Strategy based on modified tunnel with extremely well working profit and loss targets. Envelopes are used to draw a tunnel while RSI indicator helps to pick the direction for entry. According to high accuracy historical data testing, strategy is profitable and with excellent risk reward ratio.
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.
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.
At theforexkings.com we provide you with full strategy rules together with free expert advisor trading it. Use it to adjust the settings for different time frames and currency pairs. Our tests were run solely for EURUSD tick data (1H) since 2003 with interesting results.
Used tools and indicators
Following settings were used with best results in our tests, however it is clear that there are 1000+ more profitable settings for eurusd 1H alone.
Relative strength index (RSI 100). Indicator will help us determine current market momentum/trend. We do so by drawing a range in the middle of indicators window (around 50 value). Price trending either above or below it will signalize sufficient momentum to enter a trade in respective direction. Modify buy above/sell below input in expert advisor to adjust this setting.
Envelopes. Moving averages based on average high/low price. Entry is done on envelopes tunnel high/low price basis (dev 0,2, period 40). Once we draw a tunnel for signal we use an envelopes target multiplier (6) to draw a second tunnel. The second tunnel is drawn with multiplied deviation (0,2 *6) to provide us with profit and loss targets.
Envelopes target multiplier (6): Multiplies a deviation for second envelopes tunnel that is used both for profit and loss targets. The larger the second tunnel the wider the targets for loss and profit.
Break even condition (After 30 pips) Strategy uses break even condition to protect the position from turning into a loser. Stop loss is placed at entry level once the trade reaches predefined profit.
Forex strategy rules
RSI trends below sell below zone (50). Downward momentum is dominant in the market and we will enter short trades only.
Price penetrates the upper envelopes line. Once it closes back above it, we enter the trade short.
Stop loss is placed at upper line of second envelopes that were drawn with wider deviation.
The bottom line of second envelopes is used for target profit placement upon entry.
RSI trends above buy above zone (50). Upward momentum is dominant in the market and we will enter long trades only.
Price penetrates the bottom envelopes line. Once it closes back below it, we enter the trade long.
Stop loss is placed at bottom line of second envelopes that were drawn with wider deviation.
The upper line of second envelopes is used for target profit placement upon entry.
Get MT4 expert advisor trading this forex strategy
For best results, 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.