This is a simple and conservative forex strategy that can be applied on any currency pair. Its rules are robust, time tested and with positive risk reward ratio. Strategy was tested on over 13 years of high quality historical data of EURUSD pair. However, it is clear that the set of rules is universal and can be therefore applied on any Forex instrument.
This simple forex trading strategy was tested by Awesome MACD momentum MT4 EA developed by our team. This EA can be used for testing , optimization and trading of this forex strategy on any currency pair and any timeframe. AMM Expert advisor was shortlisted to become part of our Victory Trail EA (complex trading system consisting of 8 of our best trading robots). Tools and indicators used in forex strategy MACD histogram is used to accurately define current market trend and momentum. Once we define the trend Awesome histogram coupled with robust candle signal is used to time our entry and exit. Trailing stop is used at all the times both to secure the positions and protect already gained profits.
This forex strategy was tested in 1H chart of EURUSD. Using the Awesome MACD momentum. Expert advisor can be used to optimize it for any other currency pair and to trade it automatically and simultaneously.
MACD signal (260,120): We consider MACD histogram only. Histogram bar must close below the zero value for short entry or above the zero value for long entry. Histogram bar must be larger than previous histogram bar.
Awesome oscillator signal: Awesome histogram closing below zero with last bar closing higher than previous histogram bar – enter long. Awesome histogram closing above zero with last bar closing lower than previous histogram bar – enter short.
Closing awesome module: Opposite awesome signal for entry occurs, while trend might still last. To close with awesome, position must be in profit defined by profit points for awesome.
Profit points for awesome (300 points): Minimum profit points to allow close position on awesome signal reversal.
Signal candle (body size 300 to 1500 points): Candle with defined body range (min/max) closing in the direction of trend (defined by filter). Candle must surpass previous low/high in the direction of trend.
Volumes: Volumes on signal candle must be greater than on previous candle.
Universal trailing stop (Extra deviation for the trail stop). Based on last closed candle high for short trade and candle low for long trades. Extra deviation can be applied to put TS further away from the entry. TS will be adjusted with each consecutive candle close, only in the direction of winning trade.
We open only one trade at the time per currency.
MACD histogram must close below zero. Last MACD Histogram bar closing lower than previous bar. Signal: Bearish candle with defined body size. Awesome histogram bar closing above zero, while closing lower than previous histogram bar at the same time. Volume on signal candle is bigger than on previous closed candle. We enter the trade immediately on new candle open. Trailing stop is placed on last closed candle high + extra deviation for TS above. Position is closed either by awesome closing methodology or with trailing stop. BUY
MACD histogram must close above zero. Last MACD Histogram bar closing higher than previous bar. Signal: Bullish candle with defined body size. Awesome histogram bar closing below zero, while closing higher than previous histogram bar at the same time. Volume on signal candle is bigger than on previous closed candle. We enter the trade immediately on new candle open. Trailing stop is placed on last closed candle low - extra deviation for TS below. Position is closed either by awesome closing methodology or with trailing stop.
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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.