The Trend Finder Daily Forex trading system allows you to perform operations with almost any instrument of this market, which allows you to choose the ones that are most convenient. The strategy uses indicators that are classic and are supplied in the standard set of the Metatrader 4 terminal.
The strategy uses the following indicators:
1. Awesome Oscillator with AO parameter;
2. The Stochastic indicator in the form of a histogram with the settings of its parameters 5, 3, 3;
3. Simple moving average with an averaging period of 200;
In general, the system belongs to the class of medium-term strategies.
The algorithm itself of this system is quite simple and the rules for opening a long position are as follows: The price of the instrument must be above the two-hundred-day average. In this case, the values of both indicators should be colored green. What do buy signals mean? In this case, the main feature is that the transaction should be carried out only on the next candlestick after the signal.
Selling rules for this strategy are opposite to buy signals. That is, the price of the instrument should be below the two-hundred-day MA, and both indicators should be red and show sell signals.
The peculiarities of exiting open positions and the peculiarities of risk management are reduced to the following points:
1. If there is no desire to lose the entire account, then no more than two positions are opened simultaneously. Moreover, the volume of opening each position should not exceed three percent.
2. Order of the Stop Loss type is a prerequisite. It is set at 100 points from the position opening price.
3. Profits need to be insured from time to time. To do this, if 50 points of profit are received after opening a position, then we put the stop loss at breakeven, and then we gradually transfer it.