Forex Profitability Code Trading Strategy (Part 1)
Forex Profitability Code trading system is a powerful trading strategy, which showed itself well on a demo account and in the contest for traders. According to the results of the contest system outperformed by about 4 thousand other systems, showing an increase of 100.99% for a month.
This system can be regarded as quite advanced, which is ideal not only for traders who already have experience in the market, but also for beginners.
The trading strategy uses Fibonacci gridsThe system is designed for intraday trading, but it can be adapted to trade on any timeframe and any currency pairs available to the trader. The system is designed for intraday trading, but it can be adapted for trading on any timeframe and any currency pairs available to trader. Ratio risk/profit in the trading system is 1:2. The trading strategy is conservative, and your risks are quite small. Forex Profitability Code is a trend following and breakout system, the main principle of which is that the trader always trades in the direction of the trend and is on the "right" side of the market (for this purpose analyzes the older timeframe).
Trading strategy settings:
- Currency pairs: any.
- Timeframe: any.
- Bidding time: any.
- Risk Management: After calculating the stop-loss, choose such a volume of the lot that the risk was no more than 2-5% of the deposit per trade.
Setting the system indicators:
- Unpack the archive with the template.
- Copy the template into the templates folder.
- Restart the terminal.
- Open the chart of the desired currency pair.
- Install a template called ForexProfitabilityCode on it.
The schedule should look like this:
Next, we consider intraday trading (working timeframe M15).
Algorithm of actions when making a purchase:
1. Switch to the D1 chart and mark the data interval for the previous month.
If the opening price of the previous month is lower than the closing price of the previous month, pull the Fibonacci grid from the bottom up.
If the opening price of the previous month is higher than the closing price of the previous month, stretch the Fibonacci grid from top to bottom.
In the picture below, we can see that the opening price of the previous month is lower than the closing price of the previous month, hence, we are stretching the grid from the bottom up, from the minimum price of the month to the maximum.
If you are using a monthly chart, look at the previous completed candle. The picture below shows a monthly EUR/USD chart.
If bull candle, stretching the Fibonacci grid from bottom to top.
If bear candle, stretch the Fibonacci grid from top to bottom.
The picture below shows that the opening price of the candle is lower than the closing price, i.e. the candle is bullish. Consequently, we stretch the grid from the bottom to the top.
2. Let's switch to the H4 chart and mark the data of the previous week.
If the opening price of the previous week is lower than the closing price of the previous week, pull the Fibonacci grid from the bottom up.
If the opening price of the previous week is higher than the closing price of the previous week, stretch the Fibonacci grid from top to bottom.
You can also use the weekly chart to stretch the Fibonacci grid. In this case, just look at the previous candle.
If bull candle, stretching the Fibonacci grid from bottom to top.
If bear candle, stretch the Fibonacci grid from top to bottom.
In the picture below, we see that the opening price of the previous week is higher than the closing price of the previous week, hence, we are stretching the grid from the top down, from the maximum price of the week to the minimum.
Note: The weekly Fibonacci grid does not take into account the 23.6 and 38.2 levels.
3. Switching to the M15 chart to find an entry point to buy.
4. Wait for the candle that closes above the red moving average.
5. Wait until the candle closes above one of the Fibonacci levels.
In the picture below, we can see that one of the candles closed above the red moving average, and after a while another candle closed above the 61.8% of the Fibonacci grid.
6. If both of the above conditions are met and the Williams % R indicator curve is above the 50 level, we open a buy trade when the next candle starts to form. Stop Loss set 27 points below the Fibonacci level, which was broken by the candle. Take Profit is set at a distance of 45 points from the opening price of the trade.
