Forex Strategy 80-20


Forex Strategy 80-20 — another very simple and quite an interesting strategy forex Linda Raschke (previously we looked at 2 of its strategy: Turtle Soup, Turtle Soup plus One), in which trade is conducted only on the daily range (D1) and trading signals are only During the 1 st trading day.

Investigating the patterns of financial markets, it was noted that if the price on the market closes at the top or bottom 10% -20% of its daily range, then there is a possibility and it is 80% -90%, the next morning, the price will continue to move in the same direction (ie towards the closing day candles), but eventually the price closes above or below this candle in only 50% of cases! That’s a given fact (a chance to turn in the middle of the 2 nd day after the close of the 1 st day candles), and allowed 80-20 strategy exist and be popular in the financial markets.

So, let’s look at how deals are made in Forex Strategy 80-20, an example of the transaction on the purchase.

Suppose we open a trading terminal MetaTrader 4 today and note that:

1) Yesterday’s daily candle was discovered in the upper 20% of its daily range and closed in the bottom 20% of its daily range. Ie If the daily candle divided into 5 parts, the opening price of yesterday’s daily candle is in the top 1 / 5 of a closed candle. And the closing price is at the bottom 1 / 5 of the closed day candles.

Forex Strategy 80-20

Figure 1. Dedicated bearish candle was discovered in 1 / 5 of the upper range and closed at 1 / 5 of its lower range

2) Today’s daily candle opens and the price at the market went in the same direction as the close of the previous daily candle — ie for sale, presumably for at least 10-15 points.

3) At this moment, when the price is already below yesterday’s low and we have clearance to be placed pending order, we set the pending order to buy the type Buy Stop at yesterday’s low price!

Forex Strategy 80-20

Figure 2. This is the same candle as in Figure 1, only the hourly interval. Expose the pending order to buy at a time when the price of the 2 nd hour candle falls below yesterday’s low.

4) After the opening of trading positions in the purchase, we will establish a safety stop-loss orders below a few points (3-5) segodneshnego minimum.

5) Next, use a trailing stop (Universal trailing stop, the standard in Metatrader 4, or a trailing stop on the 1 st paragraph) to lock in profits and tightens our stop-loss at a safe distance that you define for themselves, depending on the the chosen currency pair and the volatility in the forex market.

For example, if the amount of daily candles 100-200 points, and trailing stop should be placed at a distance 50-70-100 points. Candle 50-70 points — tryling-stop: 25-30 points.

6) If you prefer, you can put  a profit target at a distance of at least 3.2 times the initial stop-loss (as required by our Money Management Forex). Or record profits on the important Fibonacci levels, built by the first candle (38,2%, 61,8%)

7) Or you can simply rearrange the position of  zero level, as soon as you see fit and leave the deal by the end of the trading day, and then look to close it or leave open. But I personally believe that it is better to use a trailing stop to lock in profits.

For transactions on sale — the rules of the opposite!

Simple Forex Strategy 80-20

Figure 3. Vystalyaem pending order to sell Sell Stop, when the price broke yesterday makismum. Stop-loss is 10-15 points higher than this maximum, because price is not too moved away from him and turned around.

Note: The transactions in this strategy are not as common, but if you observe the laws of several currency pairs, the probability of the conditions and the entry into the market will garazdo above!

By this strategy, forex trading you can buy

Expert Advisor to the 80-20 strategy

Note: if you want to receive updates Expert Advisor  - LEAVE positive feedback in the store without specifying e-mail in the body of reviews! e-mail please indicate on the payment page — which indicates where the goods will be delivered!

Subject to strict adherence to rules of the forex strategy 80-20, we get approximately the following trading results (test results Adviser 80-20 strategy):

1) Test strategies forex 80-20 — EURUSD (D1) with Expert Advisor  80-20 strategy

Test forex strategy 80-20 - EURUSD (D1) by Expert Advisor 80-20 strategy

2) Test strategies forex 80-20 — EURJPY (D1) with Expert Advisor  80-20 strategy

Test forex strategy 80-20 - EURJPY (D1) by Expert Advisor 80-20 strategy

3) test strategies forex 80-20 — USDCAD (D1) with Expert Advisor 80-20 strategy

Test forex strategy 80-20 - USDCAD (D1) by Expert Advisor 80-20 strategy

Download: Report of the 80-20 strategy adviser

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