Forex strategy «Trading Made Simple(r) modified» is quite a popular trading system. After analyzing it and looking at some of its variations, we still made some adjustments and clarifications to the initial version to make it safer (in our opinion).
In any case, the system is quite interesting and can serve as a good start for beginner traders.
Statistics:
From September 2019 to September 2020, the trading system for only one GBP/USD pair showed a positive result in the region of +4000 points. Risking 3% of the initial deposit per trade, this would amount to 140%. The percentage indicator is more adequate, since the stop in this system is floating and can be either 25 points or 150.
- Currency pair — is a multi-currency strategy.
- Time interval — H4.
Indicators (template and indicators for quick installation in MetaTrader 4 you can download at the end of this article):
- Synergy_APB indicator.
- Heiken Ashi indicator.
- HMA indicator.
- The exponential moving average indicator with a period of 5 and a shift of 2.
- Stochastic_Color_v1.02classicC indicator with parameters 14;3;3;2.
- Stochastic_Color_v1.02classicC indicator with parameters 8;3;3;2.
- RSI indicator with a period of 14.
The last three indicators are displayed in one window.
Conditions for buying according to the «Trading Made Simple(r) Modified» strategy:
1) The price is above the moving average.
2) 2 stochastics are above their zero mark. But only one of them can enter the overbought zone.
3) The RSI indicator is above the 50 level.
4) The Heiken Ashi indicator is blue.
5) Synergy_APB indicator is blue.
6) The HMA indicator has changed its color from red to green and is above the moving average.
The order in which signals are received does not matter!
7) To enter in the same direction, you need the HMA to change its color to red, and then turn green again, provided that the other indicators still support a buy signal.
8 ) Stop loss is set below the low of the last two candles, but not less than 25 points.
9) Take profit is twice the stop. However, if the TP is less than 100 points, then we set it in the amount of 100 points.
10) If the NMA indicator changes its color to the opposite, and the deal is in the positive zone, then the deal is transferred to breakeven.
11) If the intangible asset indicator changes its color to the opposite, and the transaction is in the negative zone, then the transaction is closed at the market price.
12) If there is an active trade that has not yet been moved to breakeven, and the strategy gives a new signal, then it can be considered only if 80 points have already been passed in the positive zone. The previous transaction is immediately transferred to breakeven.
Sales conditions:
1) The price is below the moving average.
2) Both stochastics are below zero. Only one of them can enter the oversold zone.
3) The RSI indicator is below the level of 50.
4) The Heiken Ashi indicator is red.
5) Synergy_APB indicator is red.
6) The HMA indicator has changed its color from green to red and is also below the moving average.
The order of receiving signals from the indicators does not matter!
7) To enter the same direction (sell), you need the HMA to change its color to green, and then turn red again, provided that the other indicators of the standing system still support a sell signal.
8 ) Stop-loss order is set above the high of the last two candles, but not less than 25 points from the entry point into the market.
9) We fix the deal at the take profit, which is 2 times more than the stop loss. But, if the TP is less than 100 points, then we put it at a distance of 100 points.
10) If the NMA indicator changes its color to the opposite, and the deal is still in the «+» zone, then the deal is transferred to the breakeven point.
11) If the intangible asset indicator changes its color to the opposite, and the deal is still in the «-» zone, then the deal is closed at the current market price.
12) If there is already an open trade, which has not yet been transferred to the breakeven point, and the market situation gives a new signal, then it can be considered only if 80 points have already been passed in the «+» zone. The previous transaction, at the same time, is immediately transferred to breakeven.
Video version of Forex Strategy «Trading Made Simple(r) Modified»:
Recommended to watch with English subtitles!
- Download MT4 template — Trading_Made_Simpler_mod_tpl (archived).
- Download indicators — indicators_Trading_Made_Simpler_mod (also in the archive).
