Where Reality And Magic Merge Into One

Congratulations, if you are reading this thread, you will become a millionaire in the next 3-6 months.

Yeah yeah.. I know what you are thinking. You are thinking that this Merlin guy has lost all his marbles but bear with me to the end of this post and I promise you, your head will be blown and you will believe more and more that this idea is perfectly logical and doable.

First, let's look at this chart.


Now I know that it can be a little overwhelming at first but let's take some time and look at all the different areas of the chart.

Here is it in more details...


The first thing we see at the top is the "doubling row". We can see that it goes from 1 to 18 and this is how we will get rich, by doubling our money 18 times in a row.

Row #3 is the "Contracts row". This is where you place your bets so to speak and buy or sell Futures contracts to profit from.

Row 5, 6 and 7 are the B (Bet), P (Profit) and T (Total) row where in column B for example, we buy 1 Micro contract at $50 each, make a profit of $50 by making 10 pts on the trading chart (more to come on that) and end up the day with a total of $100 in the bank, making it our 1st doubling. 1 down, 17 more to go.

With the Micro Russell contract, each point on the trading chart is worth $5 so if you bet in the right direction and make 10 pts, you end up with a $50 profit, doubling your initial $50 investment. By taking that initial $50 and adding the $50 profit of the prior day, you can now with your $100, buy 2 Micro contracts and if you also make 10 pts in the right direction, you will double those 2 contracts, making it doubling #2 and so on.

Now you may think, how will we be able to make 10 pts on the trading chart to double our money?

Well, if you look at this chart below, you will see that I was able to do those 18 doubling (28 in fact) in a row during this week alone on 2 good trading days, March 13 and 15.

Here's those 2 charts...

The pink dots is when the price goes back down and where we make our 10 pts on the way down the chart. The green dots is when the price goes back up and where we make our 10 pts on the way up the chart. That's why the system is called Peak 2 Peak because we trade from 1 peak at the top of the channel to the other peak on the bottom of the channel.



Basically, the trading system goes like this...


First, you can see on the charts that we have 1 primary/main channel with 2 colors, a dark red one that is present when the price goes down more than 15 pts and a dark blue one that is present when the price goes up more than 15 pts.

When the price goes up and pushes the ceiling of the channel, the channel turns dark blue and when the price crashes and pushes down the bottom of the channel, the whole channel turns red.

Next we have a secondary channel that is smaller inside the big one. This channel has 4 different colors, 2 on the dark red one (light red and gray-red) and 2 on the dark blue one (light blue and gray-blue).

When the price is going down we have as I said, the main channel is turning dark red but the price bars in white are also in the secondary channel and this one turns bright red when the price is going down in the big dark red channel but when it goes back up, the secondary bright red channel turns gray-red and this is usually the turning point where the price stop going down and starts moving up toward the top of the dark red channel, turning it into a dark blue channel.

Same thing when it goes down. The price stops going up, the secondary channel goes from light blue to gray-blue and moves down towards the bottom of the dark blue main channel, turning it dark red.

Everybody follows me so far?

YEAH BABY !!!

VirgoShowgirl wrote: ↑Wed Apr 05, 2023 10:01 am YEAH BABY !!!

Good!

So basically it goes like this...

If the price goes up in the dark red main channel, the price bars go from a light red secondary channel to a gray-red channel then enters the dark blue channel when the ceiling is broken. Then the price continue their way up into a light blue channel and when the up move is done, it turns into a gray-blue channel and move down and down and down...all the way to the bottom of the main channel, turning it into a dark red channel and the cycle starts again.

Merlin, I would love to continue the discussion about losses. If we get 5-6 failed entries in a row (I think there were 4 in one of the screenshots + if I remember correctly you forward demo tested the system 1-2 months ago and got wiped out on the first day because of hitting a row of bad entries), at 1-2 pts loss per entry, we can lose 10 pts. and we are back to square 1, right? (at least until we get to the 11th doubling).
Any ideas how you would fix the failed entries? In most cases, people would add more indicators and confirmations, slowing down the trading and getting less entries overall. Curious what your approach would be.

AgentSmith wrote: ↑Wed Apr 05, 2023 10:25 am Any ideas how you would fix the failed entries?

Glad you bring this up because that was the next post I was about to do.

You are right, when the price goes from light blue to gray-blue but fail to go down into the red channel, we have failed entries and that is the main focus of my past few months.

There are BIIIIGG move that pays 30, 50 even 100 pts so there is NO DOUBTS in my mind that this system pays like hell and we will make many more 10 pt wins than 1-2 pt losses but that doesn't mean that we have to let those losses be.

Here's the zoomed in version of those 4 losses that you talked about in the March 13 trading chart. You can see that we have Short entries (pink dots) but have green dots just above them. That's because the price reversed on us and wants to go back up into a light blue channel...So... we reverse our trades.

Yes we lose a point or so in the process but it's no big deal. Remember, the channel is 15 pts high and that's if the channel stops at 15 pts. In most cases, the price move don't stop at 15 pts it can drop 20, 30 pts or more.



For example, take a look below at what followed this down move after we found the last good entry at the top of the dark blue channel. The entry price was around 1,824 and it went down all the way to 1,794 before turning around. That's a 30 pt gain. That pays A LOT of 1-2 pt losses.

It also did a failed entry in the middle but we enter Long and then Short almost at the same price making it a very small loss.

Another option to do here regarding failed entries is to exit your trade when the price reverses on you and find a better entry point.

In this case here we have a failed entry because as soon as we leave the light blue channel and enter into the gray-blue channel and we enter Short, the price reverse on us so we stop but as soon as it makes a peak a few bars up, we re-enter our Short position.

Okay later on we get stopped out again when it goes back into a light blue channel but what we can do here is reverse our trade and go Long (green dot) and let it ride higher. Who knows, maybe it will go 10,20 or 100 pts higher so....we follow.

When it wants to go down and exit the light blue channel, we enter Short again and follow her on the down side. In this case it worked because she didn't go back up so it was an easy 30 pts right there.

Here we go !

wojt864 wrote: ↑Wed Apr 05, 2023 11:51 am Here we go !

Like it?

It's good but there are a few tweaks needed. I'd say it's 95% completed.

Here's another example...

We make 10-15 pts when the price goes from 1 channel to the next but sometimes it gets stuck in the same channel for many many pts, 70+ pts so far and its not over.

So technically speaking, we had 2 peak2peaks, 1 up from red to blue and 1 back down to the red zone but in fact we made A LOT more than 20 pts here because that 2nd peak2peak was a looooooong 70+ pts ride.

So using 10K to begin the day with, we would have made about $80,000 in profit today minus some losses here and there and the broker commissions too but still, even if we lost 10 pts in overall losses, a $70,000 payday would be awesome don't you agree?

Today was a 3 peak2peak day. Not bad.

Tomorrow night, I will compile the total number of peak2peaks we had this week.

It's not 20+ but I think it's above 10 so starting at $10K each day, this would mean that it's another $100,000 week and that would make us millionaires in about 10 weeks like I talk in another thread.

Now if I can find better ways to reduce the small losses that would be nice and I would get in with real money very soon.