Pyramiding in forex is one of the most aggressive and yet surprisingly secure method to manage your positions in forex. If done correctly you can increase you market exposure without increasing the risk you take. Therefore, it can bring amazing upside, without excessive risk. This type of forex strategy is a go.
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However managing multiple orders at the same time can be extremely difficult, and it is not something you want to do for an years to come (trust me). EA is required, simply because no human being can simultaneously manage as many positions as accurately.
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This forex strategy is brought to you together with expert.
Historical data test is showing: results from 01.01.2013 to 05.06.2016.
Forex strategy indicators and tools:
EMA (exponential moving average) period 300. A simple trend filter. Price trending below it will signalize more likely downtrend, price trending above it will signalize more likely uptrend. Entry will be done according to those conditions in the direction of trend.
EMA exit: Two EMAs, each with period of 20 will be applied on high and low of price simultaneously. Those will mark a price used for trailing stop loss.
Trailing stop loss: Stop loss for all positions (long and short separately) is trailed based on EMA exit position. Additional distance of 100 pips is used for better results.
SELL: position of EMA (high) + 100 pips
BUY: position of EMA (low) – 100 pips.
RSI: Relative strength index with period 3. This indicator will signal the price suitable for entry. Additional candle signal is used for confirmation.
Candle signal: Entry long is done on candle closing above the open of previous candle. Entry short on candle closing below the open of previous candle.
Forex strategy rules
SELL:
Price closing below EMA 300 – downtrend. Enter short trades only.
Signal: RSI rising above 70 line. Candle closing below the open of previous candle.
Ideally exit EMA (high) trends above price. (however EA does not take this condition into account – next version will.
Trailing stop: It is the only way to exit the position. It is trailed together with EMA exit applied on price high and 100 pips above it. Once the trail stop is hit we liquidate all short positions.
BUY:
Price closing above EMA 300 – uptrend. Enter long trades only.
Signal: RSI rising below 30 line. Candle closing above the open of previous candle.
Ideally exit EMA (applied on low price) trends below price. (however EA does not take this condition into account – next version will).
Trailing stop: It is the only way to exit the position. It is trailed together with EMA exit applied on price low and 100 pips below it. Once the trail stop is hit we liquidate all long positions.
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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.
