Trending strategy Dynamic gains system

Good day, dear readers of ForTrader.org Trader magazine. Today we are going to look at a trending strategy called Dynamic Gains System. This strategy has been repeatedly ironed out on various forums, both Russian and English. If you look at the reviews of our foreign colleagues, it is quite a good review, but in the Russian segment the strategy has not won the trust. Having investigated our forums, I concluded that our traders' society takes an extremely negative attitude to free systems, arguing that "Free cheese is only in a mousetrap". But no matter how skeptical we are, the system has a right to exist, so let's start a detailed analysis.

Input parameters

• Currency pairs: any
• Timeframe: H1-H4
• Bidding time: 24/7
• Type of strategy: indicator, trending

Installing the Dynamic Gains System strategy

The trading system is installed in the standard way. If you have done everything correctly, then after starting the template your terminal desktop should look like this:

Used indicators

• Kijun-sen — индикатор отображается серой линией движущейся под и над ценой. Пересечение лини Kijun-sen является одним из сигналов системы. Для тех, кто не в курсе, Kijun-sen является одной из линий standard Ishimoku indicator. The parameter in this strategy is 26, like the standard Ishimoku.
• Dynamic Gains - The indicator draws arrows to enter a position up or down. It is based on the usual moving average with a period of 3 (most likely, the crossover of the price and the moving average). Taking into account the noise and the period of moving average 3, the arrow is redrawn as it pleases, from the slightest fluctuations, so that the signal of the indicator is perceived only by the closed bar.
• ArZZx -indicator is displayed in the form of gray triangles, and shows the direction to enter the position.
• Heiken Ashi Ma - This indicator draws red or blue candles, is a modification of the standard Heiken Ashi indicator with the addition of a moving average with a period of 1.
• Daily open line - The indicator is displayed with a faintly visible dashed gray line and shows on the price chart the time and opening price of the day of the currency pair.
• Current trand index - is displayed as a histogram in the three lower additional windows of blue and red. This indicator is the usual Heiken Ashi, only put in an additional window to display the situation on a smaller timeframe.
• Pivot td.  — индикатор рисует пивот уровни. Нужен для постановки stop loss и Take Profit.

Signals to open a buy position

We open a buy position if the following conditions are met at the same time:

• Price crosses the Kijun-sen indicator line from bottom to top.
• The Dynamic Gains indicator arrow points upwards.
• The triangles of the ArZZx indicator point upwards (personally, I think this signal is not necessary, because it slows down the inputs).
• Heiken Ashi Ma draws candles in blue.
• Current trand index 30 - histogram in blue color.
• Current trand index 60 is a blue histogram.
• The current trand index 240 is a blue histogram.

Signals to open a sell position

We open a sell position if the following conditions are simultaneously met:

• Price crosses the Kijun-sen indicator line from top to bottom.
• The Dynamic Gains indicator arrow points downward.
• The triangles of the ArZZx indicator point downwards (personally, I think this signal is not necessary, because it slows down inputs).
• Heiken Ashi Ma draws candles in red.
• Current trand index 30 - histogram in red.
• Current trand index 60 is a red histogram.
• Current trand index 240 - histogram in red.

Stop Loss and Take Profit

В стратегии Dynamic Gains System предусмотрена постановка стоп-лосс и тейк-профит по индикатору Pivot td. Но я вам также рекомендовал бы ставить стоп-лоссы на локальных минимумах и максимумах, тейк-профиты — на ближайших уровнях поддержки и сопротивления.

Recommendations for money management

Compliance money management — это основное условие, без которого ни одна, даже самая успешная стратегия не будет давать вам стабильный прирост капитала. Я придерживаюсь простой формулы: на одну позицию риск не должен превышать более 2% от капитала.

Criticism, personal observations

Dynamic Gains System strategy has proven itself more than one year of work in the market, its indicators have become the basis for other systems and, in general, it has become a powerful framework for experimentation. The trading system amazes by its lightness and, at the same time, by its meaningful selection of indicators. However, I found one major disadvantage when working with the system. Almost all indicators are re-drawing, as they say, it is a good wrapper for selling but not for working. You can enter into position only on a closed bar! The arrow can appear and disappear five times within an hour, so you should only wait for a clearly formed signal. Also, do not forget to back up your entries fundamental analysisThen you won't be afraid of any overdrawing. Thank you for staying with us, and good luck with the trend, gentlemen.

Download Dynamic Gains System Strategy Template and Indicators

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