Forex Strategy «Method of triple-A»

Forex Strategy «method of triple-A», the author argues, on average, can earn 600 points every month and it is intended for the currency pair GBPUSD, trade is conducted on the range H4. On the average for each month is about 15 trading signals (their profitability ranges from 500 to 1500 points).

Forex indicators forex strategy for «Method of triple A»:

• Exponential Moving Average EMA (5) — blue color, applied to a Close.
• simple moving average SMA (10) — red, applied to a Close.
• Oscillator Bill Williams Awesome Oscillator (AO)
• Oscillator Bill Williams’ Accelerator Oscillator (AC)
• indicator MTF Stochastics (10,3,3)
• Support & Resistance Indicator

For ease of installation of indicators, we recommend using a template for MT4 (you can download it at the end of the strategy, together with indicators)!

Signals at the entrance to the market in this strategy is divided into 2 categories:

1) Major trading signals (or the first trading signals)

2) Trading signals on re-entry into the market (they also have 2 types — the secondary and tertiary)

Consider the main trading signals (first):

Deal to buy open at the opening of the new candles are just moving average EMA (5) crosses upward the average SMA (10) and 2 of our oscillator (AO and AU) was established on 2 consecutive bar BLUE color.

For sale — check conditions (but the yellow bars).

Figure 1: 1 — the main signal, 2 — a signal of type-2 (minor)

Secondary trading signals to enter the market.

If the color bars with 2 oscillators is reversed to the one for the main trading signal, but the crossover does not occur, and then the color changes again to the original, then you must re-enter the market (if you suddenly closed position, or smashed by stop-loss). These trading signals are relatively rare, but if they appear, there are usually large enough potential for profit.

Tertiary trading signals for entry into the market.

If any one of the bars of the oscillator changes its color to return to the original, but then again changes its color to the original (the intersection Movings not) — you should re-enter the market in that direction (if you suddenly closed position, or are blown off by the stop-loss) According to the main signals. Typically, these trading signals are very rare, but basically they give the biggest profit.

Figure 2. Figure 3 — signal the third type

Additional rules for forex strategy «method of triple-A»:

For conservative traders are recommended to make trade deals only in the direction crossing daily stochastics. This rule significantly increases the percentage of the conclusion of profitable trades. Or you can do the following — when the directions of Stochastics with trading signals — increases the volume of the traded lot (but it’s usually on request).

To trade on the pair GBPUSD — the recommended amount — 5 lots (if the size of your deposit can not enter into transactions such volume, respectively, then you can take advantage of micro-or cent accounts, as well as reduce the amount of 10 or 100 times respectively — 0,5 Auction or 0.05 lot).

The recommended initial safety stop-loss when trading — 70-80 points (or so you can install it over the next support or resistance levels — blue or yellow lines on the graph).

Profit-taking and a rearrangement of stop-loss:

1) after the formation of profit in the 40-point shift safety stop-loss at the next level of support or resistance (if it is smaller than your stop-loss).

2) After the formation of return of 65 — 85 points, swap the safety stop-loss order to breakeven (+5).

3) When the target number 1 — TP1 (+100 m) — should be closed 1 / 5 (20%) trading positions.

4) TP2 (+150 m) — closes a further 2 / 5 (40% of the original transaction), the trade position.

5) TP3 (+300 m) — closes another 1 / 5 (20% of the original transaction).

6) The last 20% close after crossing the Moving Averages in the opposite direction if it has not happened before.

Also, if the trend is not so extended, the deal should be closed immediately after crossing Movings or stop-loss.

Important additions:

1) One should not conclude a deal after passed more than 30 minutes from receipt of the trading signal and at the same price went sharply up or down the side of the transaction (the maximum allowable number of points at which one can strike a bargain — 20 points from receipt of the trade signal).

2) Do not drive a bargain if the daily stochastics is directed to the side opposite from the trading signal or it just came out from the overbought or oversold.

3) If the moving average is up to the moment when the oscillator AO and AC change their color — to conclude a deal on the 1-m bar the same color.