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6,705.54
-22.13
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3.26
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0.50
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0.40

The Delta Plus Trading System

The Delta Plus Trading System known as Delta Plus is a trend following system that makes money in trending markets. The system does not try to pick tops or bottoms. The Delta Plus Systems takes the center out of the trending market. In the example above we will add Delta timing as a filter and a directional filter. The British Pound market is trending down to a Long term 10 low at point [1]. We will go long the market when it goes through the Delta Plus Trailing Stop. The yellow horizontal line on the right of the screen is the stop. The price of the stop is found by either left clicking on the line with your mouse or by looking in your price box on the top left of the screen. The SAR = 15941 is the price of the stop. We will call our broker before the market opens and place a buy stop at that price plus a few ticks. In this trade we started flat or with no position so we will buy on one contract. If we had been short the market our order to go long would have been a two lot. Once we go through the SAR value it becomes our entry point on this long trade.

 

chart1

 

The price box will reflect the new entry point and the date it took place

 

chart2

 

The market moves up to the Intermediate 4 high and puts us long when it trades above our entry point. At [2] we see Delta Plus has moved below the market. Call your broker and set your protective stop on this long trade at the new SAR= 15484. [3]As long as the TC Index stays green the stop will not move. Remember if the TC Index is green on an up trend when the market moves sideways it will stay green.

 

chart3

 

At [4] the TC Index turns yellow triggering the Delta Plus stop to move up to protect your long trade profit. Delta timing says we still have time for the trend to continue up. The Delta Plus stop allows room for a miner retracement. The price box reflects the SAR price of 165.97 which is your new stop on this long trade.

 

chart4

 

The long trade is stopped out at [5] The Delta Plus stop is now above the market. The profit in the long trade is $5490. The entry for the short trade is your old SAR, 180.07

Should we take the short trade with Delta Plus? If I used Long term as a filter a short trade would be too risky. Look how late the long term high came in. We are just above the Long term low.

Therefore I would only take the long trades using Delta Plus as my entry point.

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