Thanks to TFK2. A lot of people are still not realizing how much can trend actually help you in your win in forex game. In my experience correct trend identification can improve the success rate of random signal forex strategy by 15 – 30 percent. That simply means that only one thing standing between you and profits. It is your ability to stick to the rules once you identify trend.
This forex strategy is all about winning. Not only that we do not accept the loss for the first time. We do not accept it even for a third time ! Win rate can therefore get to the incredible number of 97 percent.Occasional losses are bigger, but the expectations for the strategy are still positive. So Let's look at the rules.
Used forex indicators:
Apply all the indicators in 15 min chart of EURUSD (preferably).
Major MACD (12,26,9).
Major MACD (500,1000,9)
With MACD we will be interested only in histogram, which is slightly more visual representation of moving averages. Those two MACDs will identify a trend for us. Current and major.
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Forex strategy rules
SELL:
Major MACD histogram closing below zero. Predominant downtrend.
Minor MACD just closed its first bar in negative values. This is a signal reset. MACD closing above the 0 resets the trigger.
The trigger. Strong bearish candle with narrow wicks at both its ends. Candle is wider than any of previous 5 candles.
We place pending sell order on its low, once it is closed.
Stop loss is placed above the high of signal candle. Take profit equals the candle range + 2 pips (to cover the costs of transaction).
If positions wins, we wait for signal reset (minor MACD closing above zero). If it fails we place another pending order at the same price with 2x the lot value of previous order. If the second order fails we do so once more (4x the value of initial order).
Once the third order fails we abandon that candle signal.
We place 2 and 3 order only if major MACD histogram remain below zero.
BUY:
Major MACD histogram closing above zero. Predominant uptrend.
Minor MACD just closed its first bar in positive values. This is a signal reset. MACD closing below the 0 resets the trigger.
The trigger. Strong bullish candle with narrow wicks at both its ends. Candle is wider than any of previous 5 candles.
We place pending buy order on its high, once it is closed.
Stop loss is placed below the low of signal candle. Take profit equals the candle range + 2 pips (to cover the costs of transaction).
If position wins, we wait for signal reset (minor MACD closing below zero). If it fails we place another pending order at the same price with 2x the lot value of previous order. If the second order fails we do so once more (4x the value of initial order).
Once the third order fails we abandon that candle signal.
We place 2. And 3. Order only if major MACD histogram remain above zero.
Pending order remain valid until major MACD filter conditions remains unchanged. Meanwhile, we can take another signals.
About 10 percent of positions will require a third trade to be opened.
