In 4H chart, almost any candle opposing a trend can be considered a correction in fractal geometry of forex market. This forex strategy places pending order, aimed for trend continuation at single candle corrections. Two thing might happen:
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Trend will continue and order is triggered.
Trend will not continue and order won't be triggered.
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Strategy has a high profit factor and was tested on high quality data since 2003. According to all the tests. It is profitable (we have tested just a fraction of possible input combination). It can be also applied in different time frames. Also, it is simple and robust. Very rarely holding more than one trade at the same time.
At theforexkings, we will reveal full rules to the strategy and provide you with free expert advisor. You can test this forex strategy back and fort. Enjoy, and if you like it, let us know in the comments.
Used forex tools
Alligator forex indicator (130,80,50). Alligator will help us identify trend. All lines must be untangled and clearly separated. They must be aligned according to downtrend or uptrend. We will enter the trade only on that direction.
Candle signal (minimum size 10 pis): Candle opposing the trend with minimum size defined in EA inputs. Pending order will be placed at its low/sell or at its high/buy.
Trailing stop: trailed behind every candle close. Additional distance of 80 pips can be applied to consider the market volatility.
Stay valid: To trigger the order, price must move quickly back in the direction of trend. Our order will remain valid for 24H. If there is any hesitation, the order is canceled ! This is actually very important rule, filtering out a lot of bad trades.
Forex strategy rules
SELL
All alligator lines lined according to downtrend, from slowest at the top, to fastest at the bottom (blue, red,green).
Bullish candle will be considered to be a correction in the downtrend. We will place pending sell order at its low. Order will stay valid for 1 day.
Meanwhile, other orders can be placed at higher price while trend lasts.
Trailing stop: Once we enter the trade, we place trailing stop above the high of previous candle. It is adjusted – moved further with position, at each candle close. It can be moved only in the direction of order, never back.
Trailing stop is the only method of how to close a trade in this trading forex strategy.
BUY
All alligator lines lined according to uptrend, from fastest at the top, to slowest at the bottom (green, red,blue).
Bearish candle will be considered to be a correction in the uptrend. We will place pending buy order at its high. Order will stay valid for 1 day.
Meanwhile, other orders can be placed at lower price while trend lasts.
Trailing stop: Once we enter the trade, we place trailing stop below the low of previous candle. It is adjusted – moved further with position, at each candle close. It can be moved only in the direction of order, never back.
Trailing stop is the only method of how to close a trade in this trading forex strategy.
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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.
