Tom Brown

Founder & CEO

ZennerTrading, Inc.
Market is in a Superposition all the time
• The Market is always Long & Short at the same time (Quantum Ambiguity)
• Looking at a current time snapshot of the Market, causes it to be either Long or Short, at
the moment we are evaluating it (Observer's Paradox)
• We can’t determine what state the Market is in, until we take a peek at it, and this is
always after the fact (Schrodinger Cat Experiment)
• We trade in both directions of the Market at the same time, as we know for certain that
change is imminent, and sooner or later the Market has to transition from Bracket Market
to Break-Out Market and vise versa
• When in Break-Out Market, we aim to take profit outside the consolidation channel both
on the Long or Short side of it
• When in Bracket Market, we aim at profit taking inside the consolidation range in which
the Market has been stuck in sideways
Albert Einstein
Everyone has heard about how easy it is to
trade and make a quick buck in the FX Market
They say: All you need is to follow the trend –
BUY Low, SELL High and there you have it…
But regardless of its perceived simplicity…
FACT is: Most people who tried have failed!
There is nothing scientific of artistic about trading…

It is just a cold blooded "Dog Eat Dog" fight, against the

odds and uncertainty of quantum reality, and the
inherent unknown outcome from the fractal nature of
the Market…

The ONLY way it could be overcome is through the power

of compounding, by offsetting hedged positions until
reaching net positive outcome!
Trading FX is a ZERO loss game. Traders are liquidity consumers. For them
to win, means a Liquidity Provider – the Banks have to temporarily loose in
the mean time, while they still make commissions from the transactions.
Most Traders are being outgunned and find themselves fighting an uphill
battle, against the smartest professional traders in the world, who utilize
21st century technology, in contrast with ragtag individual traders, armed
with outdated, useless methodologies, reminiscent of using a 16th century
Musket, which is capable of firing one lead ball at a time, compared to a
laser-gun blasting adversary…
Instead, they should be fighting back with automated multi-shot trading
systems, such as the ZennerGUN Z4…
“Always Want What The Market Wants!"
This means that, You Always have to GO with the Latest
Directional move of the Market and never Resist it…

Never ask the question “Why didn’t the Market go in my

direction”. There is no answer to a question like this, as no
body know when and where the Market will ever go next!

Price Action is ALL you NEED to care about…

 T&F Analysis do not work
most of the time

Mainstream Technical & Fundamental

Analysis Based Trading is Like:
"A Broken Clock That Shows The Right Time Twice a day”
"Driving a Car With a Gas And a Break Pedals Only, But
No Steering Wheel.“ (How far can you go?)
Why did airplane engineers decided to have their
pilots, sitting in a cockpit located at the front of the
craft instead of at the rear end?
Following Technical Analysis for trading is like flying an airplane with its
cockpit located at the rear end of the craft – capable of observing what
has happened only in the past, with no idea of what is coming up…
It is doomed to CRASH at the first hill side, when there is no one to
observe what is happening NOW and to steer it AWAY from it…
What ZennerTrading does best is, prevent you from crashing…
You may Not know which Way the Market Winds
are Going to Blow in Today,
BUTIf you Adjust Your Sails in Accordance with its direction,
You Can Still Reach Your Destination
Even When Having To Sail Against the Wind...
Uneducated Traders are doomed to lose by design
Undertaking unsubstantiated High Risk, expect to win on each trade in one direction only.
Use disproportionally high lot sizes compared to their account size
Don’t leave enough available funds to withstand Draw Downs.
Use Stops as means to prevent trading losses Leading to Negative Equity Curves over time.
Misguided wishful theories behind setting Profit target, Stop out levels and Risk Reward ratios.
Delusional, overconfident and stubborn reaction to adverse market movements, leading to
loses.
The Markets are rigged in the broker’s favor
Brokers make their profit on commissions earned by volumes sold and bought, regardless
of price level, they don’t care if a pair will go up or down.
Brokers push prices up and down in search for more buying and selling by market
participants.
Markets represent a Random/Unpredictable price distribution, seeking equilibrium
between buyers and sellers.
Market participants Agree on Price, disagree on Direction.
Only Brokers can gauge the real volume ratio between existing buying and selling in the
market.
The Volume you see in your Chart is Tick Volume, which is indicative of nothing.
The Future is never exactly the same as the past

The number of market participants and their ideas/views of the

market are dynamic/changing all the time, and thus unknown
at any specific point of time

There are no means for accurate measurement of the real

market sentiment/supply and demand at all times
A fact is a statement that can be proven true or false.
An opinion is an expression of a person’s feelings that
cannot be proven.
Opinions can be based on facts or emotions and
sometimes they are meant to deliberately mislead others.
Therefore, it is important to be aware of the source,
purpose, and choice of language in communicating a
certain information…
The Trend seams to be an illusion, an opinion held by a
market participant not based in fact. It is something that
becomes a reality/visible only in hindsight or after the fact,
after it has developed, at which point it is usually too late to
jump in and follow through with a trade in the same
direction…

While this same trend was developing, it never looked like,

what it eventually turned out to be…

The Market can look any way it wants and it always looks
pretty in all directions it decides to go, with or without our
proper or improper opinion of it…
Your brain is your worst enemy when it comes to trading decisions…

It is Scientifically proven that on a Physiological level, Your brain will choose to

cheat into making a decision rather than admit it doesn’t know something - which
way the market is going to go… It is frequently unreasonably opinionated based
on accidental, anecdotal, random facts about pre-existing Market conditions…

There is no secure rational way of determining market direction at any time…

Any Trading decision you make has a 50/50 chance and could not be 100%
substantiated by existing Market facts…

We can ONLY make Educated Assumptions of possible Market Behavior, and

adjust our trading mindset accordingly, both on the long and short sides as well…
Using a Market Neutral trading strategy, which assumes all
possible ways a Market can move in and profit from its
versatility…
You have to be prepared that not each trade will turn out a
winner
Nevertheless, one trade, out of a dozen trades in any
direction, has a better chance of taking profit than executing
just one trade in one direction…
Luckily the markets can EITHER obtain direction
out of a BRACKET/RANGE
As they BREAK OUT either UP or DOWN
OR
They do not have direction and they move
SIDEWAYS in a consolidation pattern
 RANGE

You BUY the TOP of the RANGE

OR
You SELL the BOTTOM of the RANGE
This is called Consolidation Channel…
 RANGE

You BUY the BOTTOM of the RANGE

OR
You SELL the TOP of the RANGE
This is called Consolidation Channel…
We see a perfect formation of a Consolidation Pattern/Bracket
Market, after a significant directional move to the upside…
Bracket Market is being Hedged by 2 autonomous EAs at both the
Top & Bottom of the Linear Regression Channel, aimed at initial
continued action within the range, with counter-balancers pointing
in the direction of a possible breakout to the Long and Short sides…
A Trading Strategy equally biased to taking profit on both sides of the Market,
regardless of Technical and Fundamental indicators.
The only thing that matters is PRICE ACTION.
Market Neutrality is achieved by multiple hedging of an existing positions,
instead of accumulating multiple stop losses…
A Fixed Profit is taken regardless of the direction of the winning trade
Each subsequent leg in the hedging sequence offsets current losses and
commissions.
If only one leg (out of a dozen in a hedging sequence) is successful, it would
be powerful enough to pay off all previous losses and head out with the same
incremental profit size, as the very first trade would have profited, should it
had reached its profit target in the first place.
Trading Commission can be:
Paid Separate on the side
$5 per 1 Standard Lot (100,000 units of base currency) Round Trip
OR
Baked into the spread (Preferred)
1 pip over existing spread
1. New Leg in the execution sequence starts where previous leg ends in
a loss…
2. Winning Leg in the execution sequence takes profit one spread away
from price level where loosing leg stops out
• All winning Legs take Profit at the same time when All loosing Legs take
losses.

• Execution Sequence designed to be Net Positive at all times, regardless

of current losses
Long Profit Target
10
Main Position
1 Lot
Short Stop Loss
10 RISK RANGE
Long Stop Loss

10 Hedge Position
2 Lots
Short Profit Target
Long Profit
Target
10
Main Position
1 Lot
20

10 RISK RANGE
20

10 Hedge Position
3 Lots Short Profit Target &
Long Stop Loss
 INPUT PARAMETERS OUTPUT
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0 $8.00 $8.00 $8.00 $8.00 8.00 8.00 0 1.59000 1.59080 1.58920 $0.00 0.1000 Short
1 $8.00 $16.00 $16.00 $16.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 0.2000 Long
2 $8.00 $32.00 $32.00 $32.00 8.00 8.00 8 1.59000 1.59080 1.58920 $0.00 0.4000 Short
3 $8.00 $64.00 $64.00 $64.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 0.8000 Long
4 $8.00 $128.00 $128.00 $128.00 8.00 8.00 8 1.59000 1.59080 1.58920 $0.00 1.6000 Short
5 $8.00 $256.00 $256.00 $256.00 8.00 8.00 8 1.59080 1.59000 1.59160 $0.00 3.2000 Long
6 $8.00 $512.00 $512.00 $512.00 8.00 8.00 -8 1.59000 1.58920 1.59080 $0.00 6.4000 Long
7 $8.00 $1,024.00 $1,024.00 $1,024.00 8.00 8.00 8 1.58920 1.59000 1.58840 $0.00 12.8000 Short
8 $8.00 $2,048.00 $2,048.00 $2,048.00 8.00 8.00 8 1.59000 1.58920 1.59080 $0.00 25.6000 Long
9 $8.00 $4,096.00 $4,096.00 $4,096.00 8.00 8.00 8 1.58920 1.59000 1.58840 $0.00 51.2000 Short
 Break
Out Bracket Market
Distance is 10 pips, because it is supposed to be 12 - 2 (spread) as the BUY entry is on the ASK…
The targeted 10 – 2 = 8 pip exit is 2 pip (spread) before the ASK (early) as it is selling on the BID.
Altogether 4 pips shorter…

INPUT PARAMETERS OUTPUT

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0 $125.10 $125.10 $42.89 $42.89 $125.10 12.00 35.00 0.00 1.64160 1.64160 1.64280 1.63810 $ 58,675.47 $0.00 0.3574 Short
1 $125.10 $167.99 $57.60 $57.60 $167.99 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 $ 78,960.77 $0.00 0.4800 Long
2 $125.10 $225.59 $77.34 $77.34 $225.59 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 $ 105,807.45 $0.00 0.6445 Short
3 $125.10 $302.93 $103.86 $103.86 $302.93 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 $ 142,387.22 $0.00 0.8655 Long
4 $125.10 $406.80 $139.47 $139.47 $406.80 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 $ 190,798.90 $0.00 1.1623 Short
5 $125.10 $546.27 $187.29 $187.29 $546.27 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 $ 256,761.93 $0.00 1.5608 Long
6 $125.10 $733.56 $1,283.73 $1,283.73 $733.56 14.00 8.00 -10.00 1.64590 1.64180 1.64040 1.64260 $ 1,509,209.91 $0.00 9.1695 Long
7 $125.10 $2,017.29 $691.64 $691.64 $2,017.29 12.00 35.00 14.00 1.64240 1.64040 1.64160 1.63690 $ 946,628.94 $0.00 5.7637 Short
8 $125.10 $2,708.94 $928.78 $928.78 $2,708.94 12.00 35.00 12.00 1.64590 1.64160 1.64040 1.64510 $ 1,273,896.37 $0.00 7.7398 Long
9 $125.10 $3,637.71 $1,247.22 $1,247.22 $3,637.71 12.00 35.00 12.00 1.64240 1.64040 1.64160 1.63690 $ 1,707,023.12 $0.00 10.3935 Short
 • Insuring your original trade to either succeed or exit at a ZERO loss
• Replaces need for setting stop losses and having to absorb it at the same time
• Required resources for hedging sequence execution at minimum
• Leg 9 requires only 2.65 lots compared to 10.39 in previous NET Positive Hedge

INPUT PARAMETERS OUTPUT

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0 $125.10 $125.10 $42.89 $42.89 $125.10 12.00 35.00 0.00 1.64160 1.64160 1.64280 1.63810 $ 58,675.47 $0.00 0.3574 Short
1 $0.00 $42.89 $14.71 $14.71 $42.89 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 $ 20,160.20 $0.00 0.1225 Long
2 $0.00 $57.60 $19.75 $19.75 $57.60 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 $ 27,014.67 $0.00 0.1646 Short
3 $0.00 $77.34 $26.52 $26.52 $77.34 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 $ 36,354.18 $0.00 0.2210 Long
4 $0.00 $103.86 $35.61 $35.61 $103.86 12.00 35.00 12.00 1.64160 1.64160 1.64280 1.63810 $ 48,714.61 $0.00 0.2968 Short
5 $0.00 $139.47 $47.82 $47.82 $139.47 12.00 35.00 12.00 1.64510 1.64280 1.64160 1.64630 $ 65,556.24 $0.00 0.3985 Long
6 $0.00 $187.29 $327.76 $327.76 $187.29 14.00 8.00 -10.00 1.64590 1.64180 1.64040 1.64260 $ 385,330.19 $0.00 2.3412 Long
7 $0.00 $515.05 $176.59 $176.59 $515.05 12.00 35.00 14.00 1.64240 1.64040 1.64160 1.63690 $ 241,692.50 $0.00 1.4716 Short
8 $0.00 $691.64 $237.13 $237.13 $691.64 12.00 35.00 12.00 1.64590 1.64160 1.64040 1.64510 $ 325,250.14 $0.00 1.9761 Long
9 $0.00 $928.78 $318.44 $318.44 $928.78 12.00 35.00 12.00 1.64240 1.64040 1.64160 1.63690 $ 435,835.69 $0.00 2.6537 Short
 CURRENT
INPUT PARAMETERS OUTPUT
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$3.00 $3.00 $6.00 $6.00 6.00 3.00 0 1.64000 1.63940 1.64030 $0.00 0.1000 Long
$6.00 $12.00 $18.00 $18.00 9.00 6.00 6 1.63940 1.64030 1.63880 $0.00 0.2000 Short
$12.00 $36.00 $36.00 $36.00 12.00 12.00 9 1.64030 1.63910 1.64150 $0.00 0.3000 Long
$21.00 $81.00 $57.86 $57.86 15.00 21.00 12 1.63910 1.64060 1.63700 $0.00 0.3857 Short
$33.00 $150.86 $82.29 $82.29 18.00 33.00 15 1.64060 1.63880 1.64390 $0.00 0.4571 Long
$33.00 $233.14 $148.36 $148.36 21.00 33.00 18 1.63880 1.64090 1.63550 $0.00 0.7065 Short
$33.00 $381.51 $277.46 $277.46 24.00 33.00 21 1.64090 1.63850 1.64420 $0.00 1.1561 Long
$33.00 $658.97 $539.15 $539.15 27.00 33.00 24 1.63850 1.64120 1.63520 $0.00 1.9969 Short
$33.00 $1,198.12 $1,089.20 $1,089.20 30.00 33.00 27 1.64120 1.63820 1.64450 $0.00 3.6307 Long
$33.00 $2,287.32 $2,287.32 $2,287.32 33.00 33.00 30 1.63820 1.64150 1.63490 $0.00 6.9313 Short
 SL Pips
Desired Net Required Actual Loss + (spread Distance b/w Commission Required
Try # Profit Profit Actual Net Loss Commission included) TP Pips positions Price Action Actual SL Actual TP Cost Lots Position Type
0 $20.00 $20.00 $20.00 $20.00 30.00 30.00 0 1.64000 1.63700 1.64300 $0.00 0.0667 Long
1 $20.00 $40.00 $40.00 $40.00 30.00 30.00 30 1.63700 1.64000 1.63400 $0.00 0.1333 Short
2 $20.00 $80.00 $80.00 $80.00 30.00 30.00 30 1.64000 1.63700 1.64300 $0.00 0.2667 Long
3 $20.00 $160.00 $133.33 $133.33 25.00 30.00 30 1.63700 1.63950 1.63400 $0.00 0.5333 Short
4 $20.00 $293.33 $195.56 $195.56 20.00 30.00 25 1.63950 1.63750 1.64250 $0.00 0.9778 Long
5 $20.00 $488.89 $244.44 $244.44 15.00 30.00 20 1.63750 1.63900 1.63450 $0.00 1.6296 Short
6 $20.00 $733.33 $244.44 $244.44 10.00 30.00 15 1.63900 1.63800 1.64200 $0.00 2.4444 Long
7 $20.00 $977.78 $325.93 $325.93 10.00 30.00 10 1.63800 1.63900 1.63500 $0.00 3.2593 Short
8 $20.00 $1,303.70 $521.48 $521.48 10.00 25.00 10 1.63900 1.63800 1.64150 $0.00 5.2148 Long
9 $20.00 $1,825.19 $730.07 $730.07 10.00 25.00 10 1.63800 1.63900 1.63550 $0.00 7.3007 Short
Transaction #48 Produces 2 pip NET profit on top
of the required 6 pips to cover expenses and take
fixed profit, thus the total return for this series of
executions comes to $76.9 instead of the
targeted $6.
Winning Leg in the execution sequence takes profit, one spread
away from price level where loosing leg stops out with a loss
All winning Legs take Profit at the same time when All loosing Legs
take losses.
Execution Sequence designed to be Net Positive at all times
 INPUT PARAMETERS OUTPUT
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0 $1,001.00 $1,001.00 $1,356.60 $1,356.60 $997.50 102.00 75.00 Di 0 1.60469 1.60469 1.61489 1.59719 $ 213,423.77 $0.00 1.3300 Short
1 $1,001.00 $2,357.60 $3,202.80 $3,202.80 $2,355.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 506,227.66 $0.00 3.1400 Long
2 $0.00 $3,202.80 $4,355.40 $4,355.40 $3,202.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 685,202.63 $0.00 4.2700 Short
3 $0.00 $4,355.40 $5,926.20 $5,926.20 $4,357.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 936,682.39 $0.00 5.8100 Long
4 $0.00 $5,926.20 $8,058.00 $8,058.00 $5,925.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 1,267,705.10 $0.00 7.9000 Short
5 $0.00 $8,058.00 $10,954.80 $10,954.80 $8,055.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 1,731,492.06 $0.00 10.7400 Long
6 $0.00 $10,954.80 $14,902.20 $14,902.20 $10,957.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 2,344,452.09 $0.00 14.6100 Short
7 $0.00 $14,902.20 $20,267.40 $20,267.40 $14,902.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 3,203,421.53 $0.00 19.8700 Long
8 $0.00 $20,267.40 $27,560.40 $27,560.40 $20,265.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 4,335,872.38 $0.00 27.0200 Short
9 $0.00 $27,560.40 $37,485.00 $37,485.00 $27,562.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 5,924,798.25 $0.00 36.7500 Long
10 $0.00 $37,485.00 $50,979.60 $50,979.60 $37,485.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 8,020,240.62 $0.00 49.9800 Short
11 $0.00 $50,979.60 $69,329.40 $69,329.40 $50,977.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 10,958,055.43 $0.00 67.9700 Long
 • Long position’s margins get offset by Short’s position margins, thus providing
extra equity for new trades to be accumulated…
• If directional move continues through the initial Profit Target Level, all
winning legs start to accumulate extra net pips by individual dynamic
position trailing, thus significantly increasing Actual profit potential, as those
profits stack up on top of the already secured, predefined, net fixed, “baked
in” into the hedging sequence profits…
• Keeping Multiple Opened position in opposite directions not supported by
US Brokers (FIFO requirements)

INPUT PARAMETERS OUTPUT 1.00%

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0 $1,001.00 $1,001.00 $1,356.60 $1,356.60 $997.50 102.00 75.00 0 1.60469 1.60469 1.61489 1.59719 $ 213,423.77 $0.00 1.3300 Short $750.00 0 -$2,134.24
1 $1,001.00 $2,357.60 $3,202.80 $3,202.80 $2,355.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 506,227.66 $0.00 3.1400 Long $750.00 0 $5,046.58
2 $0.00 $3,202.80 $4,355.40 $4,355.40 $3,202.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 685,202.63 $0.00 4.2700 Short $750.00 0 -$6,852.03
3 $0.00 $4,355.40 $5,926.20 $5,926.20 $4,357.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 936,682.39 $0.00 5.8100 Long $750.00 0 $9,337.77
4 $0.00 $5,926.20 $8,058.00 $8,058.00 $5,925.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 1,267,705.10 $0.00 7.9000 Short $750.00 0 -$12,677.05
5 $0.00 $8,058.00 $10,954.80 $10,954.80 $8,055.00 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 1,731,492.06 $0.00 10.7400 Long $750.00 0 $17,261.22
6 $0.00 $10,954.80 $14,902.20 $14,902.20 $10,957.50 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 2,344,452.09 $0.00 14.6100 Short $750.00 0 -$23,444.52
7 $0.00 $14,902.20 $20,267.40 $20,267.40 $14,902.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 3,203,421.53 $0.00 19.8700 Long $750.00 0 $31,934.87
8 $0.00 $20,267.40 $27,560.40 $27,560.40 $20,265.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 4,335,872.38 $0.00 27.0200 Short $750.00 0 -$43,358.72
9 $0.00 $27,560.40 $37,485.00 $37,485.00 $27,562.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 5,924,798.25 $0.00 36.7500 Long $750.00 0 $59,064.23
10 $0.00 $37,485.00 $50,979.60 $50,979.60 $37,485.00 102.00 75.00 25 1.60469 1.60469 1.61489 1.59719 $ 8,020,240.62 $0.00 49.9800 Short $750.00 0 -$80,202.41
11 $0.00 $50,979.60 $69,329.40 $69,329.40 $50,977.50 102.00 75.00 25 1.61219 1.60719 1.59699 1.61469 $ 10,958,055.43 $0.00 67.9700 Long $750.00 0 $109,240.70
It is a Custom Tailored Multi-Purpose Self
Hedging EA for MT4
Capable of performing All the
functionality exposed so far in this
presentation…
The first one is called Top Satellite and its initial trade direction is always Short.

The second one is called Bottom Satellite and its initial trade direction is always
Long

Usually they start simultaneously as Market order at the current BID and ASK in
the same lot sizes or they can be launched as Pending orders at specific Price
levels.
Hedged Long

Current ASK Market Order

Main Top Satellite
SPREAD

Market Order Current BID Main Bottom Satellite

Hedged Short
Each one of the Main EAs contains in itself 11 autonomous Slave counter balancing
EAs, providing the multiple legs in the Hedging execution sequence.

A single chart is allocated for each Master or Slave EAs.

 Main Top Slave 2 Main Top Slave 3
Main Top Satellite
Satellite Satellite

Main Top Slave 4 Main Top Slave 5 Main Top Slave 6

Satellite Satellite Satellite

Main Top Slave 7 Main Top Slave 8 Main Top Slave 9

Satellite Satellite Satellite

Main Top Slave 10 Main Top Slave Final Main Top Slave
Satellite Satellite Equilibrium Satellite
Each Master Main EA has a second mirror image EA, called Top Satellite 2 and
Bottom Satellite 2.

They are positioned as Pending orders, a certain distance away from their
respective Main EA entry points.

Their direction is against its Main EAs direction.

 Market Order Main Bottom Mirror Slave Satellite
initial Hedge position

Main Bottom Mirror Satellite

Pending Order Main Bottom Satellite Profit Target

And
Main Bottom Mirror Satellite Entry Point
Market Order
Current ASK
Main Bottom Satellite

Market Order Main Bottom Satellite Slave

initial Hedge position
 Market Order Main Top Slave Satellite
initial Hedge position

Main Top Satellite

Current BID
Market Order

Pending Order
Main Top Satellite Profit Target
And
Main Top Mirror Satellite Main Top Mirror Satellite Entry Point

Market Order Main Top Mirror Satellite Slave

initial Hedge position
Each one of the Mirror Main EAs contains in itself 11 autonomous Slave counter
balancing EAs, providing the multiple legs in the Hedging execution sequence.

A single chart is allocated for each Master or Slave EAs.

 Main Top Mirror Main Top Mirror Slave Main Top Mirror Slave
Satellite 2 Satellite 3 Satellite

Main Top Mirror Slave Main Top Mirror Slave Main Top Mirror Slave
4 Satellite 5 Satellite 6 Satellite

Main Top Mirror Slave Main Top Mirror Slave Main Top Mirror Slave
7 Satellite 8 Satellite 9 Satellite

Main Top Mirror Slave Main Top Mirror Slave Main Top Mirror Slave
10 Satellite Final Satellite Equilibrium Satellite
 Hedged Market Order

Main Bottom Mirror Satellite

Hedged Market Order Pending Order

Current Market Order

Main Top Satellite ASK
SPREAD

BID Main Bottom Satellite

Current Market Order

Pending Order Hedged Market Order

Main Top Mirror Satellite

Hedged Market Order

The Ultimate Financially Engineered
Market Neutral Money Making Machine!
The Trading System is a novel fully automated Meta-Trader 4
based Expert Adviser, which can be defined as:
• Autonomous
• Adaptive
• Self Priming
• Bi-Directional
• Asymmetrical
• Double-Crossed
• Price Action Fronting
• Trending & Bracket Market Enabled
• Widened Spread Protected
• Entry & Exit Slippage Compensated
• Custom Dynamic Ratchet Trailing Enabled
• Ultra High Frequency Scalping Enabled
The Trading System is a novel fully automated Meta-Trader 4
based Expert Adviser, which can be defined as:
• Autonomous
• Adaptive
• Self Priming
• Bi-Directional
• Asymmetrical
• Double-Crossed
• Price Action Fronting
• Trending & Bracket Market Enabled
• Widened Spread Protected
• Entry & Exit Slippage Compensated
• Custom Dynamic Ratchet Trailing Enabled
• Ultra High Frequency Scalping Enabled
Say Good Bye to All
• Forecasts
• Presages
• Predictions
• Gut-feelings
• Perceptions
• Intuitions
• Expectations
The strategy boils down to its advanced,
high speed, asynchronously hedged order executions
on both sides of the market, in the same instrument,
so that it keeps the trader in the trade up to 12 times,
rather than having him taken out on a stop loss.
To achieve this, the system opens new consecutive
orders in the opposite direction of its preceding trade,
with a lot size calculated in such a way,
so that when one out of the dozen trades reaches its
profit target, the actual profit amount gets stripped from
all prior losses and commissions, thus
delivering a desired, user specific net positive profit.
Each time a trader executes an order, his odds of winning to losing
are 50/50.

The ZennerGUN Strategy can be viewed as a Trading Chance

Amplifier, as it takes an initial trade with a 50/50 odds of winning to
losing and in the course of 10 Counter Balancing order executions,
it arrives at 91/9 chance of winning to losing, while retaining the
original desired profit target size.

A final equal and opposite trade is placed after the end of the series
of multiple aggregated consecutive orders, capping it into a
neutralized balanced hedge, where there is no further gain or loss
accumulation, and trading could be continued manually by the
account manager…
Lot sizes above represent “theoretical” numbers, when Risk/Reward ratios are 1 to 1
and an absolute “Double Up” is required to counter-balance. In reality the
Risk/Reword ratio can be set to 1 to 2, and 1 to 3, which drastically reduces the lot
sizes required to Counter-balance loosing trades…
Hedging Sequence: Targeting $6 profit on each subsequent leg

1. 0.1 Lots Short for 6 pip Profit Target 6 pip Stop Loss
2. 0.2 Lots Long for 6 pip Profit Target 6 pip Stop Loss
3. 0.6 Lots Short for 4 pip Profit Target 6 pip Stop Loss
4. 1.5 Lots Long for 4 pip Profit Target 6 pip Stop Loss
5. 7.5 Lots Short for 2 pip Profit Target 6 pip Stop Loss
6. 30 Lots Long for 2 pip Profit Target 6 pip Stop Loss
7. 40 Lots Short for 6 pip Profit Target 6 pip Stop Loss
8. 160 Lots Long for 6 pip Profit Target 6 pip Stop Loss
9. 320 Lots Short for 6 pip Profit Target 6 pip Stop Loss
10. 320 Lots Long Equilibrium Hedge
 INPUT PARAMETERS OUTPUT
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0 $6.00 $6.00 $6.04 $6.04 $6.04 6.00 6.00 0 1.60413 159.249 159.309 159.189 $ 16,041.30 $0.00 0.1000 Short
1 $6.00 $12.04 $12.09 $12.09 $12.09 6.00 6.00 6 1.60473 159.309 159.249 159.369 $ 32,094.60 $0.00 0.2000 Long
2 $6.00 $24.13 $36.26 $36.26 $24.18 6.00 4.00 6 1.60433 159.249 159.309 159.209 $ 96,259.80 $0.00 0.6000 Short
3 $6.00 $60.39 $90.66 $90.66 $60.44 6.00 4.00 6 1.60473 159.309 159.249 159.349 $ 240,709.50 $0.00 1.5000 Long
4 $6.00 $151.05 $453.29 $453.29 $151.10 6.00 2.00 6 1.60453 159.249 159.309 159.229 $ 1,203,397.50 $0.00 7.5000 Short
5 $6.00 $604.34 $1,813.16 $1,813.16 $604.39 6.00 2.00 6 1.60473 159.309 159.249 159.329 $ 4,814,190.00 $0.00 30.0000 Long
6 $6.00 $2,417.50 $2,417.54 $2,417.54 $2,417.54 6.00 6.00 -6 1.60533 159.249 159.189 159.309 $ 6,421,320.00 $0.00 40.0000 Long
7 $6.00 $4,835.04 $4,835.08 $4,835.08 $4,835.08 6.00 6.00 6 1.60473 159.189 159.249 159.129 $ 12,837,840.00 $0.00 80.0000 Short
8 $6.00 $9,670.13 $9,670.17 $9,670.17 $9,670.17 6.00 6.00 6 1.60533 159.249 159.189 159.309 $ 25,685,280.00 $0.00 160.0000 Long
9 $6.00 $19,340.29 $19,340.34 $19,340.34 $19,340.34 6.00 6.00 6 1.60473 159.189 159.249 159.129 $ 51,351,360.00 $0.00 320.0000 Short
Leg number 6 and 7 are pointing in the same directions, as
leg #7 is attempting to capture profit in the channel that has
been generated by the previous 6 trades, 3 on the long
side and 3 on the short side.
This builds the foundation for the assumption, that the
market is moving sideways.
In such conditions, the tops are being shorted and the
bottoms are being bought.
https://docs.google.com/file/d/0BziL_XM2TaNWbjdaTTJ2ZzNTRWs/edit
The EA get encapsulated itself into an Equilibrium Hedged
position, which can be untied manually in one final trading
direction, by cutting one leg at a loss and letting the other side
run for twice the distance between the hedged positions, or
aim to exit at break even…
By removing the TP target of the Final EA (with no SL in place), and entering a
Neutralizing, equal and opposite position with no TP and SL as well.
In this way the existing loss floats in the market freely, without the need to RISK
and immediately take a loss at the current time.
You wait and buy time for the Market to pick direction and move out of its
current location, before proceeding further with untying the Equilibrium hedge
in one direction or the other, according to Market footprint…
 10

Loss Remains the Same at

this Price Level

10
+25 pips
10

Encapsulated Loss -$1000

10
-50 pips
10

Loss Remains the Same at

this Price Level

No TPs & No SLs 10

 (2) Pays off previous losses & takes Profit

(1) Pays off Short

Equilibrium Hedge RANGE

Cut off the Short Leg of the Equilibrium Hedge after the market has
picked direction on the Long side, and you expect the movement to
continue...
Let it RUN for twice the distance between the hedged positions
 Equilibrium Hedge RANGE

(1) Pays off Long

(2) Pays off previous losses & takes Profit

Cut off the Long Leg of the Equilibrium Hedge after the market has picked
direction on the Short side, and you expect the movement to continue...
Let it RUN for at least twice the distance between the hedged positions
The Story of What it represents?
This video demonstrates how the ZennerGUN Expert Adviser has entered into an original short
position, (visually represented by red arrow on the chart) with a preset target 15 pips away on the
down side (visually represented by a yellow line at the bottom)
After a multiple up and down jitters, the market rips through its stop loss/reversal level 15 pips
away in the opposite direction (up side), where a new counter-balancing long order gets
calculated and executed on the fly (visually represented by a green arrow) with a lot size adjusted
to compensate for prior losses and commissions including slippage.
This time the long trade reaches its profit target by design,15 pips away on the up side, relative to
its initial entry point (visually represented by a green arrow) - takes profit at the trailing trigger
price level (visually represented by a yellow line at the top) and automatically re-runs itself from
the beginning, by opening a new short position…
If the directional move had continued upwards, a dynamic position trailing would have occurred
from that price level upwards, increasing expectations for actual profits…
https://youtu.be/ONfeHKq2dOY
Step 1 – Initial Short Trade (RED arrow)

Profit Target 15 pips below

(Yellow Line below RED arrow)
Step 2 – Stop Level of original trade reached
Exit loosing trade
Enter counter-balanced hedged Long position (GREEN arrow)
15 pips above the initial entry (RED arrow)

Profit Target 15 pips Above Hedged position

(Yellow Line above GREEN arrow)
Step 3 – Take Profit & Exit counter-balanced hedged Long position
(GREEN arrow) 15 pips above it
(Yellow Line above GREEN arrow)
Step 4 – Enter into a new Initial Short Trade (RED arrow)

Profit Target 15 pips below

(Yellow Line below RED arrow)

New Counter-balancing Long Hedge position (GREEN arrow)

established 15 pips above current entry (RED arrow)
NEVER EVER MISS A SINGLE CHANCE TO TAKE A PROFIT …
There is a way in which 4 Automated Trading Software Systems can be
arranged to work concurrently in such a way, that at all times one part of
the system produces direct profit, while the others coil up and get ready to
produce profit on the next swing of the market.
The ZennerGUN Z4 consists of 4 (four) antagonistically situated Master EAs, each one of them
containing up to 12 Slave EA, interwoven in such a way, so that regardless of what direction the
markets decide to go, it always crosses through the grid space of one of the 2 (two) Main EAs,
which will take an immediate profit at that time, while its counter image EA will temporarily lose,
as it coils up to make a profit in one of the following steps/moves in the Market.
The Main Long & Short TARGET Eas get executed as Market orders at the London’s Session
Open.
At the same time, their corresponding Satellite Image EAs get activated as Pending Orders at
one target distance away in the respective opposite directions.
In this way a GRID is being laid in front of the Market’s path, triggering one of the corresponding
EA, once the Market enters its territory.
From the figure above we can see how the 2 Main and 2 Satellite EAs cover 8 static grid cells,
which trip the price action, should the market cross its territory.
Usually the Main Long and Short EAs get executed at the same time on the current BID and
ASK, TARGETING 30 pip profit both up and down.
In contrast the Satellite Long and Short EAs get executed as Pending Orders 30 pips away
from the Main EAs entry or at the same level where the Main EAs Profit Targets are situated.
So that when one of the Main EAs exits with profit, the Satellite EAs become active market
orders and begin to work in their respective opposite directions.
This is one of the most attractive modes of operations, requiring the
utilization of least financial resources to achieve it goals.

The strategy can be used as an insurance policy against potential risk

from stop outs, for manually trades initiated by traders on technical signals
that have gone bad.

Viewed as an Exit Strategy, it increases the chance for exiting a initial

loosing trade at

• Break Even
• At some fractional desired profit target
Second option is to manually execute multiple hedged trades on various price levels
based on market's own footprint

Suggesting Change in Market’s Direction

• Support and Resistance Levels
• Daily Pivots
• Fibonacci Retracements
• Crossing Moving Averages
• Any Other Wild Technical Condition that can affect the Market one way or the other
Thus should one of the12 possible trades turns profitable by reaching its profit target, it
will successfully offset all incurred prior losses and commissions and still produce net
profit on the same initial trade.
This method is totally Hands Off

Trader sets the system in auto repeat mode and let it hedge itself in a specific Hedging
Pattern Sequence or Range, until it takes profit on one side or the other, out of 12
possible tries…

The User can preset the Time at which the system will launch its first trade as well as set
the time for exiting its last trade, thus preventing itself from trading during the dead times
after the close of New York or before the London Open for example…

The EA can be set to launch ONLY if a certain price level is being reached regardless of
timing…
EA can use both Market and Pending Orders pegged to
specific predefined price levels

When using Pending Order

• Take Profit Target Levels are Visible
• Stop Out Level are Visible (for One-Trade-One-Direction-Only setups with US Brokers)
When using Market Order
• Take Profit Target Levels are Stealthy – InVisible to the Broker
• Stop Out Level are Stealthy – InVisible to the Broker
Thus Broker can’t chase TPs & SL as he is unaware where those actual price
levels are set to be…
EA scans price action 10 times per second, to identify
appropriate levels for exit at a specific profit level or at a
stop loss level.
Exits from an existing position can be executed in two ways
• By a corresponding Close Order in the same size to an existing Market
Order
• As part of the Take Profit or Stop Loss accompanying a Pending Order
The Slippage could be a major factor when profit taking is concerned. The EA
has a built in mechanism to compensate for variable slippage when
calculating counter-balancing hedged positions…
EA can run in Auto-Repeat ON/OFF:

• Single Run Take profit and Exit

• Run Take Profit and Restart from Last Exit

System can be set up to perform Hedged Execution Sequences

comprised from a customizable number of legs, distances between
offsetting positions as well as position lot sizes and directions
EA Supports the following types of currencies:

• US denominated
• Non US denominated
• Crosses like GBP/JPY...
EA is sensible to widened spreads

Extended spread protection freezes EA activity in the event that abnormal

spreads take place (with variable spread brokers). A normal spread size base line
has to be specified per currency pair. The moment it is exceeded, no new
positions get opened until spread normalizes. You can specify if you want to
apply this to exiting a trade on a widened spread. By default I allow exiting a
position on a widened spread but hold off from opening the following leg in an
execution sequence, until spread normalizes with its predefined range.

There a brokers who offer FIXED spreads, which could be more desirable
if the broker is STP/ECN not a Market Maker, allows EAs and doesn’t Re-
quote on order execution requests...
EA Protects profits by placing Stop Loss levels in front
of the entry level

Dynamic trailing stops protect initial profit targets once the price level is
achieved, so that if directional move continues, trailing gets initiated
with variable trailing tails across forthcoming sections in front of the
track of the trade, as it progresses. The End game is always
desired/predefined profit, stacked on top of extra trailing net profit!
 9
Initial Take 12 Section 3
3
Profit
16
24 Section 2 48
8
84
9
12 3
Section 1
Profit Trailing
Protection 36 PROFIT RANGE Trigger
Entry Point
Price Action Script
https://drive.google.com/file/d/0BziL_XM2TaNWTDdrVW03RkViMlk/edit
Active Chart Looks and Feel
https://docs.google.com/file/d/0BziL_XM2TaNWVHBBcTBWSVpqZWc/edit
The Big Picture - Before and After
https://docs.google.com/file/d/0BziL_XM2TaNWX0daM0hjeVNZVHc/edit
Anatomy of a ZennerGUN
https://docs.google.com/file/d/0BziL_XM2TaNWclJvQTZtbThHZHc/edit
Game Plan
https://docs.google.com/file/d/0BziL_XM2TaNWcUJpaTVCbHIxV28/edit
Unemployment Claims - Before and After
https://docs.google.com/file/d/0BziL_XM2TaNWbmhQR3VyTzZQOU0/edit
Real Trading Account Performance - $20K in 1 month
https://docs.google.com/file/d/0BziL_XM2TaNWU3Q2cnZDZG95Z2M
Execution Patterns in Hedging
https://drive.google.com/file/d/0BziL_XM2TaNWRDJmaU1nSF9KTFE
Contact: tom.brown@zennertrading.com
Tel. (310) 356-9909