Another strategy forex Dr. Elder «Roentgen Elder» (remember that the earlier we saw 2 of his strategy: Forex Strategy on 3 screens and Forex Strategy» Momentum Elder»), the currency pair can be any recommended timeframe — H1, testing forex strategy was conducted on the EURUSD (H1), USDCAD (H1), GBPUSD (H1), so the reports on these couples I give at the end of the strategy, other currency pairs also yield profits, but profits from them are not too stable.
In this strategy, forex basic idea is that by seeing the Bulls and the Bears by using Metatrader 4 indicators, or rather knowing the balance of power in the purchase and sale, it is necessary to carry out the deal so that our trade position has always moved in the direction of the dominant at the moment direction, ie the prevailing trend.
For example, we consider the USDCAD currency pair and all options will be given only for her, for other currency pairs are the parameters of the indicators may differ, they should select, based on historical data.
For trade, we need to be installed on the USDCAD currency pair chart following, the standard for Metatrader 4 forex indicators:
1) BearsPower (68) — it is calculated as follows: the current low of the candle is subtracted from the exponential moving average (EMA). The result of the difference is displayed as a histogram.
2) BullsPower (164) — calculated the same way: the difference between the current maximum value of the candle and the exponential moving average (EMA). The result is also displayed as a histogram
3) An exponential moving average with period 34 — EMA (34) — for the currency pair USDCAD, applied to a close
EMA (34) will serve to confirm the signal if it is pointing up — open the deal to buy if it is directed downward — we conclude the transaction on the sale. Or rather — if the price of a one-hour candle closed above the moving average — are considering a deal just to buy if the price closed below the moving average — are considering making deals to sell.
And so, let us consider the example of a deal to buy the currency pair USDCAD (H1):
1) bars (histogram), the indicator Bears are in negative zone, ie below its zero level and grow, ie previous column is lower than the next!
2) The price crosses the moving average and at the closing hour of the candle is above average!
3) Conclude a deal to buy at the opening of the next hour candle after the formation of signals (1-2)
4) Stop-loss is set at the nearest local minimum.
5) Take-profit establish the magnitude of 2-3 times more than the value of the resulting stop-loss.
6) Also, if you wish, you can use a trailing stop (Universal trailing stop, trailing stop on a trip or a standard Metatrader 4), placed at a distance of 30-50 points (for a 4-digit DC — type Forex4you or 300 -500 points for 5-znachnyhDTs — Alpari-type) depending on the stop-loss and the chosen currency pair.
7) Exit out of the deal going on stop-loss (negative or positive), take-profit or the reciprocal signal Indicator Bulls (for the transactions to purchase, for transactions in the sale — the indicator Bears).
Ie if we buy on the indicator Bears, then close the deal on the indicator Bulls, while if the maximum price for the last hour has increased (even the tail or the maximum price, not the closing price of the candles), as compared with the previous hour, and the columns display Bulls dropped or vice versa remained at the same level! — Ie kind of divergence indicator …
8) Just do not forget to observe the Money Management!
For transactions on sale — check the conditions!
And if we sell the indicator Bulls, then close the deal on the indicator, Bears, while if the minimum prices for the last hour has decreased (minimum price, rather than the closing price of candles), as compared with the previous hour, and the indicator bars Bears conversely increased or remained at the same level! — Ie kind of divergence indicator …
With these settings, forex indicators, we find the following timetable for profitability of this strategy forex Roentgen Elder «on the currency pair USDCAD:
Indicators for Metatrader 4: BearsPower, BullsPower, EMA (Exponential Moving Average) do not spread because they are present in every terminal MT4 default.
- A set of better using a template Metatrader 4 — rengen_elder.tpl (previously should be extracted!) — suitable for 4-digit forex brokers — such as Forex4you, and for 5-digit forex brokers — like Alpari
- See here: How to install MT4 template on schedule?
Tests forex strategy Roentgen Elder, we get roughly the following with advisor forex Rengen:
1) Test forex strategy Roentgen Elder «- EURUSD (H1) by Expert Advisor Rengen
2) Test forex strategy Roentgen Elder «- GBPUSD (H1) by Expert Advisor Rengen
3) test strategies forex Roentgen Elder «- USDCAD (H1) by Expert Advisor Rengen
