Introduction to the 'Disaster' Trading System
If you’re a trader using MetaTrader 4, you might have heard of the 'Disaster' system. It’s all about taking advantage of price movements around the Moving Average (MA) line. Let’s break down how this system works and why it can be a game changer for your trading strategy.
How It Works
The core idea behind this system is quite simple: prices tend to cross the MA line frequently and often continue in that direction for a bit. The system places a pending order—either a Buy Limit or Sell Limit—at a price that’s equal to the MA value adjusted by a specific factor (let's say MA(590-M1)). As the market fluctuates, the MA value changes, and so does your pending order, keeping your strategy in sync with the market.
Order Management
- Triggering Orders: Once your order is activated, it remains static—no adjustments made. This is where discipline comes into play.
- Exits: Set tight Take Profit (TP) and Stop Loss (SL) levels to manage your risk effectively. In this case, a small SL of 30 points is used, while aiming for a TP of 70 points.
- Re-entries: The system continuously monitors for active orders. When none are found, it places a new pending order, ready for the next market movement.
Keep in mind, the market can be tricky. Often, the price might just brush against the MA and reverse without making significant moves. That’s why having a well-defined SL is crucial.
Final Thoughts
Although I had to reconstruct the original description based on later versions, I believe I’ve captured the essentials of this intriguing system. If you decide to give it a try, make sure to backtest it thoroughly before going live. Trading is all about finding what works for you, so take your time and stay patient.
Happy trading!
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