This is an interesting modification of the trading strategy, so simple and clear that even a beginner can master it. Like every trend strategy, it has its shortcomings, but this is good, there is something to strive for, and there is something to improve. So, to work we will need:
- Currency pair: EURUSD or similar highly volatile
- Timeframe: Weekly, H1
- Trading hours: arbitrary
- Indicators: NonLagMA, Tema, BumaSoft Higher Candles (updated indicator!), NB i-Breakeven, AverageOrder
- Trading Strategy Template
Upload the files to the appropriate folders and download the template. You will get something similar to this picture:
Rules of the trading strategy
Despite the fact that the author of the strategy proposes to open trades more often, not paying attention to the color of the weekly candle and the location of the price chart relative to it, the magazine ForTrader.org gives its version of this system, wanting to limit the reader from a large number of entries into the flute.
The rules for opening a buy deal:
1. The direction of the deal opening is determined by the previous weekly candle, which is reflected on the chart. If the candle is uptrending (green), we open the transaction only to buy.
2. trade signals are provided by the NonLagMA, Tema, or rather their intersection. If the price chart is below the previous weekly candle and Tema crosses NonLagMA upwards, we open a buy trade.
3. The NonLagMA and Tema indicators are redrawn on the current bar, so ForTrader.org magazine insists on opening a trade only after the signal is confirmed - on a new bar.
4. TakeProfit is set at 60 pips, StopLoss - 20 pips. We also recommend optimizing these parameters for each currency pair separately.
The rules for opening a sell deal are the opposite:
1. The previous weekly candle, which is reflected on the chart, determines the direction of the trade opening. If the candle is descending (red), we open trades only to sell.
2. trade signals are provided by indicators NonLagMA, Tema, or rather their intersection. If the price chart is above the previous weekly candle and Tema crosses NonLagMA downwards, then open a sell trade.
3. it is recommended to open a trade on a new bar.
4. TakeProfit is set at 60 pips, StopLoss - 20 pips. We also recommend to optimize these parameters for each currency pair separately.