Moving on. Now let's describe the well-known strategy.With knew about it earlier, but paid no attention.
TRADING STRATEGY "КUKLOVOD"
All the financial experts providing consulting services to Forex traders, unanimously recommend trading a portfolio of instruments, because in this case it is possible to minimize the negative effects of market noise. Of course, the Council is correct, the question arises – how to assemble the basket? The answer lies on the surface – you can use the indicator "Puppeteer".
Today we talk about how not to depend on short-term fluctuations in currency pairs how to see global picture and to make a profit without nerves, using tactics medium-term investors.
Strategy "the Puppet master" is very simple and serves as a kind of introduction to trading via basket orders. You may to optimize that add your own filters and conditions. In General, medium-term trade baskets of currency pairs is quite interesting, because it mitigated risk and emotional burden.
Platform: Metatrader 4
Currency pairs: Majors and crosses (read more below)
Time Frame: D1
TRADING: ONCE PER DAY!!!
Rules of entry
1.We enter once for all couples groups.
2.Open position ONLY if the indicator Puppeteer is between -10 and -30, or between 10 and 30.
3.What to buy / what to sell for each currency group, see below. Also note that each basket is its own indicator. The templates below.
BASKET USD
1) the Indicator is above 10 but below 30:
Buy USDCAD, USDCHF, USDJPY
Sell EURUSD, GBPUSD, AUDUSD, NZDUSD
2) Indicator is less than -10 but greater than -30:
Sell USDCAD, USDCHF, USDJPY
Buy EURUSD, GBPUSD, AUDUSD, NZDUSD
BASKET JPY
1) the Indicator is above 10 but below 30:
Sell AUDJPY, CADJPY, CHFJPY, EURJPY, GBPJPY, NZDJPY, USDJPY
2) Indicator is less than -10 but greater than -30:
Buy AUDJPY, CADJPY, CHFJPY, EURJPY, GBPJPY, NZDJPY, USDJPY
BASKET GBP
1) the Indicator is above 10 but below 30:
Sell EURGBP
Buy GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, GBPUSD
2) Indicator is less than -10 but greater than -30:
Buy EURGBP
Sell GBPAUD, GBPCAD, GBPCHF, GBPJPY, GBPNZD, GBPUSD
Rules out
Exit the position if the indicator has reached 70 or -70 (TP). Stop loss for us will be the indicator value is -10 or 10 (opposite positions). When you exit closes all orders in the basket.
Risk management
If you have never traded baskets orders, then your risk is equal to 0.01 lots for every 10,000 units of currency on Deposit. 1 the basket.
This does not mean you have 10000$, enough$ 100 on a cent account. Compliance with reasonable money management is necessary, given the characteristics of the trading system.
MM is specified designed for those who have never traded baskets, because they can just panic from a large number of items on several pairs of plus or minus. Those who have dealt with the baskets, will select a suitable lot.
The entrances to the oversold / overbought
Amateurs to trade against the trend can experiment with the entries in overbought / oversold. I.e. to open the opposite position when the indicator is above 70 or below -70.