This forex strategy combines some of the most beloved tools that you can use in forex. It works in most of the time frames. It is perfect to be used as strategy utilizing stop loss that equals take profit. It uses statistical advantage provided by the envelopes line. Those are just defining average high and low price. The entry on envelopes line is not done randomly.
Get MT4 Expert Advisor trading this Forex strategy ↴
Backtest and optimize for any currency pair. Trade multiple instruments simultaneously, day and night.
Trade automatically, without errors and emotions. Save your time and energy.
Strategy looks for price penetrating the envelopes lines and returning back in the tunnel. It also uses strong trend filter (MACD) to further improve our success rate. But wait, there is more. Strategy also utilizes break even condition.
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.
Forex strategy indicators and tools
Envelopes. (dev 0,2 period 40) This amazing and simple forex indicator will help us to define a price that is good enough for entry. Price needs to move above the upper line. Then close back below it to trigger the short trade and vice versa for long trade at bottom envelopes line. In expert we define envelopes both by period and deviation. Change those settings to modify signal sensitivity. Apply the expert in different time frames of various currency pairs.
Break even condition (after 25 pips). After position reaches certain profit (break even after points). Strategy moves stop loss to break even condition. Effectively avoiding any loss that might occur.
Forex strategy rules
Sell
MACD histogram trending below zero. Downtrend confirmed.
Price rises above upper envelopes line. We wait for it to close back below the upper line, to enter the trade short.
Take profit: 40
Stop loss: 50
Break even after: 25
Buy
MACD histogram trending above zero. Uptrend confirmed.
Price falls below bottom envelopes line. We wait for it to close back above it, to enter the trade long.
Take profit: 40
Stop loss: 50
Break even after: 25
Get MT4 expert advisor trading this forex strategy
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.
Disclaimer: 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.
