w positionsCom m ission Base Price Action ActualSL ActualTP ActualNotional Com m ission Cost Required Lots Position Type Required Funds M argin 0 $1,001.00 $1,001.00 $1,356.60 $1,356.60 $997.50 102.00 75.00 0 1.60469 1.60469 1.61489 1.59719 213,423.77$ $0.00 1.3300 Short $750.00 0 -$2,134.24 1 $1,001.00 $2,357.60 $3,202.80 $3,202.80 $2,355.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 506,227.66$ $0.00 3.1400 Long $750.00 0 $5,046.58 2 $0.00 $3,202.80 $4,355.40 $4,355.40 $3,202.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 685,202.63$ $0.00 4.2700 Short $750.00 0 -$6,852.03 3 $0.00 $4,355.40 $5,926.20 $5,926.20 $4,357.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 936,682.39$ $0.00 5.8100 Long $750.00 0 $9,337.77 4 $0.00 $5,926.20 $8,058.00 $8,058.00 $5,925.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 1,267,705.10$ $0.00 7.9000 Short $750.00 0 -$12,677.05 5 $0.00 $8,058.00 $10,954.80 $10,954.80 $8,055.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 1,731,492.06$ $0.00 10.7400 Long $750.00 0 $17,261.22 6 $0.00 $10,954.80 $14,902.20 $14,902.20 $10,957.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 2,344,452.09$ $0.00 14.6100 Short $750.00 0 -$23,444.52 7 $0.00 $14,902.20 $20,267.40 $20,267.40 $14,902.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 3,203,421.53$ $0.00 19.8700 Long $750.00 0 $31,934.87 8 $0.00 $20,267.40 $27,560.40 $27,560.40 $20,265.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 4,335,872.38$ $0.00 27.0200 Short $750.00 0 -$43,358.72 9 $0.00 $27,560.40 $37,485.00 $37,485.00 $27,562.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 5,924,798.25$ $0.00 36.7500 Long $750.00 0 $59,064.23 10 $0.00 $37,485.00 $50,979.60 $50,979.60 $37,485.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 8,020,240.62$ $0.00 49.9800 Short $750.00 0 -$80,202.41 11 $0.00 $50,979.60 $69,329.40 $69,329.40 $50,977.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 10,958,055.43$ $0.00 67.9700 Long $750.00 0 $109,240.70 • Long position’s margins get offset by Short’s position margins, thus providing extra equity for new trades to be accumulated… • If directional move continues through the initial Profit Target Level, all winning legs start to accumulate extra net pips by individual dynamic position trailing, thus significantly increasing Actual profit potential, as those profits stack up on top of the already secured, predefined, net fixed, “baked in” into the hedging sequence profits… • Keeping Multiple Opened position in opposite directions not supported by US Brokers (FIFO requirements)
  • 42. It is a Custom Tailored Multi-Purpose Self Hedging EA for MT4 Capable of performing All the functionality exposed so far in this presentation…
  • 43.
  • 44.
  • 45. The first one is called Top Satellite and its initial trade direction is always Short. The second one is called Bottom Satellite and its initial trade direction is always Long Usually they start simultaneously as Market order at the current BID and ASK in the same lot sizes or they can be launched as Pending orders at specific Price levels.
  • 46. Main Bottom Satellite Current ASK Market Order Main Top Satellite Current BIDMarket Order SPREAD Hedged Long Hedged Short
  • 47. Each one of the Main EAs contains in itself 11 autonomous Slave counter balancing EAs, providing the multiple legs in the Hedging execution sequence. A single chart is allocated for each Master or Slave EAs.
  • 48. Main Top Satellite Main Top Slave 2 Satellite Main Top Slave 3 Satellite Main Top Slave 5 Satellite Main Top Slave 6 Satellite Main Top Slave 8 Satellite Main Top Slave 9 Satellite Main Top Slave 4 Satellite Main Top Slave 7 Satellite Main Top Slave Final Satellite Main Top Slave Equilibrium Satellite Main Top Slave 10 Satellite
  • 49. Each Master Main EA has a second mirror image EA, called Top Satellite 2 and Bottom Satellite 2. They are positioned as Pending orders, a certain distance away from their respective Main EA entry points. Their direction is against its Main EAs direction.
  • 50. Main Bottom Satellite Main Bottom Mirror Satellite Current ASK Market Order Main Bottom Satellite Profit Target And Main Bottom Mirror Satellite Entry Point Pending Order Market Order Market Order Main Bottom Mirror Slave Satellite initial Hedge position Main Bottom Satellite Slave initial Hedge position
  • 51. Main Top Mirror Satellite Main Top Satellite Current BID Market Order Main Top Satellite Profit Target And Main Top Mirror Satellite Entry Point Pending Order Market Order Market Order Main Top Slave Satellite initial Hedge position Main Top Mirror Satellite Slave initial Hedge position
  • 52. Each one of the Mirror Main EAs contains in itself 11 autonomous Slave counter balancing EAs, providing the multiple legs in the Hedging execution sequence. A single chart is allocated for each Master or Slave EAs.
  • 53. Main Top Mirror Satellite Main Top Mirror Slave 2 Satellite Main Top Mirror Slave 3 Satellite Main Top Mirror Slave 5 Satellite Main Top Mirror Slave 6 Satellite Main Top Mirror Slave 8 Satellite Main Top Mirror Slave 9 Satellite Main Top Mirror Slave 4 Satellite Main Top Mirror Slave 7 Satellite Main Top Mirror Slave Final Satellite Main Top Mirror Slave Equilibrium Satellite Main Top Mirror Slave 10 Satellite
  • 54.
  • 55.
  • 56.
  • 57.
  • 58.
  • 59.
  • 60.
  • 61.
  • 62.
  • 63.
  • 64.
  • 65. SPREAD Main Top Mirror Satellite Main Top Satellite Current Market Order Pending Order Hedged Market Order Hedged Market Order Main Bottom Satellite Main Bottom Mirror Satellite Current Market Order Pending Order Hedged Market Order Hedged Market Order ASK BID
  • 66.
  • 67.
  • 68.
  • 69.
  • 70.
  • 71.
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  • 76. The Ultimate Financially Engineered Market Neutral Money Making Machine!
  • 77. The Trading System is a novel fully automated Meta-Trader 4 based Expert Adviser, which can be defined as: • Autonomous • Adaptive • Self Priming • Bi-Directional • Asymmetrical • Double-Crossed • Price Action Fronting • Trending & Bracket Market Enabled • Widened Spread Protected • Entry & Exit Slippage Compensated • Custom Dynamic Ratchet Trailing Enabled • Ultra High Frequency Scalping Enabled
  • 78. The Trading System is a novel fully automated Meta-Trader 4 based Expert Adviser, which can be defined as: • Autonomous • Adaptive • Self Priming • Bi-Directional • Asymmetrical • Double-Crossed • Price Action Fronting • Trending & Bracket Market Enabled • Widened Spread Protected • Entry & Exit Slippage Compensated • Custom Dynamic Ratchet Trailing Enabled • Ultra High Frequency Scalping Enabled
  • 79. Say Good Bye to All • Forecasts • Presages • Predictions • Gut-feelings • Perceptions • Intuitions • Expectations
  • 80. The strategy boils down to its advanced, high speed, asynchronously hedged order executions on both sides of the market, in the same instrument, so that it keeps the trader in the trade up to 12 times, rather than having him taken out on a stop loss. To achieve this, the system opens new consecutive orders in the opposite direction of its preceding trade, with a lot size calculated in such a way, so that when one out of the dozen trades reaches its profit target, the actual profit amount gets stripped from all prior losses and commissions, thus delivering a desired, user specific net positive profit.
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  • 83. Each time a trader executes an order, his odds of winning to losing are 50/50. The ZennerGUN Strategy can be viewed as a Trading Chance Amplifier, as it takes an initial trade with a 50/50 odds of winning to losing and in the course of 10 Counter Balancing order executions, it arrives at 91/9 chance of winning to losing, while retaining the original desired profit target size. A final equal and opposite trade is placed after the end of the series of multiple aggregated consecutive orders, capping it into a neutralized balanced hedge, where there is no further gain or loss accumulation, and trading could be continued manually by the account manager…
  • 84. Lot sizes above represent “theoretical” numbers, when Risk/Reward ratios are 1 to 1 and an absolute “Double Up” is required to counter-balance. In reality the Risk/Reword ratio can be set to 1 to 2, and 1 to 3, which drastically reduces the lot sizes required to Counter-balance loosing trades…
  • 85. Hedging Sequence: Targeting $6 profit on each subsequent leg 1. 0.1 Lots Short for 6 pip Profit Target 6 pip Stop Loss 2. 0.2 Lots Long for 6 pip Profit Target 6 pip Stop Loss 3. 0.6 Lots Short for 4 pip Profit Target 6 pip Stop Loss 4. 1.5 Lots Long for 4 pip Profit Target 6 pip Stop Loss 5. 7.5 Lots Short for 2 pip Profit Target 6 pip Stop Loss 6. 30 Lots Long for 2 pip Profit Target 6 pip Stop Loss 7. 40 Lots Short for 6 pip Profit Target 6 pip Stop Loss 8. 160 Lots Long for 6 pip Profit Target 6 pip Stop Loss 9. 320 Lots Short for 6 pip Profit Target 6 pip Stop Loss 10. 320 Lots Long Equilibrium Hedge
  • 86. INPUT PARAMETERS OUTPUT Try# DesiredNet Profit Required Profit ActualNetLoss ActualLoss+ Com m ission ActualProfit SLPips(spread included) TPPips Distanceb/w positions Com m ission Base PriceAction ActualSL ActualTP ActualNotional Com m ission Cost Required Lots Position Type 0 $6.00 $6.00 $6.04 $6.04 $6.04 6.00 6.00 0 1.60413 159.249 159.309 159.189 16,041.30$ $0.00 0.1000 Short 1 $6.00 $12.04 $12.09 $12.09 $12.09 6.00 6.00 6 1.60473 159.309 159.249 159.369 32,094.60$ $0.00 0.2000 Long 2 $6.00 $24.13 $36.26 $36.26 $24.18 6.00 4.00 6 1.60433 159.249 159.309 159.209 96,259.80$ $0.00 0.6000 Short 3 $6.00 $60.39 $90.66 $90.66 $60.44 6.00 4.00 6 1.60473 159.309 159.249 159.349 240,709.50$ $0.00 1.5000 Long 4 $6.00 $151.05 $453.29 $453.29 $151.10 6.00 2.00 6 1.60453 159.249 159.309 159.229 1,203,397.50$ $0.00 7.5000 Short 5 $6.00 $604.34 $1,813.16 $1,813.16 $604.39 6.00 2.00 6 1.60473 159.309 159.249 159.329 4,814,190.00$ $0.00 30.0000 Long 6 $6.00 $2,417.50 $2,417.54 $2,417.54 $2,417.54 6.00 6.00 -6 1.60533 159.249 159.189 159.309 6,421,320.00$ $0.00 40.0000 Long 7 $6.00 $4,835.04 $4,835.08 $4,835.08 $4,835.08 6.00 6.00 6 1.60473 159.189 159.249 159.129 12,837,840.00$ $0.00 80.0000 Short 8 $6.00 $9,670.13 $9,670.17 $9,670.17 $9,670.17 6.00 6.00 6 1.60533 159.249 159.189 159.309 25,685,280.00$ $0.00 160.0000 Long 9 $6.00 $19,340.29 $19,340.34 $19,340.34 $19,340.34 6.00 6.00 6 1.60473 159.189 159.249 159.129 51,351,360.00$ $0.00 320.0000 Short
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  • 96. Leg number 6 and 7 are pointing in the same directions, as leg #7 is attempting to capture profit in the channel that has been generated by the previous 6 trades, 3 on the long side and 3 on the short side. This builds the foundation for the assumption, that the market is moving sideways. In such conditions, the tops are being shorted and the bottoms are being bought.
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  • 115. By removing the TP target of the Final EA (with no SL in place), and entering a Neutralizing, equal and opposite position with no TP and SL as well. In this way the existing loss floats in the market freely, without the need to RISK and immediately take a loss at the current time. You wait and buy time for the Market to pick direction and move out of its current location, before proceeding further with untying the Equilibrium hedge in one direction or the other, according to Market footprint…
  • 116. Encapsulated Loss -$1000 10 10 Loss Remains the Same at this Price Level 10 10 Loss Remains the Same at this Price Level 10 10 +25 pips -50 pips No TPs & No SLs
  • 117. Equilibrium Hedge RANGE (1) Pays off Short (2) Pays off previous losses & takes Profit Cut off the Short Leg of the Equilibrium Hedge after the market has picked direction on the Long side, and you expect the movement to continue... Let it RUN for twice the distance between the hedged positions
  • 118. Equilibrium Hedge RANGE (1) Pays off Long (2) Pays off previous losses & takes Profit Cut off the Long Leg of the Equilibrium Hedge after the market has picked direction on the Short side, and you expect the movement to continue... Let it RUN for at least twice the distance between the hedged positions
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  • 125. This video demonstrates how the ZennerGUN Expert Adviser has entered into an original short position, (visually represented by red arrow on the chart) with a preset target 15 pips away on the down side (visually represented by a yellow line at the bottom) After a multiple up and down jitters, the market rips through its stop loss/reversal level 15 pips away in the opposite direction (up side), where a new counter-balancing long order gets calculated and executed on the fly (visually represented by a green arrow) with a lot size adjusted to compensate for prior losses and commissions including slippage. This time the long trade reaches its profit target by design,15 pips away on the up side, relative to its initial entry point (visually represented by a green arrow) - takes profit at the trailing trigger price level (visually represented by a yellow line at the top) and automatically re-runs itself from the beginning, by opening a new short position… If the directional move had continued upwards, a dynamic position trailing would have occurred from that price level upwards, increasing expectations for actual profits… https://youtu.be/ONfeHKq2dOY The Storyof What it represents?
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  • 134. Step 4 – Enter into a new Initial Short Trade (RED arrow) Profit Target 15 pips below (Yellow Line below RED arrow) New Counter-balancing Long Hedge position (GREEN arrow) established 15 pips above current entry (RED arrow)
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  • 137. There is a way in which 4 Automated Trading Software Systems can be arranged to work concurrently in such a way, that at all times one part of the system produces direct profit, while the others coil up and get ready to produce profit on the next swing of the market.
  • 138. The ZennerGUN Z4 consists of 4 (four) antagonistically situated Master EAs, each one of them containing up to 12 Slave EA, interwoven in such a way, so that regardless of what direction the markets decide to go, it always crosses through the grid space of one of the 2 (two) Main EAs, which will take an immediate profit at that time, while its counter image EA will temporarily lose, as it coils up to make a profit in one of the following steps/moves in the Market. The Main Long & Short TARGET Eas get executed as Market orders at the London’s Session Open. At the same time, their corresponding Satellite Image EAs get activated as Pending Orders at one target distance away in the respective opposite directions. In this way a GRID is being laid in front of the Market’s path, triggering one of the corresponding EA, once the Market enters its territory. From the figure above we can see how the 2 Main and 2 Satellite EAs cover 8 static grid cells, which trip the price action, should the market cross its territory. Usually the Main Long and Short EAs get executed at the same time on the current BID and ASK, TARGETING 30 pip profit both up and down. In contrast the Satellite Long and Short EAs get executed as Pending Orders 30 pips away from the Main EAs entry or at the same level where the Main EAs Profit Targets are situated. So that when one of the Main EAs exits with profit, the Satellite EAs become active market orders and begin to work in their respective opposite directions.
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  • 140. This is one of the most attractive modes of operations, requiring the utilization of least financial resources to achieve it goals. The strategy can be used as an insurance policy against potential risk from stop outs, for manually trades initiated by traders on technical signals that have gone bad. Viewed as an Exit Strategy, it increases the chance for exiting a initial loosing trade at • Break Even • At some fractional desired profit target
  • 141. Second option is to manually execute multiple hedged trades on various price levels based on market's own footprint Suggesting Change in Market’s Direction • Support and Resistance Levels • Daily Pivots • Fibonacci Retracements • Crossing Moving Averages • Any Other Wild Technical Condition that can affect the Market one way or the other Thus should one of the12 possible trades turns profitable by reaching its profit target, it will successfully offset all incurred prior losses and commissions and still produce net profit on the same initial trade.
  • 142. This method is totally Hands Off Trader sets the system in auto repeat mode and let it hedge itself in a specific Hedging Pattern Sequence or Range, until it takes profit on one side or the other, out of 12 possible tries… The User can preset the Time at which the system will launch its first trade as well as set the time for exiting its last trade, thus preventing itself from trading during the dead times after the close of New York or before the London Open for example… The EA can be set to launch ONLY if a certain price level is being reached regardless of timing…
  • 143. EA can use both Market and Pending Orders pegged to specific predefined price levels When using Pending Order • Take Profit Target Levels are Visible • Stop Out Level are Visible (for One-Trade-One-Direction-Only setups with US Brokers) When using Market Order • Take Profit Target Levels are Stealthy – InVisible to the Broker • Stop Out Level are Stealthy – InVisible to the Broker Thus Broker can’t chase TPs & SL as he is unaware where those actual price levels are set to be…
  • 144. EA scans price action 10 times per second, to identify appropriate levels for exit at a specific profit level or at a stop loss level. Exits from an existing position can be executed in two ways • By a corresponding Close Order in the same size to an existing Market Order • As part of the Take Profit or Stop Loss accompanying a Pending Order The Slippage could be a major factor when profit taking is concerned. The EA has a built in mechanism to compensate for variable slippage when calculating counter-balancing hedged positions…
  • 145. EA can run in Auto-Repeat ON/OFF: • Single Run Take profit and Exit • Run Take Profit and Restart from Last Exit System can be set up to perform Hedged Execution Sequences comprised from a customizable number of legs, distances between offsetting positions as well as position lot sizes and directions
  • 146. EA Supports the following types of currencies: • US denominated • Non US denominated • Crosses like GBP/JPY...
  • 147. EA is sensible to widened spreads Extended spread protection freezes EA activity in the event that abnormal spreads take place (with variable spread brokers). A normal spread size base line has to be specified per currency pair. The moment it is exceeded, no new positions get opened until spread normalizes. You can specify if you want to apply this to exiting a trade on a widened spread. By default I allow exiting a position on a widened spread but hold off from opening the following leg in an execution sequence, until spread normalizes with its predefined range. There a brokers who offer FIXED spreads, which could be more desirable if the broker is STP/ECN not a Market Maker, allows EAs and doesn’t Re- quote on order execution requests...
  • 148. EA Protects profits by placing Stop Loss levels in front of the entry level Dynamic trailing stops protect initial profit targets once the price level is achieved, so that if directional move continues, trailing gets initiated with variable trailing tails across forthcoming sections in front of the track of the trade, as it progresses. The End game is always desired/predefined profit, stacked on top of extra trailing net profit!
  • 149. Section 3 PROFIT RANGE Section 1 Trailing Trigger Initial Take Profit Entry Point Section 2 36 12 3 9 24 12 8 16 3 9 48 84 Profit Protection
  • 150. Price Action Script https://drive.google.com/file/d/0BziL_XM2TaNWTDdrVW03RkViMlk/edit Active Chart Looks and Feel https://docs.google.com/file/d/0BziL_XM2TaNWVHBBcTBWSVpqZWc/edit The Big Picture - Before and After https://docs.google.com/file/d/0BziL_XM2TaNWX0daM0hjeVNZVHc/edit Anatomy of a ZennerGUN https://docs.google.com/file/d/0BziL_XM2TaNWclJvQTZtbThHZHc/edit Game Plan https://docs.google.com/file/d/0BziL_XM2TaNWcUJpaTVCbHIxV28/edit Unemployment Claims - Before and After https://docs.google.com/file/d/0BziL_XM2TaNWbmhQR3VyTzZQOU0/edit Real Trading Account Performance - $20K in 1 month https://docs.google.com/file/d/0BziL_XM2TaNWU3Q2cnZDZG95Z2M