Greetings, dear readers of ForTrader.org. Today I would like to review with you one of the most popular trend strategies "Radar". The trading system has a bright graphic load on the terminal screen, but I can confidently say that after reading the further instruction you will be able to easily apply it in your activity. "Radar" strategy is recommended to use on timeframes M30 and H1.
Installation of the "Radar" trading system
To install the system you need to download the archive with indicators and template, unzip it and install it in the standard way. To do this, open your trading terminal, go to the File-Open Catalog tab. See the screenshot for details:
Next, open the MQL4 folder, drop the indicators into the Indicators folder and the template into the templates folder. After installation, go to the terminal, click on the screen, select the Template section, then the name of our trading system. Let's look at the example in detail:
If you have done everything correctly, your trading terminal should look something like this:
- StochHistogram is a variation of the standard one Stochastic oscillator with parameters 14,3,3. Parameters can be changed, taking into account that a fast Stochastic will lag less, but will increase the number of false signals.
- Daily_Open - displayed as a green line and acts as a trend filter.
- Radar Signal - is displayed as a yellow line and indicates the entry line and probable target. In addition, the price chart displays readings of the most common indicators.
Trading signals of the "Radar" strategy
The signal to buy is the simultaneous fulfillment of three conditions:
- The bar of the StochHistogram indicator should be green.
- The price should be above the Daily_Open indicator (green bold line).
- The general trend on the informers in the left corner should be to buy.
You can enter a position only at the close of the bar, as Stochastic is inherently overdrawing.
A combination of these conditions serve as a sell signal:
- The bar of the StochHistogram indicator should be red.
- The price should be below the Daily_Open indicator (green bold line).
- The general trend on the informers in the left corner should be for sale.
I would also like to note that the Radar indicator gives an entry line, but sometimes it lags, so actively look at the chart.
Manipulation, setting stops
This strategy is as low-granularity as any, so it is necessary to adherence to mani-management rules. As the classics of trading say, the risk per position should not exceed 1-3%. I recommend placing stop orders at local minimums and maximums, support and resistance levels.
An example of a stop order is indicated by the yellow line. For those people who do not see local minima and maxima, I advise you to use the fractal indicator, it clearly indicates such levels. Exit the position when the opposite signal appears on Stochastic, but again on the closed bar.Also the indicator draws a red zone where you can put a stop, but as for me the stop is often too big, so it's up to you.
Subjective opinion of the author
In my opinion, the strategy "Radar" is quite a simple trading system, which can be handled by both a pro and a beginner. I did a visual run of the system in the tester and it left a good impression of itself, but I found one strong disadvantage - it is the appearance of the signal at the peak of the news, that is, the news has already worked out, and the signal just appeared or vice versa. So I recommend you to have a news calendar at hand and take into account when a signal appears - if we are not at the peak. Nobody canceled fundamental analysis.