Trending strategy Fisher indicator with Vortex trading system

Good afternoon, dear readers of the ForTrader.org traders' magazine. Today, I will introduce you to a rather interesting strategists Fisher indicator with Vortex trading system. This trading system is actively popular among traders on various forums as a fairly successful experiment, in which the author combined non-standard indicators with classical ones. moving averages. The system, as an experiment of an experienced trader, has caught on among both beginners and experienced traders for a number of reasons:

• the strategy has clear entry points as part of it.
• the strategy clearly finds the trend.
• the strategy has a kind of filter in the form of oscillator.

Input parameters

• Currency pairs: any
• Timeframe: M30-N4
• Trading hours: 24 hours a day
• Type of strategy: Indicator, Trend

Installing the strategy Fisher indicator with Vortex trading system

The strategy template Fisher indicator with Vortex trading system is installed in a standard way. Your terminal desktop should look like this:

Used indicators

Fisher indicator with Vortex trading system strategy consists of four indicators. Briefly on each of them:

• Fisher — индикатор отображается в виде гистограммы красного и зеленого цвета. Fisher - a fairly simple histogram indicator that determines the direction and strength of the trend, as well as signals changes in the trend. Its code does not use any standard MT4 terminal indicators. Fisher bases its calculations on the highs and lows of the price for previous periods, applying complex mathematical calculations to the relationship between the current price and the minimum/maximum. Period (default = 35) - period in bars, on which maxima and minima are calculated.
• MA Crossover Signal - acts as a signal in the trading system and is displayed with up and down arrows. This indicator is very popular among traders who use moving averages. The signal appears (an arrow appears) when two moving averages set in the settings are crossed. This system uses two such indicators - one with fast moving averages (signals appear earlier), the other - with slower ones (signals appear later). This variation is necessary in order not to miss both early signals and already filtered (later ones).
• Vortex — данный индикатор состоит из двух линий голубого и желтого цвета, в системе выступает в роли фильтра. Индикатор Vortex состоит из двух осцилляторов, которые улавливают положительные и отрицательные трендовые движения. В данной системе берется во внимание лишь нахождение линии индикатора над и под сигнальной линией 1.
• Moving Average is a standard trend indicator, is in the MT4 trading platform in the trend indicators section. In this system moving averages act as trend indicators.

Fisher indicator strategy trading signals with Vortex trading system

Before you start working with the system, you must clearly define the current trend. The system has a clear algorithm that must be followed! So, in order to determine the trend, you must look at the moving averages, and if the trend is bullish, then the moving averages should be in the following order: from the top of the muving with a period of 5, then with a period of 7, then with a period of 15 and finally with a period of 40. For an uptrend, the formula is 5>7>15>40. For bearish trend the formula is 5<7<15<40.

All trading is based on this rule, so it is obligatory to follow it, because the trend is your friend, and we are always on our way with it).

Buy signal in the strategy Fisher indicator with Vortex trading system

We enter a Buy position if the following conditions are simultaneously met:

• The trend should be bullish (how to determine the trend is described above)
• The MA Crossover Signal indicator arrow is green (blue) in color and points upwards.
• The Fisher indicator bar is green in color.
• The yellow line of the Vortex indicator should be above level 1

We enter the position on the closed bar, as the Fisher and Vortex indicators are redrawn.

Sell signal in the strategy Fisher indicator with Vortex trading system

We enter a Sell position under the following conditions:

• The trend should be bearish (how to determine the trend is described above).
• The MA Crossover Signal indicator arrow is red (yellow) in color and points downward.
• The bar of the Fisher indicator is red.
• The blue line of the Vortex indicator should be above level 1.

We enter the position on the closed bar, as the Fisher and Vortex indicators are redrawn.

Setting stop loss in Fisher indicator strategy with Vortex trading system

Stop-loss in the strategy Fisher indicator with Vortex trading system author advises to put a stop-loss in the classical way, that is at local minimums and maximums, important levels. For those who do not see local minimums and maximums, I advise you to use indicators of support and resistance levels, Murray level indicator or pivot levels. You can download these indicators in the section indicators for MetaTrader 4.

The author also recommends that the stop loss should not exceed 50 pips, otherwise you should refrain from entering the position.

Moving out of position

Timely exit from a position is no less important than entry. Many traders make the mistake of exiting a position before the time, or later (the price has time to simply turn around and force you to record a minimal profit). To exit a position in time, I offer you two options:

• Exit at a given Take Profit. In our case, we simply put the profit twice as much as the stop-loss (the system is trending, and, sometimes, one profitable deal can overlap 2-3 losing ones), and if the price reaches the set target and above, we simply move the stop-loss to a distance of 15 points from the price. Thus, we can squeeze the maximum out of the market, and in case of failure get a profit 15 pips less than the set one (the average profit on the system is from 60 to 150 pips).
• The second method is based on the inverse crossover of two fast moving charts with period 5 and 7. For example, if you are in a buy position, then the signal to exit the position will be the crossover of the mover with period 7 from top to bottom with the mover with period 5 (the blue line crosses the green one from top to bottom), and if you are in a sell position, then the crossover of the mover with period 7 with the mover with period 5 from bottom to top.

If the first method does not require your attention, and you put a profit immediately upon entry, the second method requires you to be constantly at the monitor. Although the second method can be simplified by adding the MA Crossover Signal indicator, where you set the parameters of moving 5 and 7, and when they cross, an arrow with a sound signal will appear, which will not let you miss the exit point. Everyone chooses the exit method according to his preferences, as they say - to taste and color)

Money Management

Observance of maneuvering is the basis of successful trading. When trading using the Fisher indicator with Vortex trading system strategy, I recommend that the risk per position should not exceed 3% of the deposit. For those who don't know what mani-management is, I advise you to read our articles for beginner traders. You can learn how to calculate the correct lot, what types of manimenjment there are, as well as useful tips that you can't do without.

Conclusion of the author of the article

Personally, I am a fan of trading systems with moving averages, as they are based on a classic indicator, the signals of which are described in many books. The strategy Fisher indicator with Vortex trading system is not very complicated, so I can recommend it to both beginners and experienced traders. Thank you for your attention, and have a nice trend!

Download template and indicators of the strategy Fisher indicator with Vortex trading system

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