MACD works very well, when it comes to finding a trend. This forex strategy uses both trend identification properties of MACD and ability of Bollinger bands forex indicator to draw a volatility dependent price tunnel. BB tunnel is then used to find good price for entry in the direction of trend
Strategy was tested on 1H EURUSD data from 01.012013 to 01.012016.
Get expert advisor trading this forex strategy
This forex strategy also uses advanced trailing stop. Trailing stop is adjusted after each candle, to protect profits and leave the price enough room for breathing. Combination of those tools is extremely effective and still safe enough.
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
Used forex indicators
(MACD) 520,240 and 50,100. Both values will define only histogram. Signal period of MACD is completely discarded in this forex strategy. Both combinations of indicator will describe the trend.
Bollinger bands (25) period 25 works very well in combination with both MACD in finding suitable point of entry.
Forex strategy rules
Open eurusd chart 1H
Both MACD histograms trending below zero. Downtrend is in progress and we will enter only short trades.
Signal: Price moving above upper BB line. We enter short placing tight stop loss 10 pips above entry. After next candle close we trail stop loss 10 pips above the high of each closed candle until its hit.
Take profit is never placed in advance, we simply let the price decide our exit with trailing stop
Both MACD histograms trending above zero. Uptrend is in progress and we will enter only long trades.
Signal: Price moving below bottom BB line. We enter long placing tight stop loss 10 pips below entry. After next candle close we trail stop loss 10 pips below the low of each closed candle until its hit.
Take profit is never placed in advance, we simply let the price decide our exit with trailing stop.
Notes: We reenter the trade as many times as necessary. Still, you can expect around 50 percent win rate with take profit being wider than loss.
We recommend you to use this forex strategy with one of our trusted forex brokers (STP/ECN with MT4 bridge).
To win you must trade with broker on your side.
Dislaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer.
TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.