BHS PRIDE trading system

Pending Order means client’s instruction to open a position when the market price reaches the order level.

Stop Loss order means an instruction that is attached to a pending order or market order for minimising loss.

Trailing Stop mean a stop-loss order that is adjusted as the price fluctuates.

Take Profit Order is intended for gaining the profit when the CFD price has reached a certain level. Execution of this order results in complete closure of the whole position.

This is a secure semi-automated trading system that trades pending orders.

Stop loss(SL) and take profit(TP) are set immediately after placing an order, and a multifunctional Trailing Stop is activated.
It has four different strategy setups that compensate each other at different market times.
The system uses only dynamic values that always adjust according to the market; it monitors volatility then calculates Stop Loss and Take Profits accordingly. When SL is calculated, next, it calculates position size according to the available balance you have, so the risk in % always stays the same; position size is always calculated according to the risk %, available balance, and SL location.

The best results are shown during high volatility and trend movements.

Weak point In this strategy is the flat market, but all losses during flat market are usually recovered with few profit trades.

Small SL and Trailing Stops helps to limit losses and Increase profits safely.

This system does NOT use high risk tricks such as:

* Grid trading - adding many orders in case price move against opened positions. (High Risk)

* Martingale - same as grid but in addition encreases position size with each order in case price move against opened position (Very high risk)

This trading system cannot work on high commission Brokers, the limit for spread is 1.5-2 pip is the maximum for this system, thankfully the average spread these days is 0.8-1.2 pip

This system has some balance limits, due to possible slipage that depends on the broker we use.

Real account tests were made from June 2021 until now.
We used Dynamic Risk Management - lowering risk after big profit and raising it during the drawdown.
During the Real account test, we made some modifications in this trading that helped us to boost our performance. Modifications were made after the December loss of 27.54%.

What have we changed?

We have analyzed real statements and started to use Semi-Auto trading (controlling this trading system manually at specific market situations. Automatic system cannot see a lot of data like news and market spike speed but human does and in combination that makes the best results. In addition, we control the risk value - when profits go high, we start to lower the risk in order to meet the drawdown time with minimized risk and save the profits gained; after a few consecutive losses, we start to put risk forward to its initial value by steps.

This system survives with stable 0.8% risk per trade on 12 year historical data showing the maximum drawdown of 61.16% and this is not bad when we see the total Risk/Reward Ratio. It can also survive with 1.5% risk per trade but the drawdown increases up to 89.24% so we prefer to stick with the max risk 0.8% when we meet a drawdown period in order to stay safe.
You can see all risk results in the next chapter BACKTESTING.

This system was backtested and optimized on 12-year historical data ticks from Dukascopy Bank that gives us 99.9% accuracy in our tests. This system passed backtesting together with Real-time testing.

Our Testing was done with the following parameters

Risk Per Trade 0.5%

Spread 1.5 pip (average broker spread is lower - 0.8-1 pip)

The trading system has a dynamic volume per trade, which means that every time an order is placed, its volume is automatically calculated according to the current balance risk value and SL distance. This function allows us to test all the parameters of this strategy; for example, for 12 years with a stable risk of 0.5% per trade, the maximum drawdown was 40.68%, which means that if you reduce the risk to 0.1% per trade and wait for a drawdown of 8.13% and put the lot back to 0.5%, then we maximize our profit by five times at the same time minimizing our drawdown as well. Of course, it is impossible to predict exactly when negative trades will begin or when a series of positive trades ends. Still, history gives us a rough idea, and experience in the market allows us to increase our chances of success and make a stable trading system even more productive in terms of drawdowns.

For our test we have put unlimited volume so that system never stops to encrease the volume according with the systems rules

Below you will find results for:

Risk 0.25% per trade

Risk 0.50% per trade

Risk 0.60% per trade

Risk 0.75% per trade

Risk 0.80% per trade

Risk 1.00% per trade

Risk 1.50% per trade

We have collected some statistics for the monthly drawdowns.

Almost every month it shows some drawdown during the flat market, after that it recovers the losses and makes a profit.

The maximum drawdown time was five months (in combination - 41.56%) happened only one time back in 2018.

So if we add balance on drawdowns and withdraw back what we have invested upon recovery, we can make drawdowns profitable and turn it to our advantage.

So there are 3 ways of investment

1. Invest and leave it as it is with reinvestment.
2. Invest, withdraw profit each profitable month, and reinvest it on the drawdowns.
3. Invest, withdraw partial profit, reinvest it back on the drawdown and withdraw it back uppon recovery.

When the market trades flat, most traders make profits as it's easy to find low and high prices, but what happens next? Next, we get a trend market that can go up or down; it doesn't matter; what matters is:

1. Stop losses of traders start to hit.

2. Traders who trade without stop losses reach stop outs and lose their balances

This is when whales make their profits, this is where brokers get their primary income after a few months of stagnation, and this is where we make money too.

High volatility hit stop losses and stop outs of greedy traders, but this system is waiting for this moment to be in the train with wales from the beginning, not at the end. This is how the market worked, works, and will work.

Whales feed small fishes with a little to take later all they have.