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Rich Lazy Channel Trader (MT4 Only) One of the most famous early traders was Larry Williams who turned $10,000 into $1,100,000 in just 12 months! Yes, everything was easier in the early days and that was trading Stocks, not Forex but it is still a remarkable feat. The method he used became a legend when it was used by the Turtle Traders who were a group of ordinary people who were taught to become successful traders using this method. Interestingly, he advocated risking 25% per trade! Here, we can safely risk 10% to make a 15-25% profit per trade.We know that it involved buying at the low and selling at the high - probably the 40 day high and low, but the problem is that this can only be known after the retrace. A 40 day high or low is OK when we have 100 Stocks but the Rich Lazy Channel Trader indicator shows a 21 hour high and low on the 15 Minute chart (everything is scaled down) and we just trade two instruments. Gauging the retrace is done by the colour change of the tried and tested Rich Lazy Trendline and/or the Buy/Sell arrows as shown below.
The High and Low is determined by the upper and low channel lines so when the price bounces off this and the Trendline colour changes, we open the trade. We trade just Gold and the GBP/JPY as shown above so we can easily pocket 50 pips per trade with a relatively small 15 pip Stop Loss. Of course, there are a few rules to follow which improve results but the basic principle is a scaled down version of Turtle Trading that works today on Forex. Signal 1 is outside trading hours. At 2 the price bounces off the lower channel and we would open a buy when the Trendline changes colour on 3. We would also also trade on the Buy arrow 3 since it is very close to the lower channel. Lastly, we trade on arrow signals that straddle the centre line as shown at 4. So here we had two 50 pip winners in the morning. In fact, we average 3 trades a day with an over 80% win rate.
As usual, it includes our Trade Opener with the one click Buy and Sell buttons which automatically open the trade with the correct TP and SL plus an optional Trailing Stop. Above, we got 2 trades and 100 pips in a few hours but even one trade a day is good enough to make big money. This wasn't cherry picked but was the actual chart close to the time of writing. That said, we do have days when things go sideways and the 50 pips is not reached - but we can usually close without a loss. It's also perfect for use with Prop Trading either to provide the signals to trade on Dxtrade or cTrader or ideally used on an MT4 account with our Prop Firm of Choice, Crypto Fund Trader. The 50 pips represents 1-1.5% profit (depending on instrument) on a Prop Firm account, which is huge when you consider we average more than one trade a day... Coming Sat 27th April Will be part of the 2024 Rich Lazy Trader |
