Forex Strategy «Boomerang»

Forex Strategy Boomerang

• Currency Pair: Any, but preferably either GBPJPY GBPUSD
• Time period: H4-H1
• Used forex indicators: EMA (18) — Exponential Moving Average — Exponential Moving Average of period 18.

Volume of transaction: — see «Management of capital when trading strategies Forex Boomerang

Algorithm strategy Forex «Boomerang»:

This forex strategy is based on a combination of traditional Forex strategy on the breakdown of the elements of Martingale. The purpose of the strategy «Boomerang» is to identify small targets profit and receiving this income. Making a profit in the forex strategy is very closely connected with the management of capital (because trading is the method of Martingale), which will be further discussed below. This trading system is unique in that, by trading on it, we can take small profits in sideways markets, as well as big profits in trending markets. This system was developed over polutara years, long modified, as well as modify its components.

Setting to work on the strategy of «Boomerang» is very simple trading system itself may well be used by all types of traders FOREX. Ie: those who like to sit all day behind the monitor, be able to trade on it throughout the day. But those who do not like to be a long time before the screen monitors would be able at any moment to close the bargain, and when they return to the computer in his spare time, will have the opportunity to open a new trading position.

I think you will find this a useful way to trade.

Main characteristics of trading forex strategy «Boomerang»:

— H4 — 4-hour schedule (GBPUSD or GBPJPY)

— H1 — Hourly chart (GBPUSD or GBPJPY)

— EMA (blue on closing prices, deposited on a 4-hour chart)

— Microsoft Office Excel — a table attached to the end of this strategy.

Conclusion of the transaction on forex strategy «Boomerang»:

All entries into the market based on a 4-hour price chart. All pricing schedule is designed to more closely examine trade deals already, after they were concluded. We also can fully replace the hour schedule, the schedule of any lower than the 4-hour time slot.

Rules for the opening of trading positions on «Shopping»:

— The price must be higher than the EMA on a 4-hour price chart.

— The price must be higher than the median prices of the previous 4-hour bar in the chart.

Or

To re-enter the market — by opening a long trading position is the fact that the previous trade deal, which was closed by stop was just a short trade.

Determining the size of a trading position, take-profit, safety stop-loss on forex strategy «Boomerang.»

To do this we need to book Excel (at the end of the strategy). Assume that we have matched all of the major criteria for opening a trading position on a purchase. The current price for a 4-hour bar 1.9936.

A few comments: it is desirable that the price was the price discovery, immediately after having been closed the old 4-hour bar. This price must be higher than the median prices of the previous 4-hour bar. Once you find these basic criteria, you enter a price in the table excel, where is written — «price of entry» — «Entry Price», then choose the bargain that we want to open — «long» — long. Then in the windows of the book values will be for your profit and stop-loss. So, you open the first bargain price 1.9936 on a purchase. The first profit target at 1.9946, and a safety stop-loss order at 1.9931. If this close deal on foot, then your new deal will be «short» — up for sale, its price is 1.9931, take profit 1.9916, and a safety stop-loss 1.9936 and so on. The aim of the strategy is that by opening one of the trading positions in a series of transactions, to catch a break and enter into a profitable bargain. Pay attention to the fact that the take-profit is growing with each new deal.

You can assume that 10 pips is very little profit to strive to earn … There is a method that allows you to increase profits, if you catch a strong trend towards open your trading positions. Once your income for an open position has reached its goal of 10 pips, you can place a trailing stop at 5 pips, the size of the transaction is determined at the same time your acceptable risk.

For example, if you placed a bargain at 10 lots, after the price of the plot has reached its goal of profit +10, you close the 5 lots (or 50% of the open transaction), the following open lots are distributed as follows: 2 lots — on a trailing stop 10 points, 2 lots — at the Trailing Stop — 15 pips, 1 lot on a trailing stop — 20-25 pips.

This will give you the opportunity very well protect yourself from losing trades, and along with it, to catch a strong move, though a smaller number of CMV transactions. But do not worry if you failed to catch a strong trend. Your next entry in the market will already be in the next 4-hour candle. The worst scenario would be closing 50% of the open transaction with a profit of 5 points ….

Thus, the sum (left% trade position — the right size of a trailing stop)

50% — take profit 10 pips

20% — 10 points

20% — 15 points

10% — 20-25 points

You can either close a trading position at the end of the trading day, or wait for the next trading signal for the 4-hour candle.

Rules for the opening of trading items for sale:

Price should be under the EMA on a 4-hour price chart.

Price must be below the median prices of the previous 4-hour bar in the chart.

Or

For re-entry into the market:

If the previous transaction for the purchase was closed by a foot.

Determining the size of a trading position, profit, stop loss be carried out as described above, to open «position to buy.»

An example of the transaction.

We open trading position on the bar, after the price is higher than the exponential moving average EMA, as well as more than the median price of a 4-hour bar.

Let us imagine that the bar had not yet fully formed, but only opened. Circled bar — this is nothing but a bar opening trade deal, while the bar, labeled by the Fibonacci — this is the bar, for which we determine the median value. After the bar was opened at a price of 1.9672, when we open a long trading position, we are introducing these data into a table excel.

Thus, our profit target is at 1.9682. Place trade orders and look what happened. For observation, we will use a chart of smaller trading period.

 

We have opened a bargain price 1.9672. The price has gone up, so a safety stop-loss order has not been activated. After achieving a profit, we are closing 50% of our open trading positions. Price continued to grow. Next 20% of deals were closed with a trailing stop at 1.9682, the remaining 20% with a trailing stop at 1.9694, and the last 10% trailing stop at 1.9690. Ie if you trade standard lots 10.0, your profit on this trade deal would amount to 1.320 dollars, or about 660 dollars for 1 hour of trading.

Of course, things are moving so well not always …

Now we consider the example of the transaction, which was closed to foot and rolled in the opposite direction from the first.

So, on a 4-hour price chart, we found a candle, which opened over the EMA and also closed above the previous candle. The median price — 1.9782. Makes these data into a table in the program excel.

 

Watch what happens after that:

The price reached the level of stop-loss, and follow the rules of this strategy, «Boomerang», was opened trade in the opposite direction from the first transaction. The new take-profit compensates us old loss of 5 points, plus our goal of a deal must byt10 points. Thus, the 1 st take-profit is 15 points. Fortunately, for the second time a safety stop-loss has not worked. 50% were closed at a price of 1.9762 (ie, compensation actuated foot + 10 points), second 50% were closed with a net profit of 5 points in connection with the formation of «spikes» on the chart. Suppose, if you traded 10 lots on the transaction you would earn $ 750 or $ 375 in 1 hour shopping.

The same concept of trade on the strategy used for those cases where our open positions are closed at the foot not once, but several. You deploy a trading position in the opposite direction, defining, with new levels of safety stop-loss and profit. During the work on the forex strategy has not been the case that 10 attempts to turn were unsuccessful. Although such a situation, the forex market and can happen, but the likelihood of this is small enough …

A few useful tips on trading forex strategy «Boomerang»:

1. You can use the Fibonacci extension tool for measuring the median previous bar — place your levels are high and low bar and define the level or rolling back to 50%.

2. If your forex broker offer you a service Stop and Reverse orders, it certainly can be very helpful in your work on this strategy (unfortunately, the trading platform Metatrader 4, this feature is not available, but it is quite possible to use a simple forex advisor, who is a standard set of MT4).

3. After doubling the deposit to recommend him to withdraw earned PART.

Wealth management when trading strategies Forex «Boomerang.»

Now I will not give a full course of money management when trading this strategy because this would attach the whole book. But here is an ordinary example of how with the help of a competent and proper money management on the trade account, you can earn quite quickly using this trading system — «Boomerang».

Rule of money management is this: you increase the volume of trade position only if it increased the volume of your initial investment in 2 times. For example, if you started trading with 6.000 dollars and trade, for example, 1 lot, you increase the volume of trade position for 1 lot for each earned you follow 6.000 dollars, ie no sooner than when the amount of deposit 12.000, 18.000, 24.000 USD and so on. Assume that your profit is only 5 points in the trading day. And in a year of trading days — 220.

If you strictly follow the rules of strategy, then something like this will increase your trading forex deposit:

After three years of hard work from the $ 6.000, and if you increase the number of lots, that’s right, as stated above, you can get one million dollars ($ 1,000,000).

Just can recommend to you if you do not want to do all the work themselves, the adviser, who works on forex strategy «Boomerang» — Advisor Forex VF_Boomerang. (Personally, I do not care if it sold, but I’ve heard positive reviews, too).

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But as is always recommended to remember about the risk, because You are trading Forex, and even more so by the method of Martingale — ie should not be abused this way of trade, all is good in moderation!