Forex Dynamite Trend Trading Strategy
Trend Trading Strategy Forex Dynamite - two-screen trading system, the essence of which is to trade from the pullback to the trend of a higher timeframe. The author of the strategy is varun76, you can join its discussion at forexfactory.com in two threads at once: here и here.
Input parameters
- Currency pairs: any.
- Timeframe: any, but most effectively the system showed itself in a combination of H4 and H1
- Bidding time: any.
- Risk Management: After calculating the stop loss, choose this lot sizeto risk no more than 2-5% of the deposit per trade.
Used indicators
- Moving Averages: 34 SMA, 55 SMA, 200 EMA
- Stochastic - 10,3,3
- Zigzag - 12,5,3
Setting up the price chart
- Unpack the archive.
- Copy the template into the templates folder.
- Copy the indicators to the folder MQL4 -> indicators.
- Restart the terminal.
- Open the chart of the desired currency pair.
- Install the template with the name Fx dynamite.
The schedule should look like this
Signals indicating the opening of a long position (buying)
- On the H4 timeframe a maximum and a local minimum were formed. At the same time Stochastic is in oversold area.
- On the H1 timeframe, the price has broken all the moving averages from the bottom up. It is desirable that the red and blue moving averages are above the black.
- A stop loss is placed under the nearest local minimum.
Example of a long deal
Signals indicating the opening of a short position (sale)
- On the H4 timeframe a minimum and a local maximum were formed. At the same time Stochastic is in overbought area.
- On the H1 timeframe, the price has broken all the moving averages from the top down. It is desirable that the red and blue moving averages were below the black.
- The stop loss is placed over the nearest local maximum.
Example of a short transaction
According to the experts of fortrader.org magazine, the advantage of Forex Dynamite trading strategy is the use of classic indicators that even novice traders know how to work with. More experienced traders can experiment with replacing them with more advanced modifications, which should have a positive effect on the effectiveness of the strategy.
It is important for the Forex Dynamite strategy to trade in the direction of the trend. The main thing is not to miss the signs of its reversal, so as not to get a loss on the open position 😉
Download Strategy Template and Indicators
Other trending strategies
Good strategy, I love everything related to stochastics.
When trading along the trend with Forex Dynamite, the main thing is to open a position in time and put a stop loss.
The zigzag is only for trend highlighting, but the main signals come from the moving average and Stochastic.
Only about Zig zag I did not understand, it is drawn after the formation of a local minimum, and here the price was before the Zig zag drew the minimum. Or did I not understand?
Is there any data on the percentage of successful trades on EUR/USD? Can this strategy be applied to the day? I think trading on the daily is more stable even though there are less trades.
You can, why can't you? The larger the time frame, the less likely the trend will change.
What's the stability?) Have you tried trading at night, when everyone and everything is asleep, and you go out and collect the money in a bag))
Sonja When it's nighttime in New York, the day is in full swing, and when you wake up the Japanese are already finishing the day's trading. Here's the money in the bag - it's a dream ))
There are no words, what kind of strategy is this with the hourly schedule?
Easy strata, clear rules, clear signals, a minimum of indicators, what you need for technique.
There are so many indicators. Which one is the most informative?
You have to use all of them at once, and open a buy or sell position when most of them - it will show.
I don't understand why I have to use several indicators? Even with a single indicator "Moving Averages" you can see the entry points on the chart.
The strategy is as simple as a stool, but the profitability is good.
Of all the indicators, I liked the zigzag indicator.
The strategy is simple and clear, there are clear rules, everything you need for normal trading.
Now the euro has reached its high for 2 weeks, where will it go? Up or down?
Simple strategy, tied to the indicators, easy rules.
You should always look at several indicators at once.
I'll take a note, a simple indicator strategy.
Clear strategy, concerning market entries. There is no word on how to close trades......) Explain, someone...)
The strategy says that trades are closed by a stop loss. For profit you can choose yourself - the standard amount of pips, by the reverse signals of the indicators... there is a field for thinking and trying.