This thread is for those who wish to discuss, in real-time, the Net Trap Forex Trading system.

PLEASE REMEMBER: All posts we consider inappropriate, for whatever reason, will be deleted retrospectively and your membership will be terminated on a 3 strikes and out basis.

We look forward to making a success of this Trading Room.

We thought it would be appropriate, for reference, to kick off with our mechanical approach definition and the IG Index Advanced Charts code we used to use for trading Net Trap.

The SystemsForTraders Net Trap Mechanical Rule Base

These rules are based on the original Net Trap system and they meant that we could trade the system 100% mechanically each and every day. It was as close a solution we could get to based on the resources we had available at the time. We were generally happy with the indicator. About a 90% match rate with official calls, days when it didn't agree with the official call we found were typically debatable in any case.

Note: U - Up, D - Down, F - Flat, it relates to the 40 Moving Average

The basis of our Mechanical Rule Base is that we must have at least 3 X’s (where X is U or D) to indicate a trend, with a majority of at least 2 over the opposing trend. This means we are looking for the following scenarios; at least 3:1, 4:2, 5:3, 6:4 with no more than 2 consecutives X’s in the opposite direction (as per Net Trap rules).

Thus,

- UUFFFFDFFF, DFFFFDFFUF are not valid trades – Less than 3 X’s in the same direction to support a trend.
- Any trade with UU or DD in the sequence (as per Net Trap rules) against the main trend invalidates the trade, e.g. UUUUFFDDFF and DDDDDFFUUD are invalid trades.
- UUFDUUFDFD, DDUFUDUDDU = 4:3 & 5:4 Ratios so these are invalid trades.
- UUUFFFFFFD is valid – 3:1 or greater
- UUUUFFDFDF is valid – 4:2 or greater
- DDDFDFUFUD is valid – 5:3 or greater
- DDUDDUDUDU is valid – 6:4

We also decided that we would take 2:0 or greater too, meaning UFUFFFFFFF is valid too.

This is the basis on how we traded the Net Trap system 100% mechanically.

The SystemsForTraders IG Index Advanced Charts Code

This is the code which can be used on IG Index (Advanced) Charts only. With this indicator in place and using the rule base above we were able to trade Net Trap 100% mechanically. As noted, our decision to trade or not was about 90% in-line with the official results.

UDFIndicator = 0
//
IF Time >= 040000 AND Time <= 061500 Then
UDFIndicator = 2
If ROUND(Average[40](Close[1])) > ROUND(Average[40](Close)) Then
UDFIndicator = 1
EndIf
If ROUND(Average[40](Close[1])) < ROUND(Average[40](Close)) Then
UDFIndicator = 3
EndIf
Endif
//
RETURN UDFIndicator AS "UDF Indicator"

We then change the Indicator to be a "Point" - That way we can clearly see U (value = 3) F (value = 2) D (value = 1) Not applicable (value = 0)


We look forward to this thread being a success.

Looking good, thanks

Thanks guys. I'm in. The Summary is P 3 in my manual. Just as a point of interest, I spent yesterday going through every trading day since 9 August (would have gone back further but thats as far back as my IG quick charts go) and the difference in value of the MA from the beginning to the end of the period was almost irrelevant. In fact a difference of 1 was profitable (+6) and a difference of 27 was a loser (-8). I think once you've established if the trend is up or down the actual FFUs etc dont seem to have much bearing on the end result. Also the most profitable settings were 40 limit with 35 stop. This was on IG only - as one of the retracement days was 34 I guess a 40 stop would be more sensible. Interestingly, if you change the 50/30 to 50/35 it would have been profitable over the last 3 weeks. I am of course aware that the market changes all of the time and that the above may not work in the future.

The above used a set and forget approach - no moving of stops or trying to anticipate when the market was turning. Just closing manually at 8.30....but no IG slippage taken into account.

Hi. I'm in too. The variant I was talking about in the 'open' forum today, which has a much better record than all others is the one they call HNT (half net trap) 40, i.e. limit is 25 pips and stop loss is 40. I've switched to this variant myself, plus I do another smaller trade with 45 limit and 40 stop. I no longer run vanilla NT.

I tend to use the basic IG chart set to mid price and then set my entry to 2 pips above the high or below the close as appropriate. I've been live trading since 29 Jun with a break 26 Jul - 8 Aug and I'm 167 points up at the moment, hope it contnues.

I have tried a variation to FNT where if I am able to at around 8:25 ish and the trade is in profit I will take half my stake out and run the rest on a 10 pip trailing stop. It has worked once and I got 2.5 points extra (not much but if it does take off...).

One question, how do you put the code into the advanced charts. I tried but didn't get any u,f or d's. I'm ashamed to say I work in IT so should be comfortable with coding but I just can' make head or tail of the advanced charts manual.

I have been trading NT just this month august and gained 29 pips ,I had 9 winning trades and 8 losing trades ,of the 9 winning trades 6 had a MA difference =>5 ,of the 8 losing trades 6 had a MA difference of=<4,
So MA pip difference seems to have a slight effect

Good morning. Long today. Interesting discussions going on, I shall invest some time in looking into these variations - every little bit helps...

Morning, I have my order in for a long trade. I hope Roberto is right I have the MA as around 9 today so could be good.

Long orders for me too at 90