Envelopes zones forex strategy

Bold dreams of aggressive forex traders may be fulfilled here. This forex strategy uses envelopes to create zones around the average price. Zones are used to enter multiple trades (up to 6) in increasing distance from the price. This results in final position achieving better overall entry price. System can be used also for aggressive averaging with growing leverage.

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Strategy may be used for scalping in lower time frames of for effective position building in daily chart. System considers also inevitable possibility of loss. We limit our loss by closing all trade in equity stop loss.

 

This trading system is not just a theory. It was tested on high quality historical data since 2003 confirming it profitability. We have created expert advisor trading it for our readers.

 

Used tools and indicators

Moving average convergence divergence (MACD 500,250) simple trend filter. We will be looking for MACD histogram to trend wither below (sell) or above (buy) the zero line.

 

Envelopes. Multiple levels (Period for all 100, deviation 0.2,0.4,0.6,0.8,1,1.2) We will wait for price to close outside of tunnel boundaries. Once it closes we enter the trade. Further the price closes above the tunnel (different deviation) larger the lot size can be used. In test, aggressive money management was used, with lot sizes ranging from 0,001 lot to 0,32 lot (partial martingale). This is quite risky. Strategy works just as well with steady lot size.

 

Closing module. Strategy closes all trades either in predefined profit 4 usd or loss -140 usd. There are not individual stop loss or take profit orders. Strategy manages all trades as one when closing them. The goal is to get the best possible price for our entry.

 

Forex strategy

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.

 

SELL orders

To consider opening of short trade, MACD histogram must close below the zero line.

We will be looking for price to close above the upper envelopes line. Once it returns and closes back within the tunnel we enter the trade short for that tunnel. Next trade can only be opened on tunnel with wider deviation.

Only one trade can be opened at the same time per tunnel. Max six trades can be opened.

 

All trades (including long) are closed in overall profit or loss.

 

Buy orders

To consider opening of long trade, MACD histogram must close above the zero line.

We will be looking for price to close below the bottom envelopes line. Once it returns and closes back within the tunnel we enter the trade long for that tunnel. Next trade can only be opened on tunnel with wider deviation.

Only one trade can be opened at the same time per tunnel. Max six trades can be opened.

 

All trades (including long) are closed in overall profit or loss.

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.

 

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“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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