The Four Lines Trading System represents a new approach to learning the properties of financial markets and to construction of personal trading systems. I would name it "empirical approach" because in some sense it lies somewhere between discretionary (emotional) trading and purely mechanical systems.
       Both of those approaches are inappropriate in real life. Discretionary trading favors to flexibility of trading decisions caused by perception of changes in market sentiment, thus giving many unique successful results, but the profit of such trading is never stable. Uncertainty of trader's behavior multiplied by unpredictable nature of market's movements inevitably results in ruin. From the other hand, trading according to computer system allows to eliminate emotional factor and to optimize trading decisions for particular market, but real statistics of financial markets allows mechanical trading to be profitable only "on a long run" and over a large number of markets in average. However, every trader dreams of trading system which is profitable "here and now".
       The Four Lines System is precise system, in the sense that it consists of a compact set of exactly formulated trading rules. At the same time it is not purely mechanical, as long as it's based on principal concepts of technical analysis which require certain intuition, understanding of psychology of market movements and experience in working with charts. Due to its enough formal nature the System's efficiency (both profitability and possible risk) on particular market may be estimated by historical test and the results of such testing may be directly used to plan the real trading. Simultaneously the process of building the back-test itself is the best way for trader to learn particular market, to understand its behavior. The precise character of System's rules allows trader to control his own trading style and emotional condition during real trading.
       The Four Lines System contains no artificial constructions and does not need computer optimization. It includes only one mathematical indicator: well known and most popular among traders of all markets Relative Strength Index. It is very simple trading system available even for novice trader and it becomes a serious instrument in the hands of advanced trader.
       All constructions of the Four Lines Trading System have universal character; it is purely technical trading system which can be adapted for trading almost any market. However, the main advantage of the System is that it can show stable efficiency in intra day trading on the FOREX market where all common approaches fail.
       Brief exposition of ides of the Four Lines Trading System was published in two articles in Technical Analysis of STOCKS&COMMODITIES www.traders.com (Likhovidov V. [2001]. "The Folding Rule", Volume 19: June; [2002]. "The Four Lines Trading System", Volume 20: January).
       The aim of the proposed course of individual learning and training is to explain the Four Lines System, to give the rules for construction of objective back-test and statistical analysis of test data. During this learning I will send you several clearly formulated tasks, each of them explaining the System's rules or certain step in building and analyzing back-test of the System. After fulfilling all tasks you'll come to know the rules of opening and closing of positions within frames of the System. You'll also learn appropriate money management rules and several possible ways of enhancing performance of the System. Statistical results derived from analysis of test data will give you the complete and precise background for planning of your real trading. I'm also ready to answer all your questions concerning technical analysis and trading systems.
       Here is a brief content of textbook, which also gives some presentation of my course and individual training.

The Four Lines Trading System

          My course for currency traders consists of the following:
       • The student receives my textbook on the Four Lines Trading System (by e-mail);
       • I send special tasks and the student fulfill those tasks one-by-one;
       • I check the results, correct if necessary and give recommendations.
       Of course, during this process the student may also send me any questions
concerning the System, the Forex market, сurrency trading etc, and I try to answer them as soon as possible. As the result of the course the student obtains:
       • training in application of the System's trading rules;
       • the rules of constructing back-test of the System;
       • technique of statistical analysis of the obtained test data;
       • technique (based on statistical test data) of constructing his plan for real intra-day trading;
       • methods of adjusting the System for improving of its performance.

       If you want to attempt FOREX trading, I'm sure it is difficult to find the better approach then the Four Lines. I'm also sure the Four Lines can be adjusted for efficient intra-day trading on other markets.

       Write me if you are interested in this training:
       V.Likhovidov@forexschool.ru
       lita@math.dvgu.ru