Forex trading strategy plus 500

Author: Consultant Finmaxfx

Plus 500 is a Forex trend trading strategy with a classic set of technical indicators. This strategy targets take-profit orders for 500 pips using the 4-digits quotes, that’s why it’s called so. The currency pair to trade with is EUR/USD and the timeframe is H4.

It’s widely known that huge trends are not easy to catch and especially to take most of the distance covered as the profit. Any beginner would target such trends right after the first market experience. This dream does not turn to the reality with time, though. It’s becoming understandable, that it’s almost unreal to catch such a trend with several first attempts. These failed deals could cause losses and potential profit coming from successful deal could turn to a zero, if not putting the deposit under water.

It’s very often that traders do not believe that they managed to catch such a big trend and they just get out of the market too early having a profitable position.

We’ll try to understand today how to use a limited number of attempts and get the profitable deal done until the full target (+500 pips) is achieved. We cannot call this Forex trading strategy as extremely profitable, of course, as negative positions could occur quite often. However, an exciting feeling of taking 3-4 deals with such a profit could add a lot of positive emotions to the profit.

Just to add some statistics, this trading strategy brought a profit of 1400 pips roughly in the previous year from May 2017 to April 2018. We’ve closed 4 deals with the full profit of plus 500 pips using this strategy.

Timeframe recommended is H4.

The currency pair to trade on is EUR/USD. This strategy is suitable for different other currencies as the authors claim. Still we did not check out the multicurrency efficiency for this strategy.

The following technical indicators are used for this Forex trading strategy:

  1. Relative Strength Index with default period of 14;
  2. Parabolic SAR with both step and maximum value at 0.03;
  3. Simple Moving Average with 70 period (MA70).

If you like this strategy, you might also be interested in this Forex Candlestick Patterns

Forex trading strategy plus 500

The conditions for LONG positions are as follows:

  • One of the candles is closed above simple moving average with 70 period. All of the further actions have to be taken only if the price remains above MA70.
  • Parabolic SAR indicator jumps below the price;
  • RSI 14 indicator is above 60 level;
  • We open LONG position right on the next candle;
  • We set stop-loss order for 80 pips below the entry point;
  • When the Parabolic SAR appears closer to the entry point, we should change the stop-loss order below the indicator’s last value. We will keep changing the stop-loss order until closing the deal according to the Parabolic SAR momentum (3-4 pips lower);
  • Once the price has moved 130 pips in the right direction, then this position has to be at least in zero loss. We ignore Parabolic SAR even if the indicator does not allow us to set risk-free mode for the position we hold;
  • Take-profit order is set for 500 pips above the entry point.
Forex trading strategy plus 500

The conditions for SHORT positions are as follows:

  • One of the candles is closed below simple moving average with 70 period;
  • Parabolic SAR indicator jumps above the price;
  • RSI 14 indicator is below 40 level;
  • We open SHORT position right on the next candle;
  • We set stop-loss order for 80 pips above the entry point;
  • When the Parabolic SAR appears closer to the entry point, we should change the stop-loss order above the indicator’s last value. We will keep changing the stop-loss order until closing the deal according to the Parabolic SAR momentum (3-4 pips higher);
  • Once the price has moved 130 pips in the right direction, then this position has to be set at least in zero loss. We ignore Parabolic SAR even if the indicator does not allow us to set risk-free mode for the position we hold;
  • Take-profit order is set for 500 pips below the entry point.

There is one more additional option to this strategy. The same direction position can be considered in case if the price at least touches MA70 on the pullback. Ideally, it’s better to see the price crosses MA70 and comes back after that.

See also:
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