Good day, dear readers of ForTrader.org. Today I would like to share with you one of the systems which I have met about a year ago on one of the foreign exchange forums. Rereading the forum, I decided to add it to my portfolio. I was encouraged by the history in the strategy tester, considering the fact that I did not pay attention to economic news when I was reviewing the system. So I am pleased to present to you a trending strategy called Holy Signals.
- Currency pairs: any
- Timeframe: H1 to D1
- Trading hours: 24 hours a day
- Type of strategy: trending, indicator
Installing the Holy Signals Strategy
The Holy Signals strategy, like all the others, is installed in the standard way. If you've done everything correctly, your terminal desktop should look like this:
The Holy Signals strategy has four indicators that, in one way or another, are responsible for entering a position.
- Ema Crosover Signal - displayed in the form of green and pink arrows, respectively, up and down. This indicator is based on the intersection of two moving averages, fast and slow with periods of 4 and 8. These parameters can be changed up or down, thus adapting the system to your trading style. I also want to note that in recent years it has become very popular to buy indicators that show arrows. Do not fall for this scam - on average, in 90% cases, the basis of these pseudo-indicators is a simple moving average + some oscillator.
- Moving Average - in the system is represented by two lines of red and blue. This indicator is a standard trend indicator MetaTrader 4 trading platform. In this case, the parameters of moving averages 5 and 13. This is a kind of visual control over the previous indicator. Parameters of moving averages can be changed by anyone, giving importance to noise (when scalping or trading on small timeframes), or cutting off noise by increasing parameters.
- Holygukgukguk – авторский индикатор, отображается в виде столбиков зеленого и розового цвета. Параметры и настройки мне неизвестны, но чисто механически можно изменить параметры в ту или иную сторону, подогнав индикатор под себя. Такое чувство, что он построен на скользящих средних, хотя я могу сильно ошибаться.
- RSI - standard oscillator of MT4 terminal. This system uses the intersection of two RSI (non-standard approach when working with this indicator, but often practiced). Parameters of the indicator are 115 and 21. Every trader can adjust these parameters to his own style and a certain timeframe.
Signals to open buy positions by Holy Signals strategy
A number of these conditions must be met in order to enter the buy:
- The Ema Crosover Signal indicator shows a green up arrow.
- The red line of the Moving Average indicator with period 5 crosses the blue line with period 13 upwards.
- In all additional windows of the Holygukgukguk indicator the bars should be green.
- The blue line of the RSI indicator with period 21 should cross the red line of the RSI indicator with period 115 from below upwards.
Signals to open sell positions by Holy Signals strategy
A number of these conditions must be met in order to enter the sale:
- The Ema Crosover Signal indicator shows a pink down arrow.
- The red line of the Moving Average indicator with period 5 crosses the blue line with period 13 downwards.
- In all additional windows of the Holygukgukguk indicator, the bars should be pink.
- The blue line of the RSI indicator with period 21 must cross the red line of the RSI indicator with period 115 downwards.
Setting stop-losses, exiting a position
In the Holy Signals strategy there is no clear stopping orders (there are no indicators that would be responsible for this), so I would recommend you to put your stop losses on local lows and highs, important levels. If you're not very good at finding local lows, highs or levels, I suggest you go to Indicators for MetaTrader 4 (MT4)" section and pick up the necessary assistant-indicator (pivot levels, Murray levels, support and resistance levels. You can exit the position by a given profit or by the opposite signal of the Holygukgukguk indicator, but only on a closed bar.
In each of my articles I repeatedly remind you that money management is the foundation without which it is impossible to build a good house. Compliance with money management is the pledge and 50% of your success. I recommend to risk no more than 3% on one position of the deposit in this trading system. If you, for whatever reason, are not familiar with money management, you do not know how to calculate the lot, then I suggest you take a look at section "for novice traders".
Conclusion of the author of the article
I have personally encountered the Holy Signals strategy more than once, and as practice shows, everyone speaks quite highly of it. I personally am a fan of trend systems, everything that is based on moving averages, gives me a lot of confidence, because I, like everyone, at one time started with moving averages and this is a classic, after all.
On the merits of the system:
- It's easy to use. Even a beginner who is new to the market can cope with it.
- Most of the indicators of the system are classical or based on them, which enables both beginners and pros to optimize the system for themselves.
- Not overloaded, your eyes are not scattered with the number of indicators.
Of the drawbacks:
- In the flat, the system just falls out (like all trend).
- Some indicators are overdrawing, so you should only enter on a closed bar.
- Late signals, as in all moving average strategies.
From my experience, the Holy Signals strategy has the right to exist. A little hands and brains with a little optimization for yourself, and the strategy will thank you with money. Thank you for staying with us, and good luck to you!