Trading strategy "Draga"

Draga - that

- A floating structure equipped with numerous scoops to lift rocks containing gold or other minerals from the bottom of reservoirs.
- Dredging machine for deepening the bottom of reservoirs.
- Hydrological device for extracting plants and animals from the bottom of deep reservoirs.

As we can see, the tool "Draga" involves excavation, obviously and Draga trading system will offer us something to seriously investigate. This trading strategy is mainly focused on medium-term trading, but with a good skill, it can be successfully used for intraday trading.

Analysis of the relative strength of currency pairs in the trading strategy

The basic trick trading strategy Dredge is a study of multiple currency pairs with one identical currency in order to identify who in the asset of interest is rising or falling. In other words, a set of currency pairs with one common currency, in one working window, is taken. A large selection of pairs is required. To determine the relative strength of a currency, it is necessary to identify whether the currency is bullish or bearish relative to a basket of other currencies.

Here is an example. Consider the EURUSD currency pair. For the study, let's take many pairs with the euro - EURAUD, EURCAD, EURCHF, EURGBP and EURJPY - and see how they behave in the market.

- EURAUD - the euro is rising;
- EURCAD - upward movement;
- EURCHF - in the flat;
- EURGBP - the pound is growing;
- EURJPY - in sideways movement.

Not much, but the growth of the euro prevails, so the analysis regarding the strength is inclined to buy EURUSD. However, the given trading strategy It should not be used as the main one, it is better to use it as a system of additional technical analysis. In addition, for a clear understanding of the direction of the currency, we should take the daily timeframes starting with H4.

This strategy is very complex and requires constant attention from the trader. We advise to apply it only to market professionals.