Inverse Stochastic trend trading strategy
Inverse Stochastic trend trading strategy - is a simple system based on just two technical indicators. The strategy uses "inverted" settings of overbought and oversold levels Stochastics.
Input parameters
- Currency pairs: EUR/USD, GBP/USD, USD/CAD, NZD/USD, AUD/USD, GBP/JPY, GBP/CAD, GBP/NZD, USD/CHF, EUR/JPY, EUR/NZD, USD/JPY, GBP/CAD
- Time frame: M30
- Bidding time: any
- Risk management: after calculating the stop-loss, choose this lot sizeto risk no more than 2-5% of the deposit per transaction
Used indicators
- Stochastic buy sell arrow oscillator (oversold level 15, overbought level 85, 5,3,3)
- Precision trend (30 period, sensitivity 3.0)
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 up a template named Inverse stochastic Strategy
The schedule should look like this:
Signals indicating the opening of a long position
- an up arrow appeared;
- bar of the Precision trend indicator in blue.
Signals indicating the opening of a short trade
- a down arrow appeared;
- bar of the Precision trend indicator in red.
Setting Stop Loss and Take Profit Orders
- stop-loss is set 10-20 points above/below the candle, on which the position was opened. Further it is recommended to transfer the order to Breakeven and use trailing stop.
- Take Profit is set depending on the timeframe and currency pair in the range from 15 to 80 pips.
The advantage of the strategy is a large number of accurate and profitable signals in the presence of a steady trend.
Disadvantage Inverse Stochastic trend trading strategy - The appearance of false signals when the price is in a flat.
Download Inverse Stochastic trading strategy template and indicators