Forex Strategy «Break-fractal» — a simple breakout trading system forex trading for the currency pair EURUSD (H1), based on 2 indicators: Moving Average, and fractals, as well as the rules of entry and exit, strategy trader sent Alex Alexeev and as it was refined and optimized parameters for the programmer, which it also wrote and adviser (see the end of the test strategy for forex).
First of all, set in the currency pair chart EURUSD (H1) the following forex indicators:
- Moving Average Moving Average: MA method — Smoothed, apply to the Close, between 135
- Fractal Bill Williams
Terms and Conditions of forex strategy «fractal break» are fairly straightforward.
For transactions to buy:
1) Price is above the moving average — we sell only the purchase of other options transactions do not see!
2) the formation of a fractal set up above the moving average with a period of 135, set aside Buy Stop order to buy at the level of the fractal
3) Set profit at a distance of 115 points (for a 4-digit Forex Broker, such Instaforex, for 5-digit brokers such as Alpari, it is necessary to add all the parameters Strategy 0 at the end, then there will be 1150 points)
4) The stop-loss set at 65 points / 650
5) if the order is not opened (activated) and formed a new fractal on the chart, then remove and set aside the order the new, the latest fractal with the same parameters.
6) a warrant to purchase when the profits of 30 / 300 points set on a trailing stop
For transactions on sale:
1) Price is below the moving average — we sell only the sale transactions and other options are not looking!
2) the formation of fractal down below the moving average, set aside Sell Stop order for sale to the level of the fractal
3) Set profit at a distance of 120 points / 1200 points
4) The stop-loss set at a distance of 35 points from the pending order / 350
5) if the order is not opened and formed a new fractal on the chart, then remove and set aside the order the new, the latest fractal with the same parameters for the transactions for the sale.
6) order to sell when a profit of 80 / 800 points to set a trailing stop
Additional terms of forex strategy:
1) Opening of orders occurs only from 6.00 to 12.00 on the terminal time Alpari (regardless of winter or summer time), at other times do not sell and if the orders are not activated until this time, remove them!
2) You can open multiple orders in one direction, if there is not yet closed, but the recommended minimum trading lot.
If you follow all the rules of forex strategy, then in 2010, when the test FRAC adviser to the range of H1, Lot 0.1 (fixed), we obtain the following report:
- Download a detailed report on trade adviser FRAC in 2010