Each alert file will expire in 30 days and will be continuously optimized and updated. Also, customized alert files will be periodically uploaded. For example there are 2 different Intrepidus files, one for EUR/USD hourly and one for GBP/USD 15 minute. This means Intrepidus system has been optimized for that time frame and cross. Another form of optimization is take profit and stop losses built into the system – however the take profit and stop loss DO NOT affect the signals, they only reset the system, as the system cannot have more than one position at a time (it is either long or short, so if it is long, it cannot generate another long)
How to trade Intrepidus
The algorithm analyzes several indicators and generates signals and is attached to a Chart which has time frame (just like in your charting package)
Time Frame
Can be attached to any cross on any time scale. This means you could trade the same intrepidus system on the following chart time frames:
5 Minute
15 Minute
30 Minute
Hourly
4 Hour
Daily
As Intrepidus is a ranging system, it works well on smaller time frames, as anything can happen in a month or a week throwing off mathematical models (such as a terrorist attack). However, backtesting shows excellent results on the daily. From Sep. 2004 - Sep. 2005 Daily NZD/USD Intrepidus produced a profit of over 1,000 pips with only 1 losing trade. So it is still a valid indicator on large time frames, it should just be used with more caution, the further out you go time wise.
Accuracy
Intrepidus is 80% - 90% accurate for entry signals, and 60% - 70% accurate for exit signals.
Intrepidus indicates price action in the next 2 - 10 bars.
Ways to Trade
1) Use Intrepidus for accurate entry signals for trades you already want to place. (You want to Buy EUR/USD but want to get a good price or find entry point, wait for Buy Signal)
OR
2) Use Intrepidus to trade directly.
Intrepidus produces Buy and Sell signals in the following form:
A buy entry is essentially the same as a sell exit. You can trade Intrepidus by constantly reversing your position from long to short. For example, if you are long EUR/USD 1 lot, and you receive a BUY EXIT / SELL ENTRY signal, you can reverse and go short EUR/USD 1 lot, and so on.
Leverage and risk management
Intrepidus does not consider multiple lots, trade size, or price action of your broker. This is the discretion of the trader.
Intrepidus has built in stop losses for back testing purposes, usually between 45 - 70 pips. However stop losses should be managed by the trader. As a default you can use 45 - 70 pip stops on Intrepidus trades, or customize the stop loss management per cross / time frame (contact us for help doing this).
An example would be: If you are trading the 5 Minute EUR/USD and looking to profit in 2 - 5 bars, a 2 - 5 bar loss, in any pip value, would be your stop. In pip terms, if the 5 Minute means 20 - 30 pips profit, your stop should be about 15 - 20 pips.
STOP %
Since the majority of Intrepidus trades are positive, it is not necessary to use a specific Take Profit / Stop loss ratio such as 3:1. You can use 2:1 - if your take profit is 100 your stop can be 50, or even 1:1. This is a system of playing the numbers of price action, normal trading rules (such as extending your gains and limiting your losses) do not apply.
Intrepidus uses price data from FXCM and assumes the above pip spreads on crosses (if you have a better spread it is more in your advantage).
Price Action
Let's say you are using the 5 Minute signals, and Intrepidus says Sell 1.2034. If the price dips 30 points, which is significant in the 5 minute chart, you have 2 choices. You now take your profit, or risk an extra 10 points to build a position and be on the right side of the market.
Intrepidus Alert Packages (Cross / Time scale)
The standard package offers a good basic Intrepidus package. Other packages are for traders who trade specific regions / crosses. Also you can have a customized package, at no additional cost.
Q: Why only the 5 min EUR/USD ? A: The EUR/USD is a 5 Min indication of the dollar - many times the GBP/USD, NZD/USD, and AUD/USD will trend with the EUR/USD and USD/CHF. Unless you are a 5 Min trader, you would not need all 5 minute crosses.
Based on your trading style, crosses you trade, we will build a custom Intrepidus Alert Package combination to fit your needs. If required we may even tweak the signals to fit your cross / time scale combination
Levels of Accuracy
The Intrepidus system can be tweaked for accuracy. Why would we want to tweak it and make it less accurate? Different levels of accuracy work better under different market conditions. Also, the more accurate the signals, the less signals there are.
For example, in a 1 week period on the hourly, let's say there is only 1 signal which is 90% accurate. Most traders want more than 1 signal in a week, and can handle slightly less accuracy.
If an alert has a A2 next to it, that means:
Accuracy level 2.
Custom
For custom scripts and alerts, we can tweak the accuracy based on the cross and time frame or requirements of the trader.
Intrepidus Trading Strategies
Strategy A: Trade a single cross with multiple time frames
We have found the best time frame to use with Intrepidus is the hourly. But it can take hours for the trade to develop, and in the meantime the price moves. What a trader can do is use multiple signals on multiple time frames.
Example: EUR/USD 5 Minute + EUR/USD Hourly
A signal is generated on the EUR/USD Hourly to Buy at 1.2212 . It takes 8 hours for an hourly Sell signal to be generated *OR* it takes 8 hours for a significant profit to develop. In the meantime, 10 5 minute signals are generated. Knowing that the hourly signal is Buy, you can maintain a long position in EUR/USD adding to your long when the 5 Minute signal is generated, and liquidating when the 5 Minute says sell, always maintaining a long EUR/USD position and an up bias. This can drastically increase profits on a correct trade, and mitigate the risks of a wrong trade. (If the hourly signal is wrong, you have made money on the 5 minute covering your loss). Of course this requires patience, concentration, and the ability to stare at the screen for hours at a time.
Strategy B: Trade multiple lots on 1 signal
Intrepidus signals are correct usually for several bars of profit 80% - 90% of the time. If a signal is generated, you can open 2 or 4 lots. When you have any profit you are happy with, cover 50% of the lots, locking in a small profit, and ride the rest.
Intrepidus Trading Tips
Use Charts
When using Intrepidus make sure you have a chart open to the cross and time frame of your signal.
Weed out false signals
Intrepidus has been tested and tweaked to be as accurate as possible, but because of extreme volatility and price action during certain market conditions, it cannot be perfect. Using a Tick Back Testing lab with real tick data, it can generate 10 winning trades and 6 losing trades. However, after watching Intrepidus for some time, it may become clear when a false signal is generated. Usually it happens during extreme market conditions.
Use signals against each other
If the EUR/USD generates a Buy signal, that indicates that the EUR is going up and USD is going down, which most likely would mean USD/CHF is going down. However the signals are not exactly inversely related on EUR/USD and USD/CHF as they are actually 2 different crosses. So, sometimes a EUR/USD signal will be generated and a USD/CHF signal will not, and the astute trader can use the opposite signal (in this case the EUR/USD) to indicate price action in the USD/CHF.
Weekend no friend
Weekends can throw off the signals. The signals CAN work in illiquid conditions, such as Sunday NY time when only NZ and Asia players are in, so we do not turn off the system during that time. However, if you want a perfectly accurate signal, beware that Sundays NY / Monday Asia can generate false signals.
Also, we do not recommend holding positions into the weekend, and if you do, use a very tight ( 20 pip - 30 pip ) stop.
You have to be in to win
The more frequently you trade the signals, the more likely you are to profit. Don't wait for one false signal, lose money, and then complain that they don't work. If you are trading a 5 minute signal, trade all of them (unless you are using it for an indication of price action).
Elite FX eGraph
To import an alert file, first login to Elite FX eGraph.
In the menu bar, click "Intelliscript" and then "Organizer". This will load the Intelliscript organizer. Click the tab "Organizer" and in the bottom left you will see "Import Intelliscript" - Click there and select the alert file you have been sent by the Elite Forex Trading team. Then you should see your alert file in "My Intelliscript". To add your alert file to a chart, select the alert in "My Intelliscript", select the cross and time frame from the menus to the right, and then click "Add". See your alert in the window to the right.
Technical Issues
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