This forex strategy takes full advantage of any market momentum (rapid price movement) taking place in the market. It also takes measures to prevent loss and maximize profit. It does so, by utilizing trailing stop based on envelopes line. Envelopes line will also provide us with trading signal for position entry. RSI forex indicator is used to confirm the momentum.
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Strategy is provided freely, together with expert advisor trading it automatically. The EA can be used to confirm its profitability for various input combinations. The profitable result were revealed during test and those will be shared now.
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Used tools and indicators.
Relative strength index (RSI period 24). RSI will be used as momentum indicator confirming envelopes signal.
Trailing stop: Upper envelopes line for buy orders and bottom envelopes line for sell orders. Extra deviation of 20 pips was used in the test with best results.
Applied in 1H chart of EURUSD
Forex strategy rules
SELL
Price candle closing below bottom envelopes line. RSI falls below 30 line. We enter on candle close.
Stop loss is trailed on bottom envelopes line + 20 pips. The position is liquidated either in loss or in profit once the trailing stop gets hit.
BUY
Price candle closing above upper envelopes line. RSI rises above line. We enter on candle close.
Stop loss is trailed on upper envelopes line -20 pips. The position is liquidated either in loss or in profit once the trailing stop gets hit.
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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.
