This strategy uses three moving averages coupled in one amazing forex indicator (alligator) to properly identify trend, filtering out almost all of countertrend trades. Furthermore, accelerator forex indicator is used for position entry and timing. It works flawlessly when identifying correction and is even better in waiting for corrction exhaustion. As a result, we enter the position in the direction of the trend just after the correction.
Strategy also uses adding to the winner. This agressive tool of money management will allow you to open a risk free positions and ride the trend with as much leverage as possible.
Strategy rules
Timeframe 1 H
Alligator (jaws 26, teeth 16, lips 10), shifts for all parameters are unchanged
Accelerator (AC) default settings.
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Forex strategy rules.
We start by identifying trend.
BUY:
Alligators line aligned according to uptrend (from top): green, red, blue
During correction (price decline) within uptrend, accelerator readings were below 0 (negative). Once the first positive bar appears again, we enter position long.
Protective stop loss is placed couple of pips below previous swing low – the lowest point of correction also represented by lowest readings on accelerator indicator.
Take profit: we open new position to the direction of the trend only at higher price and if new high was reached. After opening new position we move all our positions exits to the break even of last profitable position.
SELL:
Alligators line aligned according to downtrend (from top): blue, red, green
During correction (price rally) within downtrend, accelerator readings were above 0 (positive). Once the first negative bar appears again, we enter position short.
Protective stop loss is placed couple of pips above previous swing high – the highest point of correction also represented by highest readings on accelerator indicator.
Take profit: we open new position to the direction of the trend only at lower price and if new low was reached. After opening new position we move all our positions exits to the break even of last profitable position.
