Forex strategy «500 +» is a strategy of the trend with a classic set of indicators and is designed for taking profit to 500 points (on a 4-digit quotations), hence the name, and it is intended to trade on the EURUSD currency pair on the H4 interval.
It is known that the big trends rarely catch and even more to keep them quite a long time and pick up most of them. After the first acquaintance with the market is such movement is the aim of the new arrival, but this dream is gradually melts. It becomes clear that the trend to catch once the case is practically impossible. Before you end up in a good trend it can be concluded enormous amount of negative transactions, which will bring to zero all the profits, or even leave a deposit in the red.
Often, even in such cases, traders do not believe they are finally in a big trend and come out a lot sooner than it will end …
А small amount of the strategy is now considered attempts to catch a good move and wait for it to its logical conclusion (500 points). Call her over profitable, of course, it’s hard, all the same trades will be negative and not rarely, but the feeling that experienced trader taking 3-4 deal with the profit will add positive emotions to profits.
Some statistics:
Over the past year, from December 2014 until 26 November 2015, the strategy has brought about +1400 points. Closed on total profit (500 points) — 4 deal.
- Timeframe — H4.
- Recommended currency pair — EUR / USD. Although according to the authors, this strategy is a multi-currency (suitable for any pair), but this point has not been tested.
Indicators used in the forex strategy:
1) RSI indicator with period 14.
2) Parabolic SAR indicator in increments of 0.03 and a maximum of just 0.03
3) A simple moving average with a period of 70 (MA70).
Terms of BUY for forex strategy «500 +»:
1) The next candle closes above the moving average with a period of 70. All further action is taken only if the price remains above the MA.
2) Parabolic SAR indicator jumps a price.
3) RSI indicator above its level 60.
4) At the opening of the next candle opens the transaction for the purchase.
5) Stop-loss is set at a distance of 80 points from the entry point.
6) When the Parabolic SAR is closer to the opening price should rearrange stop-loss order at its last value. In the future, the transaction will be accompanied by its values (3-4 points lower) until the closing of the transaction.
7) If the price has passed 130 points in the positive zone, the transaction has to be at least in bezubytka. If the Parabolic SAR indicator is not yet allowed to do this, then it is done without regard to this indicator.
8 ) Take-profit set at a distance of 500 pips from the entry point into the market.
Conditions for SELL in «500 +» strategy:
1) Regular H4 candle closes below the moving average with a period of 70. All further action is taken only if the price remains below the MA.
2) Parabolic SAR indicator jumps and turns over the current price in the chart.
3) RSI indicator is below its level 40.
4) At the opening of the next candle opens H4 transaction for sale.
5) Safety stop-loss is set at a distance of 80 points from the entry point into the market.
6) When the Parabolic SAR is closer to the opening price should rearrange stop-loss order for its last value. In the future, the transaction will be accompanied by its values (3-4 points higher) up to the closing of the transaction.
7) If the price has already passed 130 points in the positive zone, the transaction must already have at least moved to breakeven. If the Parabolic SAR indicator is not yet allowed to do this, then it is done without regard to this indicator.
8) The order of profit taking — Take-profit set at a distance of 500 pips from the entry point into the market.
Addition to the strategy:
The transaction in the same direction can be considered only if the price of at least touches MA70 and ideally sign in the opposite direction and then back again.
Download a template for MT4 strategy — 500 (in the archive, setting the pattern >>)
The indicators are not attached, because they will be installed on schedule automatically after a set pattern with the desired settings (as there are in any MT4 by default).
