Forex trading strategy ‘4’

Forex trading strategy ‘4’ is rather simple to use and profitable at the same time. The account balance grows better in the trend price action, however, it is hard to call this strategy as the trend system in the classic understanding of this term. The strategy also brings profit during the sideways ranges with a certain small number of negative trading signals. Statistics tell that the strategy gave a positive result of +1846 pips (four-digits quotes) in the period starting from the beginning of 2018 to August of the current year. The maximum drawdown was reaching 150 pips. The timeframe used here is H1 and the best currency pair is GBP/JPY. Two indicators are used in this forex trading strategy: Fractals and Simple Moving Average with the period of 5 bars.

According to the forex trading strategy ‘4’, the conditions for LONG positions are as follows:

1. The fractal appears from the downside.
2. The third candle after the fractal closes with the bullish body and above the simple moving average.
3. The stop-loss order is set below the fractal candle’s low but not more than 45 pips and not less than 25 pips.
4. The deal is set to non-risk mode after going 25 pips in the right direction.
5. The take-profit order is equal to double-size of the stop-loss order.
6. If the next candle closes below the simple moving average and the price is in the negative zone, then the deal is closed manually by the market price.
7. An active position does not conflict with an additional deal in the same direction.

Forex trading strategy ‘4’


According to the forex trading strategy ‘4’, the conditions for SHORT positions are as follows:

1. The fractal appears from the upside.
2. The third candle after the fractal closes with the bearish body and below the simple moving average.
3. The stop-loss order is set above the fractal candle’s high but not more than 45 pips and not less than 25 pips.
4. The deal is set to non-risk mode after going 25 pips in the right direction.
5. The take-profit order is equal to double-size of the stop-loss order.
6. If the next candle closes above the simple moving average and the price is in the negative zone, then the deal is closed manually by the market price.
7. An active position does not conflict with an additional deal in the same direction.


See also:
‘Step’ Forex trading strategy.
‘Step’ Forex trading strategy.
06.12.2018
Investment strategies
“Two MA’s” Forex Trading Strategy.
“Two MA’s” Forex Trading Strategy.
29.11.2018
Investment strategies