As practice shows, the effectiveness of a strategy does not depend on how many indicators it has or on how successful their formula is. And not even from the settings. A reliable Forex strategy can be based on the simplest basic tools. Here are just one trader, it will work, the other does not. There are no ideal strategies, but in the event of a loss, you should not label a tactic found on the Internet. In many ways, the success of the strategy depends on the trader’s intuition, the speed of decision making, partly luck and a deep understanding of the principles of the market. Do you have it all? Then the next trading tactic is for you!
Reliable Forex Strategy
This tactic is based on one combined indicator, the template of which for MT4 can be found on the Internet for free. It is called jurik BrainTrend1Sig and refers to the switchmen, drawing green or red dots on the chart. It is based on the following indicators:
- ATR – average true range, an indicator that tracks the degree of volatility in the market;
- Stochastic is an oscillator that determines the degree of overbought or oversold market.
The essence of the indicator is an algorithm calculated from the values of the basic instruments with elements of position reversal. As soon as the opposite signal appears, the current position is closed, an order is opened on the opposite signal. The timeframe is H4, the currency pair is EUR / USD.
jurik BrainTrend1Sig settings:
- Enable Alerts = 0. Activating a parameter means writing information about signal points to a file;
- Signal ID = 0. This is a unique number of signals for a currency pair;
- Lengh = 3. Indicator period;
- Price = 0. Type of price at which the values are built (opening price, closing, highest price, lowest price);
- Phase = 5.0;
The remaining 5 settings, indicated by letters, should not worry the trader – these are internal parameters that remain basic.
A reliable Forex strategy involves entering the market with an accurate indicator signal. If jurik BrainTrend1Sig draws a green dot, on the next candle we open a long position, a red dot a short one. An example of a long position in the picture:
Stop loss in both cases put a long – 40-50 points. As soon as the profit reaches 50 points, we transfer the stop loss to the breakeven level. As soon as a point of the opposite color appears, close the position and immediately open the opposite order.
Recommendations to traders:
- the last candle before the weekend and the first candle after the weekend are unstable and unpredictable, trade is not conducted;
- at the time of the release of news on the candle “before” and “after” trade is not conducted;
- If, due to fundamental or psychological factors, one of the candles has a relatively large body compared to other candles, the indicator signal is ignored.
This reliable Forex strategy allows you to earn in the medium term. The number of unprofitable transactions exceeds the number of profitable ones, but the income from successful positions completely covers the loss. Intraday strategy, can be used as the main one. Join the discussion of strategy in the comments!