Trend Strategy Pro 624: Trading on Four Hour Candlesticks

strategy Pro 624 is trending and uses in its work a graphical display of price "Japanese candles". При анализе используется 4-х часовой график, и у трейдера есть 6 потенциальных возможностей для открытия сделки по одной валютной паре (поскольку в сутках шесть 4-х часовых свечей; отсюда и название стратегии — Pro 624).

Pro 624 Strategy Settings

• Currency pairs: It is recommended to trade GBP/JPY because of its "trendiness" and a good volatility of this currency pair. EUR/JPY is also trading well, going after GBP/JPY most of the time (when affected by Eurozone economic news).
• Timeframe: the senior screen is H4, the work screen is M5.
• Bidding time: immediately after the close of any 4-hour candle.
• Risk Management: After calculating the stop-loss, choose such a volume of the lot that the risk was no more than 2-5% of the deposit per trade.
• The strategy uses two platforms: MetaTrader 4 and VT Trader.

VT Trader terminal setup

The senior screen (on H4) will be analyzed on the VTTrader platform. To install the VTTrader terminal, you need to register a demo account on the website www.cmsfx.com in the "Online Trading (Practice)" section (the link to this section is at the very bottom of the page).

The next step is to fill out the form:

After successfully filling out the form, you will receive an e-mail message about account activation and a link to download the terminal.

After the terminal is installed, all windows should be closed. The workspace of the platform should look as follows:

Next, we do the following:

• Go to the "Schedule" tab.
• In the upper left corner select "Open Chart" and open the chart of the desired currency pair.
• Change the timeframe to H4.
• Adjust the scale so that one or two days fit on the chart.

The schedule should look like this:

The chart above shows that 6 candles are formed during each day. The first candle is formed at 0:00 (12 A.M.), the second - at 4:00 (A.M.), the third - at 8:00 (A.M.), the fourth - at 12:00 (P.M.), the fifth - at 4:00 (P.M.) and the sixth - at 8:00 (P.M.). In the VT Trader terminal, the entire cycle begins on Sunday at 4:00 p.m. (EST) and ends on Friday at 4:00 p.m. (EST). Due to time zones, the timing of the 4-hour rollover differs from broker to broker. The VT Trader terminal is preferred, because there the rollover occurs earlier than the others.

Now it is necessary to find out the opening and closing times of candlesticks according to your local time and terminal time of your broker. Pay attention to the time when a new candle starts to form. In this case in MT4 terminal should have an hourly chart open so that you can figure out the time at which the 4-hour rollover occurs on the VT Trader platform. At the same time, notice the local time of your region.

For example, a 4-hour rollover in VT Trader by local time occurs at 1 A.M, 5 A.M, 9 A.M, 1 P.M, 5 P.M, 9 P.M respectively (time differs by 1 hour). That is, by the time of 1 A.M. it is necessary to be at the terminal waiting for the completion of the candle at 12.00 A.M. (VT time) and the beginning of formation of a new 4-hour candle (which corresponds to the local time of 1.01 A.M.). This scenario continues six times a day (to give you an idea of when you need to be at the terminal).

You can choose the moment of any 4-hour rollover for trading. Usually trading starts after the formation of the first 4-hour candle (by this time the primary trend is already clear). It is recommended to be at the terminal 30 minutes before the beginning of the formation of the next candle to be able to analyze the market activity.

MT4 terminal setup

• Unpack the archive with templates and indicators.
• Copy the indicators to the folder MQL4 -> indicators.
• Copy the templates into the templates folder.
• Restart the terminal.
• Open the chart of the desired currency pair.
• Install a template named Pro 624.

The schedule should look like this:

Algorithm of the Pro 624 strategy

The first thing we do is to analyze the senior screen (4-hour chart in VT Trader terminal) in order to predict the market condition in the next 4 hours. After that, we will look for an entry signal on the lower screen (5-minute chart in MT4).

Determining the direction of the trade:

• If the completed 4-hour candle in VT Trader is bullish, we look for opportunities to open long trades in the next 4 hours.
• If the completed 4-hour candle in VT Trader is bearish, we look for short opportunities in the next 4 hours.

From the 4-hour chart in VT Trader, we can see that most candles have shadows. It is these shadows, also called pullbacks, that give us the opportunity to enter the trade at the "right" time.

Signals indicating the opening of a long position (buy) on the Pro 624 strategy

• A 4-hour bullish candle (blue color) was formed in VT Trader.
• During the formation of the next 4-hour candle there was a pullback relative to the already formed bullish candle.
• Switch to the 5-minute chart in MT4 and wait for the turquoise up arrow to appear (T&C indicator).
• Open long trade.
• Accompanying the transaction.

Signals indicating the opening of a short position (selling) on the strategy Pro 624

• A 4-hour bearish candle (red color) has formed in VT Trader.
• During the formation of the next 4-hour candle there was a pullback relative to the already formed bearish candle.
• Switch to the 5 minute chart in MT4 and wait for the red down arrow to appear.
• Open short sale.
• Accompanying the transaction.

Additional filters

To reduce the number of losing trades, the Pro 624 strategy includes additional indicators: Procelator_624, Procelator_624b and FxboomPivots. Use the Pro 624 filters template to display these indicators.

The schedule should look like this:

If the price hits the support level and the blue line on the oscillator crosses the red line from the bottom to the top, the price will go up with a high degree of probability.

If the price hits resistance leveland the blue line on the oscillator crossed the red line from top to bottom, then the price will go down with a high degree of probability.

Methodology of setting stop loss and take profit

Stop Loss is placed under/over the candlestick, where the signal to open a deal appeared (turquoise or red arrow).

Withdrawal from the transaction may be accomplished in the following manner:

• Appearance of an arrow in the opposite direction to the direction of the deal (red arrow in case of buying or turquoise in case of selling).
• Take Profit at a significant support/resistance level.

The ratio of stop loss and take profit should be acceptable (at least 1).

ForTrader.org experts believe that despite some complexity associated with the use of multiple terminals, the Pro 624 strategy can, with some optimization, be profitable. When using the Pro 624 strategy on a live account, it is highly recommended to test it on a demo account.

Download Pro 624 Strategy Templates and Indicators

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