SimpleSystem short-term trading strategy based on Parabolic SAR and Heiken Ashi

Simple SimpleSystem short-term trading strategyUsing common and very popular among traders indicators Parabolic SAR and Heiken Ashi, very well proven in many trading strategies.

Strategy input parameters

• Currency pairs: any
• Timeframe: M5
• Bidding time: any
• Risk Management: After calculating the stop-loss, choose such a volume of the lot, so that the risk was not more than 2-5% of the deposit per transaction

Used indicators

• Parabolic SAR Indicator allows you to accurately determine the trend and the moment of closing positions during a market reversal, making it an important component of the trend, intraday trading strategies and strategies for scalping.
• Heiken Ashi indicator  allows you to identify the trend, for which the indicator uses modified candlesticks.

Setting indicators and system template

• Unpack the archive with templates and indicators.
• Copy the indicators to the folder MQL4 -> indicators.
• Copy the template into the templates folder.
• Restart the terminal.
• Open the chart of the desired currency pair.
• Install a template named SimpleSystem.

The schedule should look like this:

SimpleSystem Strategy Trading Signals

The trading strategy of the SimpleSystem is simple, so the absence of such an important element to filter the readings of trend indicators, as oscillatorAccording to ForTrader.org magazine, it is a significant omission of the authors, because it leads to the lack of filtering of false signals in the flat.

Signals indicating the opening of a long position (buying)

• The candlestick broke the upper limit of the Parabolic SAR.
• A local pullback has been formed (and the Parabolic SAR should stay down).
• On a local pullback, at least one red candle should be formed.
• Put pending order on the breakdown of the local maximum.
• We put the stop loss under the nearest local minimum.
• If the Parabolic SAR has moved up during the formation of a pullback, the order is removed.

Signals indicating the opening of a short position (sale)

• The candlestick broke the lower limit of the Parabolic SAR.
• A local pullback is formed (and the Parabolic SAR should remain up).
• On a local pullback, at least one white candle should be formed.
• We put a pending order for a breakdown of the local minimum.
• Stop Loss put over the nearest local maximum.
• If during the formation of a pullback Parabolic SAR has moved down, the order is removed.

Advantages and disadvantages of the SimpleSystem strategy

It is worth noting that the trading strategy SimpleSystem has its own advantages and disadvantages.

The advantage of the SimpleSystem trading strategy is the use of Parabolic SAR and Heiken Ashi indicators. Indicators are not the author's, and at the moment there are a lot of their modifications, the use of which affects the profitability of trading for the better.

Another advantage is the short-term strategy, which allows you to use it not just as a strategy, and to trade short-term binary options with an expiration time of up to 15 minutes.

The disadvantage - trading on such a short time interval, as M5, significantly increases the psychological burden on the trader, leading to errors. Another disadvantage - the use of only trend indicators in the strategy, whose signals are not filtered, which leads to a knowingly unprofitable entries into the market. However, according to ForTrader.org experts, this problem can be easily solved by adding an oscillator to the strategy indicators.

Download templates and indicators

Other trading strategies using Parabolic SAR and Heiken Ashi indicators