Forex Strategy Master trading system: Quick Trader strategy (part 2)
Третья статья из цикла, посвященного системе торговли Forex Strategy Master (перед изучением данной стратегии настоятельно рекомендуем ознакомиться с предыдущими статьями из этой серии). Здесь будет рассказано о второй стратегии — Quick Trader, в основу которой заложены принципы системы Power Trader (с небольшими изменениями).
Articles of the series devoted to the Forex Strategy Master trading system
- Forex Strategy Master trading system: filter of potentially losing trades
- Forex Strategy Master trading system: Power Trader strategy
Detailed algorithm when working on a downtrend
Step 1
On the higher timeframe (M15) the right fan should be formed moving averages (3 EMA below 5 EMA, 5 EMA below 15 EMA, 15 EMA below 45 EMA) and both bar indicators should turn red.
Step 2
The price should touch the 3 EMA on the high TF.
Step 3
Switch to a lower timeframe (M5) and check the position of the price relative to the fan of averages.
Step 4
We expect a signal to open a long position on the low TF. Should form a candle with the closing price below the 5 EMA, and both bar indicators should be colored red.
Step 5
Проверяем на старшем ТФ присутствие медвежьих настроений (5 EMAниже 15 EMA, 15 EMAниже 45 EMA, и оба столбиковых индикатора — красные).
Step 6
On the low TF, we determine the level of the stop (by the nearest local maximum or by the average; the algorithm is the same as in the Power Trader strategy).
Step 7
Open a position.
Step 8
We measure take profit (usually in the ratio of 1:1 to the stop).
Step 9
Continue to manage the position (the algorithm is the same as in the Power Trader strategy).
Step 10 (optional)
If necessary, we use a trailing stop.
Some special features when working with a strategy Quick Trader
As mentioned earlier, once the price touches the 3 EMA and switches to a lower timeframe, it is often between the 5 EMA and 15 EMA.
Knowing this pattern, we can trade the strategy without switching to a higher TF. That is, we simply wait for the price to be between the aforementioned averages (in the working TF), and then enter the trade when there is a candle with the closing price above/below (depending on the trend direction) the 5 EMA.
When working according to the simplified algorithm, the following should be taken into account:
On the lower TF, during the price entering the space between the moving averages, the bar indicators should not be colored in the opposite direction (on the uptrend - to red, on the descending one to green). The exception is the appearance of one or a pair of gray bars.
The moving averages should be placed in the correct order on the lower TF. In an uptrend the 5 EMA should be above the 15 EMA, in a downtrend it should be below.
By sticking to these recommendations, you will be able to filter out most losing trades.
Download templates and indicators of the Forex Strategy Master system