Forex Strategy «Increasing volatility»

Published: 29.10.2009 | Author: admin | Posted in: SIMPLE forex strategy

Instaforex

Forex Strategy «Increasing volatility» — another simple breakdown forex strategy on pending orders Buy Stop and Sell Stop, the installation level are determined by a very simple formula, depending on the volatility of yesterday’s trading day, the recommended currency pairs to trade: GBPUSD, EURJPY.

Favorite orders to buy are installed by the following formula:

Buy Stop = today’s opening of the market price + 70% of yesterday’s daily candle + value spread for the chosen currency pair.
Stop Loss = 50% of the value of yesterday’s daily candle.

Favorite sell order sets the following formula:

Forex Strategy "Increasing volatility"

Sell Stop = price of today’s opening of the market — 70% of yesterday’s day candles
Stop Loss = 50% of the value of yesterday’s daily candle.

To calculate the levels be placed pending orders and stop-loss, use indicator Daily Volatility Breakout.mq4 — download it along with a template for Metatrader 4 can be at the end of this strategy forex.

Example look at the picture:

As soon as the profit on the transaction amount to 50 — 70 points — recommend rearrange stop-loss level in «zero». And further, if desired, you can use a trailing stop at the same distance — 50 points.

TP is not installed, and closing of the transaction occurs at the close of the day or at the trailing stop.

Extras:

1) All pending orders did not work during the day to REMOVE the closing day candles!

2) If one of the orders worked, then the second also clean!

The report «a little» bit old, but still adds another «+» for this strategy …

TEST - Forex Strategy "Increasing volatility"

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Comments (3) on "Forex Strategy «Increasing volatility»"

  1. Giri:
    10/30/2009 в 15:38

    Thanks a lot for posting this. Instead of closing the trade on the next day, Is it not better to move the stop loss to the 70% value of the previous day candle just to ride the trend. I think this strategy is similar to «Buy on break out of previous day high, Sell on break out of previous day low».

    Do you have an EA for this? I just want to backtest it further with other pairs.

    Thanks,

  2. admin:
    10/30/2009 в 16:56

    Giri,
    No, I do not have the Advisor on the Forex Strategy

  3. Wasskii:
    01/29/2010 в 22:49

    hello,

    Can modified the indicator insted of yestardays range, ATR X days .

    The bands i want to use as a statystic.

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