This document provides an overview of the MACFibo Reloaded trading system. It discusses three valid setups for the system: 1) Compass MACFibo Signal, 2) Mini-Compass MACFibo Signal, and 3) Counter-Trend MACFibo Signal. For each setup, it describes the entry and exit criteria, trade management strategies for locking in profits and limiting losses, and any applicable filters. The document is intended to serve as a guide for new traders to learn and implement the MACFibo Reloaded system.
This document provides an overview of the MACFibo Reloaded trading system. It discusses three valid setups for the system: 1) Compass MACFibo Signal, 2) Mini-Compass MACFibo Signal, and 3) Counter-Trend MACFibo Signal. For each setup, it describes the entry and exit criteria, trade management strategies for locking in profits and limiting losses, and any applicable filters. The document is intended to serve as a guide for new traders to learn and implement the MACFibo Reloaded system.
This document provides an overview of the MACFibo Reloaded trading system. It discusses three valid setups for the system: 1) Compass MACFibo Signal, 2) Mini-Compass MACFibo Signal, and 3) Counter-Trend MACFibo Signal. For each setup, it describes the entry and exit criteria, trade management strategies for locking in profits and limiting losses, and any applicable filters. The document is intended to serve as a guide for new traders to learn and implement the MACFibo Reloaded system.
This document provides an overview of the MACFibo Reloaded trading system. It discusses three valid setups for the system: 1) Compass MACFibo Signal, 2) Mini-Compass MACFibo Signal, and 3) Counter-Trend MACFibo Signal. For each setup, it describes the entry and exit criteria, trade management strategies for locking in profits and limiting losses, and any applicable filters. The document is intended to serve as a guide for new traders to learn and implement the MACFibo Reloaded system.
There are so many Macfibo knowledge that I yet share to you all, but as my audience are for newbies, I will take it one thing at a time... Macfibo Edition 1.2, page 1
MACFibo Reloaded stands for Moving Averages Crossover Fibonacci Reloaded. It is almost like any Moving Averages (MA) crossover system you could find, but as you would know by now (if you have traded Macfibo before), it is unique in its mechanism objectively picking a high probable price levels as profit targets upon a valid signal occurred.
Unlike Speed Trap, Macfibo (old version) and Gap-Pivot, I will try my best to cramp all the elements of this system in just one E-Book whilst not making too complicated specifically for new traders (such as trendlines, price action/price patterns, fundamental analysis, volume, market cycles). In other words, this guide will be Macfibo Reloaded : The Complete Version For New Traders.
I need to clarify the word complete version though. What I meant by Complete is that it is the most recent version that I personally use both demo trading, paper trade, forward test and live trading (Ive used this on Live Trading for a particular trading account since 2013). Any system is a work-in-progress. You must not stop learning, you must not stop refining the system (that suits your trading objective ofcourse). Honestly, Ive had tested 13 different versions of Macfibo.. and this particular version is for me the best one Ive had tested over 500 trades and balanced (between day trader and swing trader).. SO FAR..
My objectives for sharing this system are two-folds : Sharing and Helping. I hope I can accomplish that with this system reveal. Happy Reading and May you all be Profitable.
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CHART AND TOOL SETUP
Timeframe : H4 Only *H1 and M15 trading for this particular version is still currently on testing phase
Currency Pairs : GBPJPY, GPBAUD, AUDUSD, EURUSD and GBPCHF *Other pairs like GBPUSD, AUDJPY, USDJPY, EURNZD, SP500, XAUUSD and OIL are still currently on testing phase
Indicators : 5 Exponential Moving Average (Soldier), 20 Simple Moving Average + 30 Simple Moving Average (as Mini Compass MA), 80 Simple Moving Average + 120 Simple Moving Average (as Compass MA), Fibonacci Retracement Tool (add 127.2 and 200.0 levels) *Alternatively download the template at the main page of the systems forum thread.
No candles are made invisible only for the purpose of showing the Moving Averages
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SYSTEM INTRODUCTION
There are THREE Valid Setups for MACFIBO RELOADED :
1. Compass Macfibo Signal 2. Mini-Compass Macfibo Signal 3. Counter-Trend Macfibo Signal
I will explain each APPLICABLE setups with the following sub-parts :
a- Setup Introduction
b- Entry and Exit
c- Macfibo Trade Management (Exit) : The whole idea of developing Macfibo Trade Management is to provide a trader an objective way in managing the trade so the trader able to lock some profits while the trade is still going BUT more importantly that the trader, more often than not, still ending up profitable even in a failed trade (price not hitting the target profit level) .
d- Filters
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SETUP 1 : COMPASS MACFIBO SIGNAL
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Compass Macfibo Signal A. Setup Introduction : This is a lot similar to the original Macfibo setup except it involves two focal Moving Averages (80SMA and 120SMA) which I like to call it as the Compass MA instead of one (20SMA). I call it as Compass MA because other mini-setups will be taken according to the direction of the breakout of the Compass MA. Its almost like a Moving Average Channel (two or more MAs made as one channel) breakout as well if you really think about it. Study the following images to understand what I mean (before we go through the entry setups etc). We enter a trade when price+5EMA breaks the Compass MA.
Illustration 1 : What is Compass MA Breakout
Illustration 2 : 80SMA and 120SMA forms the Compass MA (or Channel), regardless which SMA (80SMA or 120SMA) the price breaks the last as long as both MAS are broken
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Compass Macfibo Signal B. Entry and Exit (Both Long & Short) : Step 1 When 5EMA crossed above or below the Compass MA Step 2 Identify the candle that confirmed the upside or downside crossover Step 3 Pick the closing price and mark that as POINT A * (if confirming candle for Long Signal is Bearish Candle, Pick Open Price. If Confirming candle for Short Signal is Bullish Candle, Pick Close Price) Step 4 Identify the most recent significant Lowest or Highest Price and mark that as POINT B Step 5 Drag your Fibonacci Retracement Tool from Point A to Point B. Step 6 Mark TP at 200% level (study illustration left to right). Set Stop Loss at 61.8%. Step 7 Enter trade. Your trade will be exited automatically at 61.8% (for cut loss). Refer to Trade Management at page 7 for more information on Exits
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Compass Macfibo Signal C. Trade Management (Both Long & Short) :
I divide Macfibo Trade Management into two phases : a) Removing-Risk Management Phase One b) Removing-Risk Management Phase Two
Removing-Risk Management Phase One : As soon as you are in a trade, when as price hits 161.8% or roving along the zone, move your Stoploss to either Breakeven or 127.2%. I personally prefer to move it Breakeven but that is only me (0 loss is better than any Loss). This is actually the most difficult phases of the two because it is harder to decide wether to risk any amount of profit to NO PROFIT (breakeven)... its a psychological issue more than anything else ***This is where I also find it amazing that some traders prefer to lose a certain amount of loss than breaking even.
Removing-Risk Management Phase Two : This is certainly the phase that you really want to be into. I like to call this Phase Two as a Free Trade. Whatever you decide, you are still profitable and maintained a 2:1 Risk Reward Ratio. When price moves inside between TP zone and 177% (exactly calculated to 2:1 Risk Reward Ratio), move the Stoploss (either from Breakeven or 127.2%) to 177% level. Even if price reverses and hits this level even before the targeted 200%, you are still end up profitable in a very good 2:1 Risk Reward trade. It is all Piptastic! ***Unless you are not greedy like me, you probably already close this guide and give me the middle finger.
REMOVING-RISK MANAGEMENT IS STILL IN ONGOING TESTING AND STUDY. THIS CAN BE FURTHER DISCUSSED IN THE FORUM THREAD Page | 8
Compass Macfibo Signal D. Filters : Support and Resistance
If S/R Line blocks the 127.2 or 161.8 or any target profit 200%, then you either IGNORE this setup OR Simply set TP at the vary S/R Line
OR
You set Take Profit at the nearest profitable Fibo but only hold the trade (if price not hitting the TP) for 5 trading days upon entering the trade.
*Traders are not forced to apply this filtering technique. This shall be discussed further in the forum thread Page | 9
SETUP 2 : EXTENDED MACFIBO SIGNAL
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Extended Macfibo Signal A. Setup Introduction : You can say this is like old Macfibos Secondary Signal. Infact, the concept is exactly the same except a)I chose not to call it as Secondary Signal obviously b)It is very important part of Macfibo Reloaded (unlike in old Macfibo I regarded Secondary Signal as secondary) c) It doesnt use 8sma, but uses TWO Moving Averages (20SMA and 30SMA) which I call it as Mini-Compass MA.
The Mini-Compass will create some form of a channel (like Compass MA). For this particular setup (Extended Macfibo Signal), only one MA are required to be crossed. For a LONG Signal, the upper MA (doesnt matter if its 20SMA or 30SMA) is only required to be crossed (Refer to the chart below, the last crossover). For a SHORT Signal, the lower MA (doesnt matter if its 20SMA or 30SMA) is only required to be crossed.
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Extended Macfibo Signal B. Entry and Exit (Both Long & Short) :
Step 1 : Identify current Compass Macfibo Signal and plot its both Point A and Point B (Regardless if it was a profitable trade or not)
Step 2 : When 5EMA cross above&below Mini-Compas MA
Step 3 : Identify the candle that confirmed the upside or downside crossover
Step 4 Pick the closing price and mark that as the NEW POINT A * (if confirming candle for Long Signal is Bearish Candle, Pick Open Price. If Confirming candle for Short Signal is Bullish Candle, Pick Close Price)
Step 5 Drag your Fibonacci Retracement Tool from Point A to Point B (Compass Macfibo Signals Point B).
Step 6 Mark TP at 200% level. Set Stop Loss at 61.8%.
Step 7 Enter trade. Your trade will be exited automatically at 61.8% (for cut loss). Refer to Trade Management at page 13 for more information on Exits
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Extended Macfibo Signal Abnormal but Valid Signals
This setup will be treated as a Valid but Abnormal Extended Macfibo Signal. Normal Macfibo Trade Management applies
*There are more cases of weird MA crossovers, its too vast for this E- Book. We can discuss this further (when needed) in the forum. We just focus on the perfect setups for this guide.
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Extended Macfibo Signal C. Trade Management (Both Long & Short) :
I dont want to make it redundant (plus my fingers are cramping typing this guide). It has the similar concept as Compass Macfibo Signals Trade Management. PLEASE GO TO PAGE 7.
Simply put : Phase One : When price roves around 161.8% -> Move SL to BE or 127.2% Phase Two : When price closes inside between 200%-177%, Move SL to 177%
D. Filters : NONE
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SETUP 2 : COUNTER-TREND SIGNAL
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Counter-Trend Macfibo Signal A. Setup Introduction : If you regard Compass Macfibo Signal as a signal that potentially signifies an upcoming new Weekly Trend (even up to Months!) and Extended Macfibo Signal as a continuation wave of the current trend then it is only logical to say that Counter-Trend Macfibo signal is a potentially Correctional Wave within a developed/developing trend. We are going NOT only taking the real trending wave (upon Compass or Extended Macfibo signal) but we are taking its potentially retracement.
Pause a minute though, I say potentially because a) There is no way we can predict if a new wave will only be correctional/retracement b) There are no guessing in trading and c) It dont matter which wave it is.. as long as the setup rules have been fulfilled.. we will take the trade. Now lets move on to the Entry&Exit setup..
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Counter-Trend Macfibo Signal B. Entry and Exit (Both Long & Short) :
Step 1 When 5EMA crossed above or below the Mini-Compass MA but in the opposite of the current trend (For Long 5ema crossed above Mini-Compass MA whilst Price is under Compass MA, For Short 5ema crossed below Mini-Compass MA whilst Price is above Compass MA)
Step 2 Identify the candle that confirmed the upside or downside crossover
Step 3 Pick the closing price and mark that as POINT A * (if confirming candle for Long Signal is Bearish Candle, Pick Open Price. If Confirming candle for Short Signal is Bullish Candle, Pick Close Price) Step 4 Identify the most recent significant Lowest or Highest Price and mark that as POINT B
Step 5 Drag your Fibonacci Retracement Tool from Point A to Point B.
Step 6 Use the Crosshair tool and find a an intersection point between the candle that had been identified at Step 2 and the nearest MA of the Compass MA. Mark that as Point C
Step 7 Mark TP at 161.8 by default. If Point C blocks 161.8 then mark Point C as TP. Set SL at 61.8% (if TP is at 161.8%) or maintain 1:1 Risk Reward Ratio (if TP is at Point C)
Step 8 Enter trade. Your trade will be exited automatically at 61.8% (for cut loss). Refer to Trade Management at page 17 for more information on Exits
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Counter Trend Macfibo Signal C. Trade Management (Both Long & Short) : NONE
D. Filters : This is quite discretionary. Basically if the space between PT A to PT C is like 10 or 15 pips, best to ignore the setup.
FINAL WORDS
I hope this system will be beneficial to you and please ask anything in the forum. May you always be Piptastically Profitable.. (and any mistakes in the guide please let me know)