Forex Strategy «Schaff trend» is hardly something revolutionary and new, but it is quite profitable and easy for a considerable time, and it is based on the same display schaff trend cycle, which is supplemented by an indicator stochastic.
Due to some features of the indicator, we were able to test period, only from August 2015 and until the end of the same year, for a total of 5 months (currency pair eurusd). During this period, the strategy for the indicated amount of take-profit showed results in the area of 650 points. Also, this trading system can be applied to the more important value take-profit, but then the drawdown may be delayed, although the rate of release of these increases.
Time interval — H1.
Multicurrency strategy — will suit any currency pair.
Indicators:
1) Indicator Schaff trend cycle with MAShort parameters — 36; MALong — 72; Cycle — 10. Similarly to this indicator should be added to the levels of 10 and 90.
2) Stochastic indicator with parameters 21; 9; 9.
Conditions for entry to BUY by the rules «Schaff trend» strategy:
1) Once Schaff trend cycle indicator comes from reducing the cycle, that is above the level 10, we get the spark closing the main signal at the input, which must be verified and the second indicator, in this case an indicator Stochastic.
2) If at the time the main signal from the Schaff trend cycle indicator lines Stochastic indicator gradually increasing, and the red line is below the blue, the main signal is confirmed. If the stochastic indicator has reached a level of 80 or movement can hardly be called smooth (ie line ragged, with a sharp change in direction or even intertwined), then the signal is ignored.
3) If at the time the main signal from the Schaff trend cycle indicator it also confirmed indicator Stochastic, at the opening of the next candle is the deal on the purchase.
4) Stop-loss — 35 points.
5) Take profit — 70 points.
6) After passing the 30 points in the positive zone deal translates to breakeven.
7) Active orders do not interfere with opening new business, even in the opposite direction.
Conditions for entrance for SELL at forex strategy under consideration:
1) When the Schaff trend cycle indicator goes out the growth cycle, ie is below its level 90, at the close of H1 candles we get the main signal at the entrance to the market, which must be confirmed and the second indicator, in this case, the oscillator Stochastic.
2) If at the time the main signal from the Schaff trend cycle indicator lines Stochastic indicator gradually reduced, and the red line is above the blue (the same indicator), the main signal at the entrance to the market is confirmed. If the stochastic indicator has reached a level of 20 or movement can hardly be called smooth (ie line ragged, with a sharp change in direction or even intertwined), then the signal should be ignored.
3) If at the time the main signal from the Schaff trend cycle indicator it also confirmed indicator Stochastic, on the immediately following opening hour candle is the deal on the sale.
4) Stop-loss is set at a distance of 35 points from the entry point into the market.
5) The order of profit taking — Take-profit set at a distance of 70 points from the entry point into the market.
6) After passing the 30 points in the positive zone trade should be transferred to breakeven.
7) For active orders (in the market) do not interfere with opening new transaction according to the rules of this strategy, even in the opposite direction, from the already open.
- Download forex indicator — Schaff Trend Cycle (archival)
- Download the template MT4 — schaff_trend (as in archive)
