Candle grid forex strategy

This grid forex strategy works for wide variety of time frames and currency pairs. It also works for wide variety of input combination. Comparing it to other grid trading systems, it is quite safe. Each position is protected with ultra tight trailing stop, starting as close as 10 pips to entry price and protecting profits as the price progresses in our desired direction.

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If the price progresses, pending orders will be in place. Each one of them protected with tight trailing stop and profit target that outweighs the risk up to 20 times. Strategy opens 12 pending orders expecting the price to continue its initial direction. Once this happens, orders will get triggered one after another, allowing for safe entry with relatively high leverage.

 

Once we enter 12th order, previous trades are already in locked in profit.

 

System uses relatively common entry rules. Strategy filter out the main trend direction using exponential moving averages tandem. Signal is confirmed by clear bearish/bullish candle closing in the direction of trend.

 

Strategy was tested on high quality tick data of 4H EURUSD since 2010. In the past we have tested similar approach in 1H chart with great results also. For those of you interested in this trading system, we have prepared expert advisor capable of trading it. The expert was also used in testing.

 

Used tools and indicators

 

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.

 

Exponential moving averages (EMA 500,250). Position of fast EMA relative to slow, will determine the trend direction. All trades must follow this trend.

 

Candle Signal (minimum 10, maximum 150 pips) strong bullish, bearish candle closing in the direction of trend. We define minimum body range to avoid flat, hesitant candles. Upper threshold in not really an issue.

 

Wick of the candle (max 15 pips) Wick at the closing side of the candle cannot surpass defined maximum size. This would signalize too much ongoing struggle for price direction.Once the signal candle closes we will open pending order grid, expecting the price to continue to move in the direction of closing candle. We will be placing pending buy stop, sell stop orders.

 

Stop loss (20 pips) and take profit (120 pips): Values will be applied for all pending orders.

 

Increments for all (10 pips): Distance between pending order in points.

 

Trailing stop extra deviation (80 pips). TS is adjusted after each candle close. Extra deviation will make it more distant for actual price, making it less sensitive to volatility and sudden price movements.

 

Stay valid (2 days): Defines how long will untriggered pending orders remain valid.

 

Forex strategy rules

 

SELL

EMA fast trending below EMA slow. We will be looking to open sell grid.

Bearish candle close (minimum body size reached). Bottom wick does not surpass maximum allowed wick size.

We place first pending sell stop order (increment for all) below the low of signal candle. We go on to place next 11 orders below the first order in same increments. Each with defined stop loss, trailing stop loss that will be adjusted with each candle close for all and take profit.

 

Untriggered pending orders will remain valid for 1 DAY.

 

BUY

EMA fast trending above EMA slow. Uptrend. We will be looking to open buy grid.

Bullish candle close (minimum body size reached). Upper candle wick does not surpass maximum allowed wick size.

We place first pending buy stop order (according to increments for all distance) above the high of signal candle. We go on, to place next 11 orders above the first order in same increments. Each with defined stop loss, trailing stop loss that will be adjusted with each candle close and take profit.

 

Untriggered pending orders will remain valid for 1 DAY.

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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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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