Thread: ICWR Trading System

Hello,

Have any of you utilized this trading strategy. I've been using a little bit and it seems to be a decent strategy so far. I haven't completed any backtesting though and have only been using the strategy on a test account.

My questions to those users of the system (if there any).

1. When do I re-draw the fibonacci levels for a new wave? If I'm in a trade and the trade went up 40 pips but then is back in my active waves retracement zone and I then draw the new active wave, the signals would tell me to close the trade then because the current price will be below the 0.250 level. But in my active wave that I used to enter the trade, the trade would still be in good condition because it is still just in the retracement zone.

2. I enter a long trade on an upward wave, it goes up 30 pips, then retraces back to retracement zone. Then the trade goes back through the 0.750 level. Is this another signal to add to my position?

I hope this is clear.

Thanks for the help.

Hi,

Yes, I trade the ICWR system and really like it.

In terms of your questions:

1. When do I re-draw the fibonacci levels for a new wave?

If the trade went up 40 pips, that is now your active wave and you totally forget about the wave that got you into the trade. What the fibs are doing is keeping you in the trade as long as the short-term trend appears intact. As soon as a candle is fully below the .25 level of the active wave, then you are out.

Let's say you are long the EU. The only time you need to draw a new fib for a new 40 pip wave is when the trade is going in your direction - i.e. up. If it is NOT going your way, the you will eventually have a candle fully below the .25 fib (and will close out of the trade) well before you would need to draw another fib in the opposite direction.

So, either you draw a fib further north (which means you are in profit) or you close out of the trade (because a candle was fully below .25 level), or it hits your 50 pip stop loss.

2. I enter a long trade on an upward wave, it goes up 30 pips, then retraces back to retracement zone. Then the trade goes back through the 0.750 level. Is this another signal to add to my position?

I don't trade like that, but you COULD scale-in this way. Just make sure that it is within your risk tolerance and account size.

I hope this helps. Let me know if you have any other questions.

-Scott