Forex strategy «Eight» by and large is a kind of breakout trading system. However, in this system, after determining the breakout range, certain conditions must be met within the range, and only then is the entry into the market considered.
Already at the moment of closing the last candle of the range, the strategy clearly gives an understanding in which direction the signal is possible today. Trading in both directions is not possible.
The authors of the strategy point out that this trading system is traded only for 9 months, and there is no trading on it in the summer. However, after checking, trading in the summer months did not show any strong negative impact on the result.
It is only worth noting that only one summer month turned out to be strongly negative, but the remaining two months covered this loss and even went into a pretty good plus.
From December 2018 to December 2019, the Eight strategy showed a positive result in the region of + 200%. The risk per trade is 3% of the initial deposit. The maximum drawdown was 27% (losing summer month).
- Currency pair — GBP/USD.
- Time interval — M15.
- Morning Flat_V3 with default settings.
- Ganns Signal StopLoss_V4 with parameters 0; 5; 1.
Conditions for purchases according to the Forex Strategy «Eight»:
1) At the time of closing the time box (8:45), the Ganns Signal StopLoss_V4 indicator is red.
2) As soon as at the close of the next 15-minute candle the Ganns Signal StopLoss_V4 indicator changes its color from red to green and the indicator is above the lower fibonacci extension level from the 161.8 box (drawn by the Morning Flat_V3 indicator), a buy deal is concluded.
3) If the price before receiving the entry signal is above the upper limit of the time box, then the signal on this day is no longer considered.
4) Stop loss is set 2-3 pips below the low of the day.
5) The risk per trade is set at 3% of the deposit.
6) Upon reaching the upper level of fibonacci extension 161.8 (drawn by the Morning Flat_V3 indicator) from the time box, the trade is transferred to breakeven.
7) Take profit is set at 8 times the size of the stop loss order.
8) If the trade is still active at the close of the day, it should be closed at the current market price.
1) At the time of closing the time box (8:45), the Ganns Signal StopLoss_V4 indicator is green.
2) As soon as at the close of the next 15-minute candle the Ganns Signal StopLoss_V4 indicator changes its color from green to red and at the same time this indicator is below the upper level of fibonacci extension from the box 161.8 (drawn by the Morning Flat_V3 indicator), a sell trade is opened .
3) If the price before receiving a signal to enter the trade is below the lower limit of the time box, then the signal on this day is no longer considered.
4) Safety order — Stop loss is set 2-3 points below the low of the current day.
5) The risk per 1 trade is set at 3% of the deposit amount at the time of trading.
6) When the price reaches the upper fibonacci extension level of 161.8 from the time box (drawn by the Morning Flat_V3 indicator), the trade is moved to the breakeven point.
7) The transaction is fixed by Take Profit, which is set 8 times larger than the size of the stop loss order for this transaction.
8 ) If at the close of the current day the deal is still active, then it should be closed at the current market price.
Video version of the «Eight» strategy:
- Recommended to watch with English subtitles!