Early Setup Precognition Trade Assistant · Forex Precog Early Setup Precognition Trade Assistant...

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Forex Precog Early Setup Precognition Trade Assistant PRESENTS Early Setup Precognition Trade Assistant By Michael Nurok

Transcript of Early Setup Precognition Trade Assistant · Forex Precog Early Setup Precognition Trade Assistant...

Page 1: Early Setup Precognition Trade Assistant · Forex Precog Early Setup Precognition Trade Assistant INTRODUCTION I developed the Early Setup Precognition (ESP) Trade Assistant so it

Forex Precog Early Setup Precognition Trade Assistant

PRESENTS

Early Setup

Precognition Trade Assistant

By Michael Nurok

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RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT

Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any financial market.

The contents of this material are for general information and educational purposes only [contents shall also mean the website http://www.forexprecog.com or http://www.forexprecog.net or any website (“the sites”) the content is hosted on, and any email correspondence or newsletters or postings related to such website]. Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using the product, ideas and techniques. We do not purport this to be a “get rich scheme.”

Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy.

No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed in this report or on http://www.forexprecog.com or on the sites. Past performance is not indicative of future results.

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Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program and method.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading.

For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are material points that can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results.

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INTRODUCTION

I developed the Early Setup Precognition (ESP) Trade Assistant so it could help with

your advanced use of the Forex Precog trading system.

ESP enables a trader to enter trades according to the Precog Trend Trade and Swing

Trade rules.

It also manages the trades according to your settings, totally automatically. All you

need to do is review each trade when the Trade Assistant alerts you to a potential

trade setup opportunity. It frees you up to do other things while you are trading,

yet does not put you at any more risk than if you were staring at your charts for

hours.

The Trade Assistant works in harmony with the Target Entry Elevator Indicator and

filters out all the trades where price is at a level which is considered too risky to

trade.

By using the Trade Assistant as an experienced Precog Trader, you are likely to see

your profits build as you focus on high probability trades and have them completely

managed for you.

As always, my hope is that you take this information with this invaluable trading

resource and apply it to your Precog trading so it can positively contribute to your

overall results.

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THE ESP TRADE ASSISTANT

How should you take Precog trades?

Manually, with or without the Target Entry Elevator?

Or;

Semi-Automatically, using the Early Setup Precognition Trade Assistant?

Now you have a choice of whether to trade completely manually, or with the Target

Entry Elevator for alerts, or semi-automatically with the Trade Assistant that not

only alerts you to trades but executes the trades and manages your positions

throughout the lifecycle of the trade.

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TRADING WITH EARLY SETUP PRECOGNITION

What is the Early Setup Precognition Trade Assistant?

It is the software that;

(1) Provides popup alerts with trade execution within your Metatrader

platform for all valid Trend Trades and Swing Trades. This alert will be

displayed on top of any software or window you are running on your

computer.

(2) Manages your position or split positions throughout the trade lifecycle

implementing all your profit-locking moves and the trailing you have

set in place

(3) Displays buy/sell arrows for valid trades and displays the Too Far and

Too Close filters on new Trend Trades

(4) Provides robust money management, including compounding

Trading with the ESP is the final stage of trading the Forex Precog system. I trust

that you have gained real trading experience with using the system manually, and

therefore, you can now trade with the semi-automatic features of the Trade

Assistant, being able to closely and accurately monitor all pairs on whatever

timeframe you are trading, and manage the trades as they are reviewed and

executed.

The ESP Trade Assistant will only display alerts and execute Trend Trades on the

1st bar after both the Ribbon and Predictor have changed colours. If not all

indicators are valid on that bar, it will not alert for a trade setup, even if the very

next bar generates a scenario where all indicators are valid. You are still free to

execute trades manually but the ESP will not alert you again until the next

opportunity occurs on the pair and timeframe it is installed on.

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TRADE SETUP POPUP ALERT

When a valid Trend Trade or Swing Trade occurs, you will get a popup alert on

your Metatrader platform. It will appear above any program or window you are

currently on so you can be assured you will not miss any potential setup.

The following is an example of the popup alert.

In this alert, you will see the following;

The name of the TA creating the alert; the Precog ESP Trade Alert

The direction of the trade; SELL or BUY

The pair; in this case, the EURGBP

The timeframe; in this case, the M15 (15 minute)

The time of the alert

The position including split order

Yes/No command to place the order

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If you have multiple trade setups simultaneously, you will get a separate alert box

for each setup, such as this;

You have the opportunity to review each trade setup on its chart before executing

the trade. You can also move each alert box to wherever you want so they are out

of the way while you review the chart.

In some cases, you may have 3, 5, or 10+ alert boxes open, depending on how

many alerts are issued. You so have quite a bit of time before executing the trade

so there is no need to rush your decision.

Once the position is executed, the trade(s) will be managed automatically as per

your set parameters.

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ON-CHART DISPLAY

Once attached to your chart, you will see the ESP on-chart display on the right

hand side of the chart, as follows;

In this on-chart display, you will see the following;

A green or red circle (on or off) next to Trend Trading to confirm the status

of Trend Trading

A green or red circle (on or off) next to Swing Trading to confirm the status

of Swing Trading

Either “Conservative” or “Aggressive” depending on whether you have

selected to be alerted to trade either conservative or aggressive trade

types

Management settings of either a single order or two orders, depending on

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whether you executed 1 or 2 orders. Settings include;

o (1) Initial Stop

o (2) Main Target

o (3) Target 1

o (4) Profit Lock 1

o (5) Target 2

o (6) Profit Lock 2

o (7) Target 3

o (8) Trail Type

o (9) Trail By

The Searching for Trades / PIPS Counter window. When there is no trade

active, you will see the progress bar. When there is an active trade, you will

see the amount of pips the trade is in profit or in loss.

The pair that you are trading

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TA SETTINGS

You can adjust all settings of the Trade Assistant.

Either; (a) click on smiley face at the top-right of the chart, or (b) right-click

anywhere on the chart, hover over Expert Advisors, then click Properties

You will get this window popup on your chart.

Under Authentication Settings; enter your email in the Email field and enter your

Clickbank Receipt number in the ClickBankReceipt field.

Note: please use the email you used when ordering. If you do not have a

Clickbank Receipt number, contact support on [email protected]

The first section after Authentication Settings, is Money Management. Within this

section, you can set your lot size to use in the “Lots” field. Whatever the value is

in the Lots field is the lot size that will be used. For example, is you set it to 0.5,

the lot size for the executed trade will be 0.5 lots. You can also set the minimum

and maximum lot sizes to use by the Trade Assistant.

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The next section is Split Order. If you set the “SplitOrder” field to “false”, the

Trade Assistant will execute 1 trade. If you set the “SplitOrder” field to “true”, the

Trade Assistant will execute 2 trades and split the trades based on the

“SplitPercentage” field. A value of “50” will split the trades in half. For example,

the “lots” field with a value of “0.5” will execute 2 trades at 0.25 lots each.

The “SplitPercentage” field relates to the 1st position. For example, a value of “70”

will split 2 trades 70/30 (70% for the 1st position and 30% for the 2nd position).

Conversely, a value of “30” will split 2 trades 30/70 (30% for the 1st position and

70% for the 2nd position). You can adjust the Split Percentage to any value you

wish.

The next section is the Compound Trading section.

Leave “UseMoneyManagement” as “false” if you do not wish to use this feature. If

you set it to “true”, then the lot sizes will be determined by “TradeSizePercent”

and “BaseOnSL” rather than the “Lots” field.

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The “TradeSizePercent” field is the field that will determine the size of the lots

used based on a percentage of your account. If you set “BaseOnSL” as “true”,

then the lot size will be determined as a percentage of your account as per

“TradeSizePercent” but also based on the stop loss size. In other words, the lot

size will be smaller on a bigger stop and bigger on a smaller stop.

To start with, it’s easiest to use the “Lots” field and I personally use the “Lots”

field for control of the lot sizes used.

The next section is the Trend Settings. This section is identical to Trend Settings

in the Target Entry Elevator Indicator.

Leave Trade Trends as the default “true”. If you want the popup alerts, leave

“AlertTrends” on “true” otherwise change it to “false”.

Adjust the field “TooFarFromRibbon” to the number of pips from the Ribbon you

want the trade to be considered as a valid setup. If the price falls beyond this

value, the trade setup will not be alerted.

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For example, if you enter 20; the trade will only be considered valid and alert you

if the price is no further than 20 pips from the point of the Ribbon twist.

Naturally, the bigger the timeframe, the higher the value should be, and

conversely, the smaller the timeframe, the smaller the value should be. That is;

20 pips may be reasonable for the 5M or 15M but not possibly big enough for a 1

hour or 4 hour chart. If you want to keep your options open, set it to a big pip

value like 100 or 150.

As well, you should consider the pair being traded, as for example, 20 pips may

be reasonable for a EURUSD 15M chart but not enough for a Yen cross like the

EURJPY or a cross like the EURAUD.

Adjust the field “TooCloseToRibbon” to the number of pips from the Ribbon that

the price must at least be, to be considered as a valid setup.

As the Precog rules state, it must be at least equal to the Ribbon (ie; 0.0)

however you may want to force the trade setup to only be considered if it is at

least 1 pip or 2 pips or 5 pips away from the Ribbon.

If the price falls closer to the Ribbon than this value, the trade setup will not be

alerted. For example, if you enter 5; the trade will only be considered valid and

alert you if the price is at least 5 pips away from the Ribbon. If you want to keep

your options open, then leave the value as 0.0 or 1.0 to catch as many setup

alerts as possible.

You can choose to display the Too Far & Too Close variables by leaving the

settings as “true” or you can individually disable the display of these variables by

changing the fields to “false”. You can choose the colour to display these

indicators on your chart as you wish.

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In the Trading Style section, leave the “ConservativeTrading” field as “true” if you

only want to be alerted of conservative style trade setups. If you want to get

alerts for aggressive style trades, that also include all conservative style trade

setups, change the “ConservativeTrading” field to “false”.

The following displays the Higher Time Frame settings.

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You can leave these settings as the defaults however if you want to change the

Higher Time Frames, you can adjust the HigherTF1, HigherTF2 and HigherTF3

fields to any of the timeframes as long as the shortest timeframe is placed in #1

and they are listed from shortest to longest. You should also change the values on

the ForexPrecogHTF indicator to the same values if you choose to change the HTF

values.

The values to use in the fields are;

M15 (15 minute)

M30 (30 minute)

H1 (1 hour)

H4 (4 hour)

D1 (daily)

W1 (weekly)

M (monthly)

You can also adjust the values in the fields; PipRequirementHTF1,

PipRequirementHTF2 and PipRequirementHTF3 if you want to be more certain of a

trend being in place.

The bigger the number (pip value), the more “in trend” the higher timeframe is.

However, I would not suggest changing this much. You can increase the D1 value

from 3 to 5 or even 10. You can increase the W1 value from 5 to 10, 15 or even

20. If you use the monthly Higher Time Frame, then I suggest at least 10 for the

value but you could increase that to 15, 20 or even 30.

These values are specific to the trend in each time frame and if the price falls

within these values, you will notice the blue bidirectional arrows being displayed

for the trend on that specific time frame.

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If you’re not sure, leave the values as they are, as these are the defaults I

typically use.

Following is a screenshot of the next sections that are the Swing Settings, Sunday

Trading and Display Arrows sections.

If you want to be alerted of Swing Trades, leave the “TradeSwingWithinTrend”

field as “true”, otherwise change it to “false”.

The “MinSwingBarsSWT” denotes how many preceding MACD histogram bars

need to be contrary to the signal bar colour. Leave it as the default “2” unless you

want to reduce it to “1” or increase it to however many histogram bars you want

to see before a Swing Trade is alerted.

The “MoveTooBigPipsSWT” field represents the size (from open to close) of the

swing bar on the chart. If you want no maximum cap, then leave it as the default

“0” however if you don’t want to be alerted to Swing Trades that are over a

certain pip size, then change the field to this value.

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For example, if you don’t want to consider Swing Trades where the Swing Trade

bar is over 50 pips, then change the field to “50” and so on.

Leave the “AlertSwingWithinTrend” field to “true” unless you don’t want Swing

Trades to alert you, in which case, you should change it to “false”.

Leave the “TradeSunday” field as “false” if you don’t want alerts on Sunday

however if you do want alerts on Sunday, change the “TradeSunday” field to

“true”.

In the Display Arrows section, leave the fields “ShowBuys” and “ShowSells” as

“true” if you want to see all arrows. If you only want to see Buy arrows, then

change “ShowSells” to false. Conversely, if you only want to see Sell arrows, then

change “ShowBuys” to “false”. This is handy if you are only interested in going

buying a pair, or conversely, if you are only interested in selling a pair.

The next section is the Take Profit and Stop Loss section, as following.

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The “TakeProfit” field is the ultimate target that you are targeting for the 1st

position or sole position. It is displayed on the on-chart display as “Main Target”.

The “SplitTP” field is the ultimate target that you are targeting for the 2nd

position if you are trading 2 positions. It is displayed on the on-chart display as

“Main Target”.

Set the “UseTP_SL_Ratios” to “false” if you want to use the “TakeProfit” and

“SplitTP” fields, however if you want to use dynamically generated Main Targets,

then set “UseTP_SL_Ratios” to “true”.

The “MainTP_SL_Ratio” is the reward-to-risk ratio for the 1st or sole position. The

value is the multiplier of the amount of pips used for the stop loss. For example, if

the stop loss is 20 pips, then a value of 10 equates to 20 x 10 = 200 pips. This

will be displayed as the Main Target for the 1st position if “UseTP_SL_Ratios” is set

to “true”.

The “SplitTP_SL_Ratio” is the reward-to-risk ratio for the 2nd position. The value is

the multiplier of the amount of pips used for the stop loss. For example, if the

stop loss is 20 pips, then a value of 25 equates to 20 x 25 = 500 pips. This will be

displayed as the Main Target for the 2nd position if “UseTP_SL_Ratios” is set to

“true”.

The “StopLoss” field is the Initial Stop Loss that is set for the 1st position or sole

position. It is displayed on the on-chart display as “Initial Stop”.

The “SplitSL” field is the Initial Stop Loss that is set for the 2nd position. It is

displayed on the on-chart display as “Initial Stop”.

If the “UseSlowMAForInitialStop” is “false”, then the values in the “StopLoss” and

“SplitSL” fields will be used, however if “UseSlowMAForInitialStop” is “true”, then

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the Initial Stops will be dynamically generated based on the Ribbon, as per the

Precog rules. For buys, it will be the bottom of the Ribbon. For sells, it will be the

top of the Ribbon.

The “StopLossPipsFromMA” field can be set to “0” for the stop to be placed on the

Ribbon, however you can make the stop bigger by placing a value in this field. For

example, if the value is “5”, then the stop will be placed 5 pips further from the

Ribbon (5 pips above the Ribbon for sells or 5 pips below the Ribbon for buys).

The “MAInitialStopMinimum” field is the value that the Initial Stop will be for both

positions, if the stop loss based on the “UseSlowMAForInitialStop” (including the

“StopLossPipsFromMA” value) is less than the “MAInitialStopMinimum” value. For

example, if the dynamically generated stop loss is 14 pips, and the

“MAInitialStopMinimum” value is 20 pips, then the stop loss will be 20 pips.

If the “UseCounterSignalSL” field is “false”, then no action will be taken if any

counter signals occur with the Ribbon Twist, however if the “UseCounterSignalSL”

field is “true”, then the stops on both positions will be set to the value in

“CounterSignalSL” if a counter Ribbon Twist occurs. That is; stops will be

tightened if a Ribbon Twist occurs no matter at what point the trade is or what

the price is, including whether the trade is in profit or not.

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The next section is the Trailing Stop section, as following.

We will only focus on the five trailing methodologies outlined in the Precog

manual, which are;

Simple Trail (value “1”)

50% Trail (value “2”)

PSAR Trail (value “4”)

Moving Average Trail (value “5”)

Candlestick Trail (value “7”)

The field, “TrailType”, determines the trailing methodology for the 1st or sole

position of the trade. Simply enter the trail value you wish to use.

The field, “TrailValue”, is the amount of pips you want to trail the 1st or sole

position with Simple and 50% Trails. The “TrailValue” field can also be used if you

want to give your trade a little more room than the standard trail methodology

you have selected. For example; if you enter 12, then the stop loss will be

entered 12 pips further away from where it would be placed by using the trail

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methodology for PSAR, Moving Average or Candlestick Trails. If you leave “Trail

Value” as “0”, the stop loss will be placed exactly at the standard point for the

trailing methodology used. That is; if you are using the PSAR trailing methodology

with a “TrailValue” of “0”, the stop will be placed on the PSAR dot and trail from

dot to dot as bars close, however if you enter a “TrailValue” of “12”, the stop will

be placed 12 pips further away from the PSAR dot (Below the dots for buys.

Above the dot for sells).

The field, “SplitTrailType”, determines the trailing methodology for the 2nd

position of the trade. Simply enter the trail value you wish to use.

The field, “SplitTrailValue” works exactly the same as “TrailValue” but it relates to

the 2nd position.

You can trail both positions with the same trailing methodology with same or

different trail values, or you can trail both position with different trailing

methodologies and different trail values. It is very flexible and can be executed in

complete accordance with Double Edged Trading.

Both Trail Types and Trail Values are displayed on the on-chart display as “Trail

Type” and “Trail By”.

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The next section is the Delayed Trailing section, as following.

Delayed Trailing relates to profit locking before the trailing methodology is used.

When executing trades, it's important to lock in profits as you go and the Delayed

Trailing and Split Delayed sections provide the parameters for being able to

specifically determine where the stops will be moved for both positions.

The “FirstMove” field is the number of pips for the 1st or sole position before profit

locking occurs. It is displayed on the on-chart display as “Target 1”. In this

example, Target 1 is 35 pips.

The “FirstSL” field is the number of pips that the stop is moved from the Target 1.

In this case, 10 pips. The on-chart display will display the difference of the

“FirstMove” and the “FirstSL” as “Profit Lock 1”. In this case, 35 pips (FirstMove)

minus 10 pips (FirstSL), equates to 25 pips (Profit Lock 1).

The “SecondMove” field is the number of pips for the 1st or sole position before

profit locking occurs. It is displayed on the on-chart display as “Target 2”. In this

example, Target 2 is 70 pips.

The “SecondSL” field is the number of pips that the stop is moved from the Target

2. In this case, 15 pips. The on-chart display will display the difference of the

“SecondMove” and the “SecondSL” as “Profit Lock 2”. In this case, 70 pips

(SecondMove) minus 15 pips (SecondSL), equates to 55 pips (Profit Lock 2).

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The “ThirdMove” field is the number of pips for the 1st or sole position before

trailing starts. It is displayed on the on-chart display as “Target 3”. In this

example, Target 3 is 100 pips.

The “SplitFirstMove” field is the number of pips for the 2nd position before profit

locking occurs. It is displayed on the on-chart display as “Target 1”. In this

example, Target 1 is 35 pips.

The “SplitFirstSL” field is the number of pips that the stop is moved from the

Target 1. In this case, 25 pips. The on-chart display will display the difference of

the “SplitFirstMove” and the “SplitFirstSL” as “Profit Lock 1”. In this case, 35 pips

(SplitFirstMove) minus 25 pips (SplitFirstSL), equates to 10 pips (Profit Lock 1).

The “SplitSecondMove” field is the number of pips for the 2nd position before

profit locking occurs. It is displayed on the on-chart display as “Target 2”. In this

example, Target 2 is 70 pips.

The “SplitSecondSL” field is the number of pips that the stop is moved from the

Target 2. In this case, 35 pips. The on-chart display will display the difference of

the “SplitSecondMove” and the “SplitSecondSL” as “Profit Lock 2”. In this case, 70

pips (SplitSecondMove) minus 35 pips (SplitSecondSL), equates to 35 pips (Profit

Lock 2).

The “SplitThirdMove” field is the number of pips for the 2nd position before

trailing starts. It is displayed on the on-chart display as “Target 3”. In this

example, Target 3 is 100 pips.

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The next section is the Special Trailing section, as following.

The Simple Trail moves the stop loss without delay (pip for pip).

The 50% Trail ratchets the Stop Loss (SL) up by half the Trailing Value setting:

For example, if the Trailing Value is 20, after trial activation target is reached;

when price reaches 1.2420, SL is set to 1.2400;

when it gets to 1.2430, SL is moved to 1.2410;

when it gets to 1.2440, SL is moved to 1.2420;

when it gets to 1.2450, SL is moved to 1.2430; and so on

The Moving Average Trail uses a moving average line as the trail value. As the line

moves closer to current price, the stop trails with it. When using this method,

with the default “MA_Period” of “21”, the Precog Ribbon is utilised as following;

On buy trades, use the bottom of the Ribbon as your trail.

On sell trades, use the top of the Ribbon as your trail.

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I don’t suggest you change any of the values, except the “MA_Period”. The

default is “21” to replicate the Precog Ribbon. However, you can change the

“MA_Period” field to “6”. When using this method, with the “MA_Period” of “6”,

the Precog Ribbon is utilised as following;

On buy trades, use the top of the Ribbon as your trail.

On sell trades, use the bottom of the Ribbon as your trail.

The Candlestick Trail works by moving the Stop Loss up or down with each

successive bar in the same direction. If you are in a buy trade, as long as each

successive bar is a upward candle, the trail will keep moving up. If you are in a

sell trade, as long as each successive bar is a downward candle, the trail will keep

moving down.

In this example, the “CT_Num” field is “3”, so a long/buy trade is activated with 3

consecutive candlesticks that are both upward candles. When this occurs. The

“CT_Stop” field is “2”, so the stop loss will be moved to the low of the second last

closed candlestick.

Conversely, for a short trade, after trailing is activated with 3 consecutive

downward candlesticks, the stop loss will be moved to the high of the second last

closed candle.

And of course, you can manage your trades more liberally by keeping your stops

a few pips below or above the last candle, depending on whether it's a long or a

short trade, by using the “TrailValue” and “SplitTrailValue” fields.

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Finally, the last section is General EA, as follows.

If you want to disable all alerts, change the “DisableAllAlerts” field to “true”.

If you want to setup your Metatrader platform to push email notifications to

you, change the “UseEmail” field to “true”.

You can also change the “TradeComment” field to whatever description you

wish.

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CONCLUSION

As a manual system with no alerts, Forex Precog can generate very good results.

With the Target Entry Elevator Indicator including alerts, it’s even better. And

with the Early Setup Precognition Trade Assistant, you now have the trading tools

to truly take your trading results to the next level.

You can now not only monitor trade setups as they occur in real time, you can

execute trades extremely simply and quickly and manage your trades

throughout the trade lifecycle, however be mindful that having all these great

trade setups alerted in real time with the ability to manage them automatically

is extremely tempting. Therefore, please be careful of not overtrading and stick

to sensible trading principles, as well as being as discerning as you can be when

deciding whether to execute a trade. It’s always better to take less trades than

more, particularly when the trade setups are occurring simultaneously.

All software will be updated as required so if there is something you would like

to see in new versions of the ESP Trade Assistant, or if there are any issues you

think you have discovered, please let me know by posting your results in the

forum and we’ll do our best to incorporate new features and resolve any issues

as quickly as possible.

I look forward to seeing your positive results with the Precog system.

Good trading & live well,