Strategy "Zero Level" on the principle of Einstein - 1 000 000$ for 3 years

The basis of Zero Level Trading Strategy Albert Einstein's rule "Make it as simple as possible, but not simpler", combined with a breakdown of "round" levels, is laid down. The strategy does not use a large number of indicators, many of which, in addition, have a tendency to lag, but at the same time it requires attention and discipline, as well as not to be greedy ;-).

Zero Level Trading Strategy Settings

  • Currency pairs: currency pairs with a high Average Daily Range (ADR). For example: EUR/JPY or GBP/JPY.
  • Time frame: M15 or H1.
  • Trading time: the most profitable trading occurs in the first 2 hours after the opening of the trading session (Frankfurt, London, New York).
  • Type of orders: pending orders are used.
  • Risk management: after calculating the stop-loss, choose this lot sizeThe risk should be no more than 2% of the deposit per trade.

Installing indicators and the Zero Level Strategy Template

  • Unpack the archive with templates and indicators.
  • Copy the indicators to the folder MQL4 -> indicators.
  • Copy the templates into the templates folder.
  • Restart the terminal.
  • Open the chart of the desired currency pair.
  • Set the template with the name 00 level trading.
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Fig. 1. Template of the "Zero Level" strategy.

The principles underlying the "Zero Level" trading strategy

  • The "Zero Level" strategy was developed with the following conditions in mind:
  • The system should not be time-consuming.
  • Working timeframe - not below M15 (or H1). The trader should have a comfortable margin of time to check all conditions and set a pending order.
  • Limited set of currency pairs (currency pairs with high ADR are used).
  • The system should not use "lagging" indicators.
  • Quick entry and quick exit.

Step 1: Trade towards the trend

If the price is higher than the opening price of the daily candle upward trendif lower - downward. The trades are opened strictly according to the trend.

Step 2: Trade inside the wave in the direction of the trend

To find the wave, the H1 timeframe is used. If hourly candle of the same color as the day, it is considered that we are inside the wave.

Step 3: looking for conditions to enter the trade

After the price on the H1 and Daily timeframes shows the movement in one direction, we begin to look for the place of installation pending order (a grid of circular levels is used for this).

Trade idea

The idea of trading is fairly uncomplicated. It is believed that the markets begin to move when new funds are injected, which occurs at 2-3 hours trading sessions (the best time to trade).

Suppose the ADR of a currency pair over the past 20 days is 100 pips. If we take the opening price of the day as the midline, the potential movement scenarios (simplified) could be as follows:

  • During the day the price passed the ADR distance above the opening price of the day.
  • During the day the price passed the ADR distance below the opening price of the day.

Although, in fact, such simplified scenarios do not happen very often, understanding this principle helps us in another way. If at the opening of the London trading session the ADR has not changed much, then we still have potential opportunities to make money. On the other hand, if the currency has already passed the ADR distance, no more trades are opened on that day.

Besides, we don't need to take many pips, we don't need to eat the whole pie. We will be quite happy with a small piece of the pie (5 pips per trade).

Plan for the day - to make two profitable trades of 5 points and increase account at 2% (if you steadily make 1% a day, an account the size of 1000$ can be dissolved to 1,000,000$ in three years).

Signals indicating the opening of a long position (buying)

  1. The current price is above the opening price of the day (D1 candle - green).
  2. The current one-hour candle is bullish (also green).
  3. We put a pending order for a breakout of the round level up (Take - 5 pips, Stop - 10 pips).
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Fig. 2. Examples of long deals.

Signals indicating the opening of a short position (sale)

  1. The current price is below the opening price of the day (candle D1 - red).
  2. The current one-hour candle is bearish (also red).
  3. We put a pending order for a breakdown of the circular level down (Take - 5 pips, Stop - 10 pips).
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Fig. 3. Examples of short trades.

Additional recommendations

  • Inside each hour, enter only the first round level (if you missed it, wait for the next hour).
  • During the Frankfurt Sessions, only enter on a breakout of the following levels: .400, .500, and .600.
  • During the London session, we enter on a breakout of any level.
  • It is forbidden to open long positions to break through the .900 level.
  • It is forbidden to open short positions on the breakdown of the level of .100.
  • It is forbidden to trade within an hour before the release of important news affecting the movement of the currency pair.
  • It is forbidden to trade for 30 minutes after the release of important news.
  • After 4 unprofitable trades, trading stops on that day.
  • A higher probability of successful trading - the first hours after the opening of the session.
  • If the currency pair has worked off the ADR, trading stops.
  • If the profit on the account for the day was 2% (which is equivalent to 2 profitable trades without losses), trading stops.
  • Upon reaching a profit on a trade of 3.5 points, stop loss moves to breakeven.
  • Only pending orders are used.
  • Currency pairs with high ADR are traded.
  • One trade per hour on one currency pair.

According to experts of ForTrader.org magazine, the Round Level strategy will be of interest to traders who want to deepen their understanding of the currency market mechanisms. Clear entry rules will make the strategy easy to use for beginners, and the use of pending orders and indicators that are not late will greatly increase trading efficiency.

Download templates and indicators for the "Round Level" strategy 

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