Forex Strategy from Qwerty — in the Trading System value of stop-loss of 30 points and only one indicator: Stochastic (5,3,3), although his testimony should be considered at the 5 time-frames: M5, M15, M30, H1 and H4, this strategy has proved forex when trading currency pairs: GBPUSD, EURUSD, GBPJPY, EURJPY. Other currency pairs can also be used, but the price is behaving less predictably, and for this strategy is not very suitable.
Here is the text forex strategy, which has sent me a user Qwerty (for which he express my gratitude!):
This strategy works well in forex Flеtе and the trend since Stochastics on Flеtе just works perfectly, in a trend Stochastic Oscillator is as good shows itself, but against the trend to use it is simply dangerous.
And so set on the schedule chosen currency pair indicator Stochastic Oscillator (5,3,3), which is present in any trade terminal Metatrader 4 and install it oversold levels / overbought — 20 and 80 and optionally adds a level of 50 (for clarity, the direction of trade ).
Or, for the convenience of monitoring the stochastics indicator can be used + Stochastics (MTF_for M5).ex4 to promptness with conventional stochastically (in common use, you will see all the time-frames stochastics on the same graph). For ease of installation of this indicator Metatrader 4, recommends that you use a template for MT4 (You can download it at the end of the strategy forex).
Transactions on the Forex Strategies from Qwerty (by the example of a transaction to Buy the currency pair GBPUSD):
1) Check for evidence stochastics timeframes M5, M15, M30, H1 and H4. If stochastics at all time-frames provided in the overbought or oversold, so soon will spread prices on time frames below H4. But it’s quicker just to continue in the direction of the interval H4 or D1.
Hence it is necessary to move to the interval H4 and build a Fibonacci levels on the direction of the trend of the last clearly expressed by the movement (in which there is pronounced minimum and maximum).
Figure 1: The signal from the interval Stochastic H4:
2) Look at the Fibo levels in the interval H4 (we are interested in is all important levels: 23,6%, 38,2%, 50%, 61,8%, 76,4% Fibonacci) and put the Limit-Order to the nearest of them, about which the money was obtained after the signal from the stochastics at all time-frames.
Figure 2: Confirmation of the signal from Stochastic on the interval H1:
While it can be effectively and continuously monitor the signal: first, when the forward will be in the area of stochastics overbought or oversold on H4, then only look at the repetition of the same signal at smaller intervals and the proximity of the price of an important Fibonacci level.
Figure 3: Confirmation signal from the interval Stochastic M30:
For convenience, go to a smaller intervals: M5 or M15 and watch how the price behaves.
Chart 4: Confirmation of the signal from the interval Stochastic M15:
Usually before the end of the confirmation signal at the interval M5 you have another 10-15 minutes to make a decision — to set a pending order or not!
Figure 5: Acknowledgement signal from the interval Stochastic M5:
If the price at a given time is somewhere between Fibo levels, then look at the levels from which the price has bounced in recent times and put on them.
If you missed the entrance to the market, you can re-enter into it, I use Fibonacci — levels on a smaller time-frame — M15 (Fibonacci levels as building on the last movement, the price of which has already jumped, but fell back a bit and tries to correct).
3) If the price is unfolded without touching my deferred Limit-order, then move it to the level where it unfolded.
The fact that the price is usually several times it tries to break through (test). The result obtained fairly accurately enter the market.
4) Stop-loss is placed at a distance of 30 points — this is quite enough! And do not pass it if already installed, because I do that a couple of times (see report) — the result was better not to, but worse — the deal was a loss-making!
5) Warrants try to close on the take-profit. But where to install it yet just do not know, I work on it (if you have any thoughts on this matter — please share). Sometimes the price goes over 100 points, and sometimes 1000. So while putting 200 points and if I see that the price is set, then tighten it closer. Possible and with a trailing stop, built-in MT4.
5) Risk management: the lot for $ 1000 using a constant 0,05. What and all advise! — This will allow you to keep your deposit and multiply it consistently, without fear that something will happen in the forex market and you lose your depot.
For transactions on the Sale of the trend should be sent down to the H4 or D1 and wait for stochastics will be at 5 time-frames in the zone Overbought!
1. for older timeframes — stochastics should not give the opposite signal, it is best when it is already moving in the direction of trade! Ie no need to bargain, if some of the intervals in stochastics formed opposite signal during the formation of signals at the 5 time-frames!
2. Stochastics on the daily chart usually indicates the trend (which he directed — there and to trade)
- Download forex indicator for MT4: + Stochastics (MTF_for M5).ex4
- Download a template for Metatrader 4 — qwerty.tpl
Note: All indicators and forex MT4 template must first unzip!
Just for this strategy, you can view a report on trafficking for the period 01.06.2010 — 22.06.2010 with a real user account Qwerty (opens in a neighboring window)
Just want to draw attention — a sharp jump in the graph — the withdrawal of funds from the account — the profit ($ 500 wmz)!