Trade by Trade: EUR/USD.

Entry & Exits Only.
For these initial trades we are purely looking at the initial ENTRY and the EXIT via the Trailing or Entry Stops. For ease of distinction you will notice that the Count Back Entry Lines for LONG trades are in a light blue, whilst for the SHORT trades are in a purple.
Please refer to the charts and corresponding trade details following.





TRADE 1 (T1):
• The market nicely rises and closes the day above both the Count Back Entry Line and 21 Day Moving Average, giving a valid entry ‘At Market’ on open of the day following, (Entry at 1.2497).
• The market continues in the trades favour for 6 days before a slight pull back with an OUTSIDE bar. As it is an OUTSIDE bar the trader is required to immediately move up the Trailing Stop Loss underneath the low of that bar (daily swing low), as you can see indicated by the red dotted line.
• Again the market advances into our favour before making a second daily swing low (3 DOWN bars), and as soon as that is confirmed with an up bar, the Trailing Stop Loss is immediately moved up underneath the daily swing low.
• A third daily swing low is then created before finally falling just below the level of the daily swing low closing out the trade at 1.2889, finalising the trade at a profit of 392 pips.
• The final exit bar on T1 did slightly fall below the 21 Day MA and close below, however did not reach the Count Back Entry Line (purple line further below).
• As the price fell away nicely from ‘Point A’ down to the low of the bar where T1 exited this gives a new anchor point for a Long Count Back Entry line allowing the trader now to watch for two potential entries – either a Short entry should the market continue to fall and close below the SHORT Count Back Entry Line or rise up and close above the LONG Count Back Entry Line and 21 Day Moving Average.

TRADE 2 (T2):
• The market quickly rose up the next day closing above the 21 Day MA and is already above the Count Back Entry Line, giving a new entry at 1.3156.
• After entry the market continues up making volatile sideways movements as it progresses in time. As soon as the market creates a daily swing low above or very close to the entry price you must immediately bring up the Trailing Stop Loss underneath the daily swing low. Subsequently the trade was stopped out as the market fell below the previous daily swing low, closing at 1.3180 giving a profit of 24 pips over 20 days.
• You are now looking for a new entry in either a long or a short direction, so you place your Count Back Entry Lines on the previous high for your potential SHORT trade and the DOWN bar, being the current low of the pull back for a potential long re-entry.
• The market continues up above both the 21 Day MA and moves above the LONG Count Back Entry Line but does not close above, before the market plummets down, saving us from entering a losing position.

TRADE 3 (T3):
• The large DOWN bar falls quickly through the SHORT Count Back Entry Line and the 21 Day MA, but closes below the 100% Line not fulfilling the ENTRY RULE CRITERIAS enabling another entry. Which in hindsight is good as the market rebounded strongly soon after.



TRADE 4 (T4):
1. The market nicely rallies up and fulfils the entry criteria for a LONG trade with 1 daily close above both the Count Back Entry Line and the 21 Day Moving Average, entering at 1.1126.
2. The market nicely rallies onward and upward creating many swing lows along the way, where you are to move your Trailing Stop Loss to once the swing low is created above your entry price and as soon as each one is confirmed, or immediately without confirmation if the bar is an OUTSIDE bar (blue).
3. The trade finally is stopped out up towards the top on an OUTSIDE bar (blue) at 1.9558, a profit of 832 pips.

TRADE 5 (T5):
1. Once T4 is stopped out you will need to look for your next entry.
2. The market continues to fall away for a few more days before rallying up, but does not give us a significant pull back where it has CROSSED the 21 Day Moving Average temporarily (see REVERSAL RULES) to validate looking for a LONG entry. Therefore the Count Back Entry Line has only been drawn from the very high in
attempt to enter SHORT.
3. Finally the market does reverse with a 1 daily close below both the Count Back Entry Line and the 21 Day Moving Average. Entering at 1.881.
4. The market falls down whilst making lower daily swing highs where you are to move your Trailing Stop Loss to once the swing high has moved below your entry price and is confirmed with a DOWN bar.
5. The market finally exits at the Trailing Stop Loss at 1.1657 with a 224 pip profit.

TRADE 6:
1. Trade 6 entered after a pull back in the market during its decline where it slightly moved above the 21 Day Moving
Average allowing a new Count Back Entry Line to be anchored off the swing high, enabling a SHORT entry for
T6, which was short lived as it soon after was stopped out at the swing high, 12 pips from the entry price –
making slightly a little more profitable than break even once considering the spread in and out.
TRADE 7:
1. The day following that T6 was stopped out, at its Trailing Stop Level, the market rose and closed above the 21
Day Moving Average looking to take a Long position, however it was already over the Count Back 100% line,
invalidating the trade.
TRADE 8:
1. The rally was short lived then started to fall giving an anchor for a SHORT trade Count Back Entry Line. After a
few days the market closed below the Count Back Entry Line then finally also below 21 Day Moving Average.
2. The entry was at 1.1631, with a slight rally following before making its decent. The trailing stop loss was moved
down above each daily swing high once they were lower than the entry price. The final exit was at 1.1070 once
the market moved above an OUTSIDE bar. The final profit was 561 pips.

Trade Entries:
Below is a table outlining each trade by trade and their subsequent profit calculations, per lot of 100,000, 200,000 or 300,000 currency units.

Entry Stop Loss (refer to following chart)

TRADE 4 (T4): The Entry Stop Loss is calculated the same way but just opposite to the Entry Count Back Line. In the image below you will see that when calculating out the Entry Stop Loss from the SIGNAL bar, the Stop Loss is lower than the anchor point for the Count Back Entry Line. This does not happen often, but if it does move the stop up to below the low of the Entry Count Back Line Anchor (red line in images).

TRADE 5 (T5): Again the Entry Stop Loss is calculated being upside-down to the Count Back Line.


Emergency Exit

The following chart shows the emergency exit in action. As you can see it should be used when the market has given 3 consecutive lower lows (Long Positions), and at the same time has produced 1 close below the 21 Day Moving Average. You are not to wait for the market to either hit your Entry Stop Loss or your Trailing Stop Loss.

TRADE 1: The trader enters the market Long as all entry criteria are met at position 1. Shortly after the market reverses and heads south down towards the Entry Stop Loss. On the way down the market closes 1 daily close below the 21 Day Moving Average. At the same time the trader observes that there have also been 3 consecutive lower lows (1 Down bar (red), 1 Outside bar (blue), and 1 more Down bar (red)), so immediately closes out the position ‘At Market’. The market continues to fall through the Entry Stop Loss – a saving of 47 pips, or $470 per every 100,000 standard lot.