The Puria method is quite common today – this is Forex scalping strategy. Trading is carried out on a half-hour or hour timeframe (depending on your chosen trading instrument, that is, a currency pair), while the closing level upon receiving a loss is set at 15 points from the opening price, and take profit at 10-25 points (below data for various tools are indicated.)
The following trading pairs are traded on the half-hour frames: AUD / JPY, USD / JPY, EUR / JPY, EUR / USD – take profit on 15 points; GBP / USD, CAD / JPY – take profit on 20 points; AUD / USD, USD / CHF – take profit on 10 points;
At the hourly frames are traded: – EUR / CHF, CHF / JPY – take profit on 15 points – NZD / USD – 25 points; – USD / CAD – 20 points; – EUR / GBP – 10 points.
Tools for Puria Trading The following technical indicators are used for trading in the international currency market using the Puria method: – a slow moving average with a period of 75 and 85 (plotting using a linearly weighted method); – fast moving average with a period of 5 (construction by the exponential method); – MACD indicator (with input values 15.26 and 1).
Signals to open trades Trades are opened at the moment when the fast moving average crosses the slow averages from top to bottom or bottom to top, and the closing level of the candle is above or below it.
So, the signal to open a buy position is: – the intersection of the fast average of two slow averages from the bottom up; – closing the candle above the fast average level; – positive MACD value.
The signal to open a sell position is the intersection of the fast moving average of the slow averages in the opposite direction, the close of the candle below the exponential average and the MACD indicator below zero.
Pros and cons of the strategy From a technical point of view, the strategy may seem rather complicated, but the availability of automated trading systems based on this technique makes it possible to significantly facilitate the trading process only by setting the initial parameters for opening and closing deals.
Plus, the strategies are fairly low risks, since the stop loss level is set close to the level of opening a deal. However, the risks, as with any other scalping strategy, remain quite high.
Among the negative points should be noted the complexity of manual trading, as well as the need to open a large number of transactions, since each transaction brings minimal profit, and to get a good result, you need to close a large number of positions in the plus. However, the strategy, if used properly, quite allows you to achieve this result.