The Williams trade modified trading system commonly referred to as Williams Trade is a scalping strategy. It was submitted by Joy.
It is a special kind of trading system and used to trade the majors during the London and New York sessions. The New York session opens at eight am and closes at five pm of the EST time zone while the London opens at three in the morning and closes at twelve noon EST (EDT). Therefore there are some hours when the London and the New York sessions overlap since when the New York open it finds the London session still open. The two sessions overlap between 8:00 am and 12:00 noon EST (EDT).
Trading the currencies involved in the London and New York during the time the two trading sessions overlap give the best returns. For example, trading GBP/USD currency pair would give good results between eight in the morning and twelve noon EST when two markets for those currencies are active. The main reason for this is because at those overlapping trading hours there is the highest volume of trades and therefore more chances to win in the foreign currency exchange market due to the volatility of the market prices.
This trading system is best used in trading using the one and five timeframes chart. However for better results during scalping you should always go for the tightest timeframe. So it is best advisable to use the 1M timeframe when using this trading system to trade.
The Williams Trade Modified Trading system employs the use of several indicators that including Williams Trade and the Bollinger Bands (2, 22).
Fig. 1. The indicators found in the Williams Trade Modified Trading system template.
The default template comes with only the Williams Trade indicator. So you are the one to load the Bollinger Band indicator on the chart. The Bollinger Band is by default found in the MT4 platforms so no need to download it.
From the chart above it is evident that this trading system is easy to use. Actually the main indicator to watch for trading signals is the Williams Indicator. The Bollinger Band indicator is just used for confirming the signal. Therefore before opening any trade, it is important to ensure both indicators agree.
In addition, there are red and green arrows that form to help in showing when to enter a trade and when to get out.
Opening and closing trades when using the Williams Trade Modified Trading system
The trader is to open a long trade when the green arrow appears. At this time the Williams Trade indicator has to turn below the red line. You should also ensure that when this arrow appears the candle on which it appears on doesn’t close outside the Bollinger Band.
The buy trade is closed when Williams Trade indicator turns above the yellow line. However since not all trends will go to this, you should target at least 6 to 10 pips in your profits.
The trader is to open a long trade when the red arrow appears. At this time the Williams Trade indicator has to turn above the green line. You should also ensure that when this arrow appears the candle on which it appears on doesn’t close outside the Bollinger Band. If the upward trend continues then you should open it when the Williams trade turns above the yellow line.
The sell trade is closed when Williams Trade indicator turns below the red line. However since not all trends will go to this, you should target at least 6 to 10 pips in your profits.
Fig. 2. Williams Trade Modified showing how to open and close trades.
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