Low-risk Forex strategy
Currency: Majors
Indicators:
14 EMA
21 EMA
50 EMA
Bollinger Band (20, 2)
BUY Rules:-
On a 5 minute chart check if 50 EMA is within Bollinger Bands. If yes then check if 14EMA is above 21EMA and 21EMA is above 50EMA.
If above condition is met then check the same on 30 min-chart. If everything is good on 30 min chart then check same on 1 hour chart.\
SELL Rules:-
Reverse Rules. i.e you have to see if 50EMA is above 21EMA and 21EMA is above 14EMA.
TP and SL Rules:- You can set TP and SL according to ur risk/reward ratio or u can also exit trade when any of the above condition is violated.
Originally posted by illiterateCurrency: Majors
Indicators:
14 EMA
21 EMA
50 EMA
Bollinger Band (20, 2)
BUY Rules:-
On a 5 minute chart check if 50 EMA is within Bollinger Bands. If yes then check if 14EMA is above 21EMA and 21EMA is above 50EMA.
If above condition is met then check the same on 30 min-chart. If everything is good on 30 min chart then check same on 1 hour chart.\
SELL Rules:-
Reverse Rules. i.e you have to see if 50EMA is above 21EMA and 21EMA is above 14EMA.
TP and SL Rules:- You can set TP and SL according to ur risk/reward ratio or u can also exit trade when any of the above condition is violated.
Nice sharing. But we might get caught in fake signals coz of leading indicators used in this system. It looks good for trendy market but will cause trouble in ranging market.
Originally posted by SashaNice sharing. But we might get caught in fake signals coz of leading indicators used in this system. It looks good for trendy market but will cause trouble in ranging market.
I agree. I think use of MACD or RSI will be useful with this strategy.
@illiterate:- thankyou for sharing
Originally posted by Jogi
Originally posted by Sasha
Nice sharing. But we might get caught in fake signals coz of leading indicators used in this system. It looks good for trendy market but will cause trouble in ranging market.
I agree. I think use of MACD or RSI will be useful with this strategy.
@illiterate:- thankyou for sharing
Yes more indicators can be used but it will make it more complex. Use the current strategy and if it doesnt produce good results, u can modify it according to ur style.
Yes more indicators can be used but it will make it more complex. Use the current strategy and if it doesnt produce good results, u can modify it according to ur style.
Yes. I agree. I think users should check this system first. Review results and if u see that u r trapped in false signals more often then add MACD and/or RSI.
The good or ill of a man lies within his own will. – Epictetus
Thx for sharing the system.
I have a question. Isnt it hard that 5 min, 30 min and 1 hour chart follow same trend and meet all conditions. I think it will be once or twice a day scenario. We assume that it happens twice a day. But then we will gain very low amount of pips per trade if we follow the same rules. Coz conditions will be voilated very early on a 5 min and maybe 30 min chart too.
This is a big drawback of this strategy coz it doesnt have proper SL and TP strategy. Maybe u also need to redefine trade entry rules.
Stick to your rules
Originally posted by uniquetraderThx for sharing the system.
I have a question. Isnt it hard that 5 min, 30 min and 1 hour chart follow same trend and meet all conditions. I think it will be once or twice a day scenario. We assume that it happens twice a day. But then we will gain very low amount of pips per trade if we follow the same rules. Coz conditions will be voilated very early on a 5 min and maybe 30 min chart too.
This is a big drawback of this strategy coz it doesnt have proper SL and TP strategy. Maybe u also need to redefine trade entry rules.
Yea. I agree. It is very hard that all timeframe follow same trend.
Good point uniquetrader.
The good or ill of a man lies within his own will. – Epictetus
@ illiterate. Have u tried it urself? If yes then how many trades on average r opened by this system each week?
Thx for sharing.
This strategy is very similar to another strategy in this section which uses SMAs. But in this strategy multile timeframes r used which r, most probably, to lower risk. But use of 5 minutes timeframe makes sense only when market is highly volatile and there is a lot of movement within 5 minutes.
It’s a huge challenge to keep the risk down, so we have to make a lot of effort into that in order to gain. I do it quite easily and confidently which is through broker like OctaFX since they have outstanding set of schemes from lowest possible spreads at 0.1 pips for all major pairs, zero balance protection, market analysis on daily and week basis and there is even smooth trading platform like cTrader which is especially developed for ECN trading which helps with handling the risk.