Once the first testing results came in, we knew that this trading system is somehow special. It produces amazingly steady results, with low draw down. Even though it opens as many as 15 trades per direction at the same time, low historical draw down allows using standard lot size – which is very rare with aggressive trading system.
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This aggressive forex strategy is designed to be traded in 1H chart. It looks for counter trend candle with defined size, coupled with momentum and trend. The candle should occur against the rapid price movement and in most cases it provides the best price to enter in the rapidly moving market.
After we confirm the trend, we will be looking for demarker to pass into overbought / oversold zone. This momentum signal together with trend identification provides sufficient edge for this strategy. Once we establish the main price direction, we will be looking for candle countering the trend. We enter up to the 15 trades per direction. We liquidate in overall profit loss of the account – all trades as one !
The system was tested for profitability on high quality tick data since 2003 (1H eurusd).
Forex strategy tools and indicators
Envelopes (40 period, deviation 0,4). The primary trend filter. Price must move outside of envelopes boundaries. If it moves it within, it is likely that range is present in the chart and we will avoid entering the trade. Price moving outside the tunnel boundaries, must already have substantial momentum. We use demarker to confirm it, together with trend.
Demarker (20). Demarker oscillator is used to identify trend and momentum. Price must move rapidly and persistently for it to reach overbought oversold zone. At this point, it is very likely that it will continue to move in that direction for some time. What we need to do now, is to time our entry right. We will be looking for single candle correction to do so.
Big single candle correction (min 10 pips, max 150 pips) Candle with defined body range closing against the trend and momentum (single candle correction). Final confirmation of the signal. We will enter the trade on candle close. This candle provides rare entry opportunity in rapidly moving market that was already defined by envelopes tunnel and demarker.
Max open trades: 15 in test. We can enter multiple times. This setting has profound impact on strategies aggressiveness level.
Liquidate in overall account profit loss: Consider the account currency and lot size when adjusting this variable. For example when trading 0,01 lot with take profit of 1 USD, once you in crease lot size to 0,02 lot take profit should be increased as well to 2 USD. Same goes for the max loss. Also do not forget to put (-) before the number value.
The expert advisor should be used only on one currency pair per account, as it considers account profit / loss as a whole.
Forex strategy rules.
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SELL
Price close below bottom envelopes line. First downtrend confirmation.
Demarker closes below 0,3 line. Second trend confirmation.
While above mentioned lasts, we will be looking for bullish candle with body size between pips.
We enter on signal candle close.
Take profit: 10 usd per 0,1 lotsize
Stop loss: -200 usd per 0,1 lotsize
BUY
Price close below bottom envelopes line. First downtrend confirmation.
Demarker closes below 0,3 line. Second trend confirmation.
While above mentioned lasts, we will be looking for bullish candle with body size between pips.
We enter on signal candle close.
Take profit: 10 usd per 0,1 lotsize
Stop loss: -200 usd per 0,1 lotsize
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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.
