Good day, dear readers of ForTrader.org Trader magazine. Today we are going to analyze Strategy Daily and Weekly Open Trading SystemThe system is based on the following formula, but not with standard entry points, as it is presented in the classical variant of the system, but as one of the traders suggested on one of the foreign forums. Why exactly in this version? Yes, because the author has led an entire thread and proved that this version of the Daily and Weekly Open Trading System strategy is more profitable. Unfortunately, I can't give you the link to the forum, because this forum no longer exists.) But take my word for it, the system is worthy of attention, both in its classic version (I will briefly mention it), and in the version that will be described below.
- Currency pairs: any
- Timeframe: H1-H4
- Trading hours: 24 hours a day
- Type of strategy: trending, indicator
Installing the Daily and Weekly Open Trading System strategy
The Daily and Weekly Open Trading System strategy is installed in a standard way. The desktop of your terminal should look like this:
The trading system consists of 12 indicators, six of which influence the decision to enter a position, another one is responsible for money management. All the others are informers. Now briefly on each:
- HApro - this indicator is a revised version of the Heiken Ashi indicator, it looks like a red and blue candles with up and down arrows. Arrows appear when the color of a candle indicator Heiken Ashi changes in the opposite direction. In the settings, you can set the period moving averageThe number of bars on the basis of which the indicator is calculated.
- THV Coral - this indicator is displayed as a line of red and blue. The indicator was pulled from the famous THV system and was created based on a simple moving average. The indicator serves as a filter in the Daily and Weekly Open Trading System strategy: blue line - only buy, red line - only sell. In the settings you can change the period of the moving average depending on your preferences, as well as enable sound alerts when it changes trend.
- Daily and Weekly Open - the indicator draws two dotted red and blue lines. The blue line is formed at the opening price of the day, the red line is formed at the opening price of the week. In the system, this indicator plays the role of a signal indicator, because its crossover (price crossing) forms an entry point.
- Trend combo and Trend scanner - these two indicators are connected in the first additional window, displayed as green and red lines (one as a histogram, the second as bars) and act as filters.
- Fs30 - the indicator is located in the second additional window, in the form of a line of red and green. This indicator is a modification of the standard RSI oscillator. In the settings you can set any period that suits you.
- Strenght - this indicator is located in the third additional window and displays the strength of the trend on the major currency pairs. In the settings you can set the number of bars on the basis of which the calculation will be made.
- LotCalculator - this indicator is in the fourth additional window. It is an assistant for observing the rules of money management.
Signals to open a buy position
We enter a buy position if the following conditions are met at the same time:
- The HApro indicator is colored blue (blue candles).
- The THV Coral indicator line is colored blue.
- Price crosses the Daily and Weekly Open indicator line from bottom to top.
- The bars of the Trend combo and Trend scanner indicators should be green.
- The line of the indicator Fs30 (RSI) should be green.
Some indicators are overdrawing, so enter on a closed bar.
Signals to open a sell position
We enter a sell position if the following conditions are met at the same time:
- The HApro indicator is colored red (candles are red).
- The THV Coral indicator line is colored red.
- Price crosses the Daily and Weekly Open indicator line from top to bottom.
- The bars of the Trend combo and Trend scanner indicators should be red.
- The line of the indicator Fs30 (RSI) must be red.
Some indicators are overdrawing, so enter on a closed bar.
Setting stop orders, exiting a position
Stop-loss is placed in the classic way, that is, at local minimums or maximums. If for some reason you do not know how to find these levels, I advise to go to indicator directory on our website, download the levels indicator and use it to place your stop orders. Exit the position is carried out on the opposite signal of one of the indicators (your choice), or on a given profit. The author recommends a ratio of one to three, for example 10 points stop-loss, profit - 30 points.
In terms of money management, the author has thought it all out and implemented the LotCalculator indicator. This indicator calculates lot depending on the percentage of risk per position. In order for the indicator to calculate the lot correctly, you must go to its settings and in the Stop Loss column specify the number of points. In the working window of the LotCalculator indicator the lot, which is recommended to enter into the position, will be displayed. By default, the risk per position is 3%.
Author's personal opinion
I have been dealing with the Daily and Weekly Open Trading System strategy for a very long time and, judging by the analysis of its performance on historical data, I can only give a positive assessment. The system is based on the breakdown of an important level (the opening price of the day and week), plus a clever filter. Also, very pleased with the indicator-calculator, with which you can quickly calculate the lot (especially useful for beginners). In the standard system the levels indicator is simply left out and the entrance is made by arrows. However, since the arrows redraw, I do not like this variant of work, and I offer an alternative method for entering the market. The Daily and Weekly Open Trading System strategy can be used by both new and experienced traders. Thank you for your attention and good luck with the trend!