Forex strategy «Аmbush» at first glance it might seem a bit confusing and complicated, and really for backtesting the strategy will require considerable patience and thoroughness, but in real trading the whole process is quite simple and logical: the main signal is expected at the H4 interval where we determine the direction of trade. Next on the hourly chart’s wait for the signal to the possible completion of the correction with respect to the senior trend, and already on the 15 minute chart will look just the very point of entry into the market in the direction of the trend H4.
Some statistics for the year 2015:
As we have said, the testing of this strategy is quite time-consuming process and it is for this reason we will present you the statistics only for the period from 1 September to 1 December 2015. During this period, it received 18 signals. Of these, 8 are closed on take-profit (480 points for 4-digit quotes), 9 closed on bezubytka and only 1 deal closed by stop-loss (-30 points).
- Timeframe — H4, H1, M15.
- Currency pair — recommend EUR / USD.
1) Trend indicator with period 24, deviation of 2, the strength of 13. This indicator is only displayed on the H4 chart.
2) A simple moving average with a period of 24. Only displayed on the H1 chart.
3) RSI indicator with a period of 8 Displayed only on the M15 chart.
Terms of BUY for forex strategy «ambush»:
1) I Trend indicator blue line is above the red, which indicates the presence of the upward trend. After the crossing of these lines in the same direction can be considered the input signal at intervals of less than 1 time only. Once this signal is received, it should go on the H1 chart.
2) At the H1 range in the period under review came to the next candle MA top, touched her, but closed above. This candle is considered to be the signal and allows us to pass on the M15 chart for the input signal.
3) On the 15m chart as soon as at the close of the next candle the RSI is above its level 60, is the deal on the purchase. If this condition is satisfied already immediately at the close of H1 signal candle, then you should wait for the return of the indicator below and then wait for the signal at the output above the level of 60.
4) Stop-loss is set below the previous minimum value, but not more than 35 nor less than 25 points.
5) After passing the 20 points in the positive zone deal translates to breakeven.
6) Take-profit is 60 points.
An important addition (!): The signals are no longer perceived Until a couple of hours market close on Friday. So we should not trade at the opening on Monday, then have to wait for the formation of even 2 H4 candle of the week.
Conditions for SELL in «ambush» strategy:
1) I Trend indicator red line is above his own blue line that indicates the presence of the downward trend in the market. After the crossing of these lines in the same direction can be considered the input signal at smaller intervals only one time. Once this signal is received, it should go on the H1 chart to find evidence to enter the market.
2) The second interval — H1 in the reporting period came to an ordinary candle moving average from below, touched her, but closed lower. This candle is considered to be the signal and allows you to go a shorter interval — M15 chart for the input signal.
2nd condition for according to the rules of forex sales strategy
3) On the 15m range as at the close of the next candle the RSI is below its level is 40, is the transaction for sale. If this condition is satisfied already immediately at the close of H1 signal candle, the return should wait for the indicator above and only then wait for the signal at the output of below 40.
4) The safety order — Stop-loss is set higher than the previous maximum value, but not more than 35 nor less than 25 points.
5) After passing the 20 points in the positive zone, the deal translates into zero level — rearranging it to zero.
6) Take-profit as well as for shopping — is 60 points.
Important! For a couple of hours before the close of the market on Friday, the signals are no longer perceived. So we should not enter into the transaction as soon as the market opens on Monday, then have to wait for the formation and closing of at least 2 H4 candle of the week.
Download the template MT4 — zasada (as in archive)