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Stress Free TDI System

bilbao, Mon Jan 18, 2021 9:09 pm

Timeframe: H4-D1

Relatively simple strategies used in LEDs . Of those who do not have a default in the terminal, added Heiken Ashi and TDI. In addition, using classical stochastic tagged with levels 20, 50 and 80.

The system can work on any instrument, whether currency pairs, stocks or indices. In fact, any trend tool is suitable for the job.
Selecting a larger TF allows you to spend less time in front of the monitor. For D1, for example, you need to check for a signal once a day.

TC working principle
First of all, we are looking for a strong trend. Then, wait for a slight correction. We can say, without even a correction, and the correction pulse, which we determined using TDI. After that, we will determine the continuation of the first strong push, again, using TDI.
The first push, we will determine on Stochastic. Stochastic - is, as we know, the oscillator and it has levels - 20 and 80. Typically, these levels are called overbought and oversold levels. If you are even slightly familiar with the stochastics and its basic use rules, you know that if the price is overbought, we only sell. That is, it is considered that in buying sense anymore. Conversely, when the indicator value is below 20, in pereprodannosti zone, this means a buy signal.
we will use the feedback signal in this system. That is, when the 80 will consider the purchase, and on approaching the 20 - sale. We can say, it is not standard procedure. That is, in this case, if the pulse up and the Stochastic is above 80, then we expect that very small pullback and further continuation of the first strong push.
We are looking for a push strong enough so that he could penetrate and higher levels and make stops other players / activate their orders. That is the entrance, roughly speaking, against the crowd.

The first method
According to the strategy, there are two ways to enter - one for D1, the other for the H4. Rules for both options are quite simple.

Sell signal

1. Stochastic should be below 20, i.e., oversold.
2. After that, the green line should cross the TDI red from top to bottom and thus both lines have to be below yellow. Or the green line should bounce off the red, do not cross it.

It is important to clarify what should be considered for the rebound, and what is not. We are, in fact, want to capture the situation where the green line came close to the red and bounced. Here we are just still have to deal with the rebound. That is, the lines do not intersect, but were close enough to each other, after which the green sharply changed direction.

So the red line - the entrance to the deal. Here we have stochastics in the oversold zone and the initial strong price momentum. After that there is a slight correction and the green line crosses the red top down. Stop loss we put just above (or below if the purchase) of the signal candle.

Exit the transaction we in one of three cases:

1. There was a candle Heiken Ashi different color
2. There has been a reverse crossing lines TDI
3. Stochastic has left the level of 20

In the graph below the green lines indicate the possible exit points.

Buy signal

1. Stochastic is above the level of 80, that is, is in the overbought zone.
2. TDI green line crosses the red bottom upwards, thus both lines are above yellow.

We leave when:

1. There was a candle HeikenAshi red
2. There has been a reverse crossing lines TDI
3. Stochastic left the overbought zone level

If you look at the examples of trading strategies of the author, we can see that most of it comes just 2-3 candles. At the same time, it has a 80% winning trades. So it makes sense for a long time in a position not to stay. Maximum - 2, 3, 4 candles and leave.

Meaning Stress Free strategy not only in the fact that we spend a little time in front of the monitor. But also that we do not stay long in the deal, feeling himself by greed and fear. If used in trading many couples, the signals will come enough. The author, for example, uses 28 pairs.

Also, after 25 points it is recommended to translate the stop-loss to breakeven.

Another example directly from the author of the strategy. Here we see an example of the rebound from the red line. In fact, do not cross the line. Green is conveniently situated close to the red and then rebounds.

Another example from the author. Stochastic have greater than 80 and the green line intersecting red upwards. Exit at the first red candle HeikenAshi.

The second method
This method is used in the H4 charts are not recommended to use it for daily charts. Also, the second method should only be considered if there is no signal for the first method.

So, what's the difference from the first method? All indicators and output rules remain. But, given the specificity of H4, in particular, as a faster timeframe, we will use other levels of stochastics. To purchase, Stochastic has to be around the level of 50 or higher. TDI rules are stored.

1. So, here we have a sufficiently strong initial momentum. We see that the Stochastic is above 50 and the correction ends intersection TDI lines. Red line indicates the signal candle, enter the next after it. Stop-loss, as we remember, we expose below the low of the signal candle. In this case, the transaction would beat out on foot.
2. Similarly, the same rules are entering the next correction. Stochastic above 50 and the green line crosses the red upwards. Exit the trade when a red candle HeikenAshi, or reverse the intersection of TDI.

Additionally
You can also go out on time. For example, if the transaction in the profit and 3 candles in a row close to our side, close the position.

Money management is an absolutely classic strategy. Recommended classic 2-3% per trade.

conclusions
The strategy is simple, based on clear principles. strategy author has kindly provided a special template with all the necessary indicators, so you just have to install it on a graph. The practical application of the strategy should not cause difficulties, given the higher timeframe. Because the simpler strategy, the harder it is to break the time. In other words, the more chances it has to resist for a long time and much less chance of human error. In fact, the simpler mechanism, the harder it is to break. The strategy is remarkable by the fact that we are going against the stereotypes stochastics. That is, we are going against the crowd, and the crowd, as you know, lost in most cases. These are the laws of the market.
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