Long-term positioning strategy

This strategy is based on the values of two indicators: simple SMA moving average and Stochastic Oscillator. To enter the market, there should be three confirmation signals: the presence of a trade "set", a trade trigger, and a signal from the filter.

Marketplace: Forex;
Currency pairs: various;
Timeframe: Daily;
Indicators SMA and Stochastic Oscillator;
Strategy: long-term;
Protective orders: stop loss.

Rules of the trading strategy

1. Trading Signal - is a pair of bars located close to the SMA(21) moving average. There is a trade signal to buy and to sell. If two candles are above the moving average (it is possible that the closing price of the second candle is below the moving average), then we have a sell trade signal. If two candles are below the moving average (the closing price of the second candle may be above the moving average), then we have a buy signal. Trades are opened only if there is a signal in the direction of the trade opening.

2. Trade Trigger - a combination of two bars where the second bar's closing price is higher or lower than the first bar's maximum or minimum respectively. I.e. if the closing price of the second bar is higher than the maximum of the first bar, it is a buy trigger, if the price of the second bar is lower than the minimum of the first bar, it is a sell trigger.

3. Filter signal. The filter used is Stochastic Oscillator indicator(5, 5, 3). If K% crosses D% from the bottom up, we have a signal to enter the market to buy. If K% crosses D% from top to bottom - a signal to enter the market to sell.

Closing the transaction

4. Safety StopLoss when opening a sell deal - the maximum of the last three trading days.
5. Insurance StopLoss when opening a buy trade - at least the last three trading days.
6. When opening a buy trade, move the insurance StopLoss after each local low.
7. When opening a sell trade, move the insurance StopLoss after each local maximum.
8. Fix profit on the day of closing the bar, the price of which is higher than the maximum of the previous pair (if the trade is open for sale)
9. Fix profit on the day of closing the bar, the price of which is lower than the minimum of the previous pair (if the trade is open to buy).