Forex Trading System For Metatrader Using Non Lag Dots

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Here is a forex trading system I have been working on over the last few weeks. It’s not quite the finished article but whilst playing around with it I have made a few points. It is really a scalping trading system using the non lag dots indicator and the shi channel metatrader indicator. Although you can use anything to identify the trend. It just happens I was reviewing the Shi Channel indicator for this site at the same time.

What you need to do is download the non lag dot metatrader indicator and apply it to your chart 3 times. This is because you need to offset two of them to form a nice channel. You will need to offset one above and one below the ‘normal’ indicator. For the chart in this article I was using a EUR/USD chart with the no lag dots set to Length=20 and one offset to +0,05 and one offset to -0.05. I have also added the Shi Channel Indicator which you can download also but you should read this article first as it is a recalculating indicator.

Once you have your chart set up you should be able to clearly see how the price stays in the the channel quite nicely. As mentioned previously I was using the Shi Channel to identify the trend, but you can use anything you think works well. And in short only take trades in the direction of the current trend. That should be fairly straight forward and I do not think it needs anymore explanation.

The idea behind this forex trading system is that you take a trade in the direction of the trend and the colour of the non lag dots. You do not want to take a trade at the widest dots as these are used as your stop and target levels. If you offset both of those non lag dot indicators then your stop and targets will be the same i.e a 1:1 risk to reward.

The trades I have taken have required the price to return to the middle indicator and then taking a trade in the trend direction. Quite often on a losing trade the dots will change colour before the price hits your initial stop and this you can close out manually. This will raise the reward to risk ratio somewhat.

The EUR/USD is quite a choppy market and this marks the choppy’ness quite nicely. This isn’t a finished forex trading system yet. I think you do have to be trading using a a proper forex broker to benefit from this type of trading. The greatest benefit of this forex trading system is the fact that it gives you are prety good target for every trade. It is amazing how many times the price retraces from the outer non lag dots indicators.

There will be losses, as with all good trading systems (in my opinion). However with a 1:1 risk to reward ratio you should be okay as long as you stick with the trend. But as always demo test it with real live prices and see if you can make any money from it.

3 Responses

  1. mike says:


    what time scale do you suggest

  2. Jason says:

    I think you really have to be looking at it on the 1 min to get the idea. Its not a brilliant concpet but certainly shows how the FX pairs like to move in tight channels. Maybe something in it…maybe nothing.

  3. Andrew The Forex Trading System Guy says:

    Nice work! I’ve bookmarked this post! I think that the grate way of reduce losses in this case is to set up automatic stop losses or trailing stops on the lower dots when the trend is bullish and the upper ones when it’s bearish.

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