Trending trading strategy Contrast
Trending trading strategy Contrast is based on a combination of three indicators, one of which has the MTF function, which allows you to get fairly accurate signals to enter the market. The main principle of the strategy is to determine the price reversal points within the trend.
Input parameters
- Currency pairs: any, including cryptocurrencies
- Timeframe: M15 and older
- Trading times: London, New York
- Risk management: after calculating the stop-loss, choose this lot sizeto risk no more than 2-5% of the deposit per transaction
Used indicators
- Contrast (coeff 3.0)
- Mistery Data arrow (3.3)
- Contrast MTF
Setting up the price chart
- Unpack the archive
- Copy the template into the templates folder
- Copy the indicators to the folder MQL4 -> indicators
- Restarting the terminal
- Open the chart of the desired currency pair
- Set the template with the name Contrast
The schedule should look like this:
Signals indicating the opening of a long position
- The yellow Contrast indicator line crossed the red line from bottom to top;
- An up arrow appeared;
- At least two bars of the histogram out of four are green.
Signals indicating the opening of a short trade
- The yellow Contrast indicator line crossed the red line from top to bottom;
- A down arrow appeared;
- At least two bars of the histogram out of four are red.
Setting Stop Loss and Take Profit Orders
- stop loss is set above/below the previous local maximum/minimum;
- Take Profit is set by the trend, depending on the timeframe and currency pair. Alternatively, it is possible to close the deal when the Mistery Data arrow appears in the opposite direction.
Recommendations for using the Contrast strategy
Pay attention to one of the conditions for opening positions, namely, the coloring of the bar chart bars in green (for buying) and red (for selling).
The condition for opening a deal "at least two bars of one color" is quite aggressive, so the experts of Fortrader recommend opening a deal when the Contrast MTF indicator histogram is colored not two but three bars. This will significantly reduce the level of risk and the number of false entries.
Before using the Contrast trend trading strategy on a real deposit, be sure to test it on a demo account.
Download Contrast Strategy Template and Indicators
Other profitable strategies for trading
The Support and Resistence with Ribbon strategy for intraday trading
BolliToucher Reversal Trend Trading Strategy for Day Trading