Every trader has their own favorite strategies for trading on the Forex market. However, as the competition is getting fiercer, still they keep on looking and trying new things. Today, we introduce you a Forex Strategy named "Puria Method" – a simply effective trading system which may improve your profitability to earn at least 50 pips a day.
The method is a specially good fit for daily taking-profit traders. In order to serve such a behavior, a Forex strategy must be simple enough to be set up quickly and show clear indicators for buy-in and sell-out orders. “Puria Method” requires only three Moving Averages with different periods and one MACD, which are available in popular trading software like Metatrader 4.
Installing the machine:
1. Set the MAs on the hour (H1) or half-hour (M30) charts - depending on the conditions above: - Moving Average 1 : Period MA - 85, Method MA - Linear Weighted, apply to Low, color Moving - choose red. - Moving Average 2: Period MA - 75, Method MA - Linear Weighted, apply to Low, color Moving - choose red. - Moving Average 3: Period MA - 5, Method MA - Exponential, apply to Close, color Moving - select yellow.
2. Set the MACD indicator with the following parameters: Fast EMA 15, Slow EMA 26, MACD SMA 1.
Conditions for purchases in the “Puria Method”:
1) Make a buy-in order as soon as the yellow moving average crosses the two moving averages upward and the confirmation from the MACD indicator is received (one bar closed above the Zero level) 2) Set a stop-loss at 14 pips. A deal closed as the stop-loss happened is very rare. 3) Close the deal when the exchange rate meets the take-profit point as the details mentioned above. In this example, we take the AUD – JPY, therefore, the take-profit point is 15.
Conditions for sales in the “Puria Method”:
1) Make a sell-out order as soon as the yellow moving average crosses the two red moving averages downward and the confirmation from the MACD indicator is received (one bar closed below the Zero level). 2) The take profit and stop loss points are set the same as above.
Important rules when applying this strategy:
• Opening one position at a time is a high recommendation. • Don’t enter the market until the candle of confirmation is totally closed. • The order’s expiration should be set in eight hours on the 1-hour chart. • All signals must be received within one trading day. • The maximum risk for each transaction shouldn’t be more than 2% of your total balance.
Pros and cons of the strategy
• Provides easy-to-spot indicators for intraday traders. • Requires popular built-in indicators. • Easy to install and follow. • Provides a detailed guide to make decision on buying and selling.
• Necessitates daily, even hourly market observation. • Requires patience and good emotion control.
The “Puria Method” is an effective technical strategy with quality signs and visual indicators. Given the H1 time interval and the recommended take-profit plan, this strategy is incredibly suitable for intraday traders. Coming with many advantages and a very specific profit threshold for each day and each currencies pair, this is another a good shot to consider among other effective strategies. As usual, to remember exactly the signal movements and adhere strictly to the mentioned rules are compulsory for a success in this game.