Forex Strategy The Bat (Die Fledermaus)

Forex Strategy The Bat (Die Fledermaus) — represents a medium-term strategy Forex, which very easy to use, and the ratio of loss to a profit in it are very good; trading system uses basically Forex Indicator, which elaborated on the basis of the indicator ATR.

Setting strategy forex The Bat:

• During the testing of the strategy used in forex trading platform MT4 (recommend looking at the data centers Dealing with the trading terminal MetaTrader 4 — which worked well in the forex market).
• Time range — 1 hour, commercial steam — GBPUSD.
• Set the indicator forex ATR__the_bat (period: 5, factor 4.0) — can download it at the end of this forex strategy.
• Set the selected price plot Fibonacci lines. In the properties of Fibonacci in the tab «Fibonacci» add or change the following levels:
  • Level 0 — description of the «reversal»
  • 0.382 — description «38.2 — 2 lots»
  • 0.618 — description «61.8 — 1 Lot»
  • 1 — description «Entry — 1 Lot»
  • 1.618 — description «161.8 — 1 Lot»

Your resulting graph should look something like this:

Chart 1

Blue and red lines on the graph Called  lines «BAT».

Description forex strategy The Bat:

The entrance to the market:

We are opening a trade deal as soon as the price breaks the line «BAT». If you are currently BAT blue line, therefore the price is above it. When the price will approach and pass through the blue line BAP, we conclude a bargain on sale. You can also place a pending order on line BAT, so you could not miss the point to enter the market.After the blue line will be broken, you’ll see that start drawing a red line. This will occur after the close of the next bar on the chart. With a deal for the purchase, the rules are the same but opposite.

Example of an ordinary transaction.

Consider it on the chart 2. The price is below the red line «ABC» to 22.12 and to 27.12, after the price broke the red line ABC in the next point — 1.9589.

Once the price breaks the red line, open the bargain on purchase — size 1 Lot (size of transactions is given conditionally, you can pick up those that match the size of your deposit as a percentage). After that set the chart Fibonacci retracements. Simply select the Fibonacci tool and stretch it from the entry point to the last or critical minimum.

On the example you will see how to draw a line from a minimum of Fibonacci Candlestick 26/12 at 19:00 at 1.9511.

Chart 2

A little work out to establish the Fibonacci levels.

Once the transaction is open (let’s call it, for example, «transaction number 1), we should place the pending orders in the order (they must all be for the purchase):

— A pending order to buy — deal number 2, set the level of Fibonacci «61.8 — 1 lot;

— 2 pending orders — a deal number 3 «and» transaction number 4 on the 1 st lot on the level of Fibonacci 38.2;

First stop-loss trade position will be located at 10 pips below the last minimum (ie the minimum, which was held Fibonacci level).

The objective of this strategy Forex — to open more trade deals if the price rolls back to these Fibonacci levels.

The easiest option trade deal — the price does not roll back, and moving forward.

Consider Figure 3, it clearly shows that the price is moving forward without setbacks. Once the price breaks Fibonacci level 161.8, you must delete all pending orders. If the price did not pierce Fibonacci level 161.8, and bounce off him, you probably start opposite trend, and we do not need to open additional bargains.

Once the chart appeared blue line and it was up to the point where we have placed a stop-loss, we need to move our stop-loss level at the blue line and leave it there.

The easiest way out of a trade transaction takes place after the price breaks above the blue line and gives us the signal to open the transaction for sale.

Chart 3

More complex version of the transaction.

This option is a bargain usually occurs most commonly in the market. Once the price breaks above the red line, we open our bargain number 1 at the price of 1.9337 on 8 January (see Chart 4). Once the bargain was open, we need to place the pending orders — a bargain at the price of number 2 1.9307, trading transaction number 3 and number 4 on the price of 1.9289. Originally Stop-loss set at 1.9249 price level. When placing pending orders set Teyk profit at the level of entry into the market by the first commercial transaction in this case the price is 1.9337.

Bargain number 1 keep open until such time as the price will not be able to break the blue line. Safety stop-loss on the trade deal tightens the number 1 in terms of the blue line.

The result of deals:

The transaction number 1: input 9337 output 9373, Total: 36 points

The transaction number 2: input 9307 output 9337, Total: 30 points

The transaction number 3: input 9289 output 9337, Total: 48 points

The transaction number 4: input 9289 output 9337, Total: 48 points

Total was earned — 162 points.

Chart 4

Trading in foreign exchange markets in fletovom state:

This version of Forex strategy works well once the price ranges in some narrow range. In the following example, bargains number 1 and number 2 were opened and closed by the above mentioned rules. On the chart number 5, they were marked with pink arrows. The blue arrows indicate the re-entry into the market after the price of re-rolls. However, the re-entry into the market can be made only if the market price remains within the established level of Fibonacci 161.8. Once the price reaches a level of 161.8, this version of the trade should not be used. Likely that the flat ended and began anew trend movement. Or, if the price is again returned to the Fibonacci levels of 61.8 and 38.2, davolno have a high probability of a trend reversal, followed by a broken line of BAT, which could result in losses.

Chart 5

Of course, in this forex strategy case of a stop-loss. Usually they are due to shadow trade candles that pierce level. And the most unpleasant that no one knows whether this will be a mere shadow of a candle at the closing hours of a powerful breakthrough.

Chart 6