Stable trading strategy on ATR and ADX

This is an indicator trading strategy, which, according to the author, is generally stable, providing average profitability over a short period of time. As working indicators we use standard ATR (11), on which the MA (21), and the ADX (14) are superimposed. The Swing zzz indicator is also used for clarity, but it is not used in our work. You can download the indicator at the end of the article.

As the trading time we choose an active daytime: from 8:00 GMT +0 at the opening of London to 21:00 GMT +0 at the closing of New York.

Rules of the trading strategy

Buy signal appears when the following conditions are met:

The ADX is above 25;
The ATR indicator is above the MA;
3. +DI crosses -DI.

Buy signal
Buy signal

Stop Loss set at the minimum of the last candle + 2 pips, if the resulting stop is less than 10 pips, then increase it to 15 pips.
Take Profit set the level at 20 pips. You can also try to use a trailing stop.

Sell signal appears when the following conditions are met:

1. ADX indicator is above the 25 mark;
The ATR indicator is below the MA;
3. -DI crosses +DI.

Sell signal
Sell signal

Download Strategy Indicators

 

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