Triple A Method" trading strategy
Triple A method" trading strategyThe author claims to earn an average of 600 pips per month. In this case, on average, each month there are about 15 trading signals (their profitability varies from 500 to 1500 points).
Marketplace: ;
IndicatorsMoving averages, Bill Williams oscillators, MTF stochastic, Support & Resistance;
Timeframes: H4;
Currency pairGBPUSD;
Strategy: intraday;
Trading lot size: 5 or a multiple of 5;
Protective orders: StopLoss, TakeProfit, Breakeven.
Indicators for the "Triple A Method" strategy:
1) Exponential Moving Average EMA (5) - color blue, apply to Close.
2) Simple moving average SMA (10) - color red, apply to Close.
3) Bill Williams Awesome Oscillator (AO).
4) Bill Williams Accelerator Oscillator (AC).
6) MTF stochastic indicator (10, 3, 3) .
7) indicator Support & Resistance .
Market entry signals in the "Triple A Method" strategy are divided into 2 categories:
1) Basic trading signals;
2) Trading signals for re-entry into the market (they are also 2 types: secondary and tertiary) .
The main trading signals of the "Triple A Method"
Buying deal Open on the opening of a new candle, as soon as the moving average EMA (5) crosses the SMA (10) from below and our two oscillators AO and AC have formed two consecutive bars of blue.
To open a sell deal inverse conditions: crossing moving averages from top to bottom and the formation of yellow bars.
Figure 1. 1 - main signal, 2 - signal type 2 (secondary).
Secondary trading signals to enter the market according to the "Triple A Method" strategy
If the color of the oscillator bars changes to the opposite color that was for the Main trading signal, but the crossings moving averages does not happen, and after that the color changes back to the original color, it is necessary to re-enter the market (if you suddenly closed a position or knocked out a stop loss). These trading signals are relatively rare, but if they appear, they usually have a fairly large potential for profit.
Third-order trading signals to enter the market trading strategy "Triple A Method"
If 1 of the bars of any oscillator changes its color to the opposite of the original, and after that changes its color to the original again (no crossing of the muwings occurs), you should enter the market again in the direction (if you suddenly closed the position or knocked out on a stop loss), identical to the Main signal. Usually these trading signals are very rare, but mostly they give the biggest profits.
Figure 2. 3 - Type 3 signal.
Additional rules for the "Triple A Method" strategy
For conservative traders It is recommended to open trade deals only in the direction of the crossing of the daily stochastics. This rule greatly increases the percentage of profitable trades. Or you can also do the following: if the direction stochastics with trading signals, increase the volume of lot being traded (but this is an optional rule).
Recommended initial stop loss when trading 90-120 pips or you can also set it for the nearest levels support or resistance - blue or yellow lines on the chart.
Profit fixing and rearrangement of stop-losses
1) After a profit of +40 points, we shift the safety StopLoss for the next support or resistance level (if it is less than your StopLoss value).
2) After a profit of +65 - 85 pips, move the StopLoss to breakeven level (+5).
3) When goal #1 is achieved - TakeProfit1 (+100 p) - 1/5 (or 20%) trading position should be closed.
4) TakeProfit2 (+150 p) - close another 2/5 (40% of the original transaction) trading position.
5) TakeProfit3 (+300 p) - close another 1/5 (20% of the original transaction).
6) We close the last 20% after crossing the muwings in the opposite direction, if it did not happen earlier.
Also, if the trend is not that long, then the trade should be closed immediately after crossing the muwings or a stop loss.
Important additions to the trading strategy
1) You should not make a deal after more than 30 minutes have passed from the moment of receiving a trading signal and the price has moved sharply up or down in the direction of the transaction (the maximum allowed number of pips, at which you can make a deal - 20 pips from the moment of receiving the trading signal).
2) You should not make a deal if the daily stochastic is directed to the opposite side from the trading signal or it has just left the zone overbought or areas oversold.
3) If moving average crossing occurs until the moment when the AO and AC oscillators change color, make a deal on the 1st bar of the same color.