123 Pattern Day Trader breakout strategy for intraday trading
123 Pattern Day Trader strategy - is a profitable breakout system based on Price Action 1-2-3 graphical pattern and trend filtering.
Input parameters
- Currency pairs: basic with low spreads
- Timeframe: M5 - M30
- Bidding time: any
- Risk management: choose the volume of the lot, so that the risk was not more than 2-5% of the deposit per transaction
Used indicators
- Day signal arrow
- Day open line
- Day signal ultra filter trend
- Day bar (ADX 14 period and Parabolic Sar 0.2 -0.02)
- Day look (12, 26, 9)
- Day explosion multitimeframe ( for M5 set 15 min, for M15 set 30 min, for M30 set 60, sensitive 150 period)
- 123 pattern V6 (12, 0.4, 1.0 or more aggressively 6, 0.4, 1.0)
Setting up the price chart
- Unpack the archive
- Copy the template into the templates folder
- Copy the indicators to the folder MQL4 -> indicators
- Restarting the terminal
- Open the chart of the desired currency pair
- Install a template named 123 Day Trader
The schedule should look like this:
General rules of 123 Pattern Day Trader trading strategy
It is necessary to enter the market only in the direction of the current trend:
- Rising trend: the price is above the white points of the Day signal ultra indicator
- Downtrend: the price is below the red points of the Day signal ultra indicator
Signals indicating the opening of a long position
- Indicator 123 pattern V6 drew an up arrow
- On the indicator Day signal ultra white dots
- The Day look white bar on the indicator
- On the Day indicator the white bar is above the moving average
Signals indicating the opening of a short position
- Indicator 123 pattern V6 drew a down arrow
- There are red dots on the Day signal ultra indicator
- The Day look indicator has a red bar
- On the Day indicator the red bar is above moving average
Setting Stop Loss and Take Profit Orders
- A stop-loss order is set 5-10 pips above/below the signal bar;
- Take Profit order is set depending on the currency pair and timeframe used. Recommended values - M5: 7-12 pips, M15: 8-15 pips, M30: 15-25 pips.
Please note that the size of stop-loss and take-profit orders are advisory in nature and may vary depending on the currency pair and timeframe. In addition, it is possible to use trailing stop. In this case, the profitability of the strategy may decrease.
123 Pattern Day Trader strategy has simple trading rules, so its use should not cause any difficulties for novice traders.
We recommend you not to open a position before, during or after the release of important macroeconomic publications, and to test the strategy on a demo account before using it on a real deposit.
Download template and indicators for 123 Pattern Day Trader trading strategy
Other popular trading strategies
