CAJAPY Forex Trading Strategy - Learn How That Works

Author: Consultant Finmaxfx

Forex trading strategy CAJAPY has been developed by its authors for two currency pairs taking in count their special features. It has not been tested for other currency pairs, however, it is rather probable that this trading strategy could be profitable elsewhere. The pairs considered here hold the trend in a sustainable manner, and this fact allows to trade on the whole duration of the trend once it has been determined.

How tp use CAJAPY Trading Strategy

Statistics tell us that for the one-year period (starting from May 2017 till May 2018), CAJAPY forex trading strategy has shown a profitable performance of +2673 pips (for four-digit quotes) while the maximum drawdown was very modest - 200 pips only. Currency pairs used here are CAD/JPY and AUD/JPY and the intraday timeframe is four-hours. Technical indicators coming together with this trading strategy are MACD with modified settings (12, 72 and 9 periods) and Momentum Indicator with the period of 14 bars.

The MACD line is the faster line on the indicator. Since it reacts faster it and is more sensitive, it generally moves above and below the second line of the indicator.

Conditions for LONG positions according to CAJAPY forex trading strategy are as follows:

  1. Option ‘A’. MACD Indicator scale crosses the zero mark from downside up;
  2. Option ‘B’. MACD Indicator scale is above the zero level but still below the moving average;
  3. We expect for the initial downside movement from the Momentum Indicator;
  4. The stop-loss order is equal to 50 pips from the entry point;
  5. After moving 45 pips in the profitable zone, we move the deal to non-risk mode (stop-loss sets to the entry point level);
  6. The take-profit order is set for a distance of 100 pips from the entry price;
  7. We do not open any new positions having a current open deal which is not set to the non-risk mode yet, despite new signals’ appearance.
CAJAPY Forex Trading Strategy - Learn How That Works

If you like this strategy, you might also be interested in this Guppy Trading

Conditions for SHORT positions according to CAJAPY forex trading strategy are as follows:

  1. Option ‘A’. MACD Indicator scale crosses the zero mark from upside down;
  2. Option ‘B’. MACD Indicator scale is below the zero level but still above the moving average;
  3. We expect for the initial upside movement from the Momentum Indicator;
  4. The stop-loss order is equal to 50 pips from the entry point;
  5. After moving 45 pips in the profitable zone, we move the deal to non-risk mode (stop-loss sets to the entry point level);
  6. The take-profit order is set for a distance of 100 pips from the entry price;
  7. We do not open any new positions having a current open deal which is not set to the non-risk mode yet, despite new signals’ appearance.
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