According to the reviews of those who use the Forex Smart system, the strategy is quite effective and can bring very impressive profits. The strategy is applied on the EUR / USD currency pair, on a four-hour time frame. It is interesting that the strategy, with its rather high efficiency, is quite simple and easy to use.
Before proceeding to the analysis of the peculiarities of the rules of the strategy, we first note which indicators are used in it. They are as follows:
1. Moving average with an averaging period of 8 and linear weighting. Typical price is used as data source. Typical Price Formula: TP = HLC / 3. Let’s choose the color blue.
2. Moving average with averaging period of 21. The method of averaging is the same, that is, linear weighting, the data source is the typical price.
3. The Stochastic indicator. It will have the following parameters. % K = 12, period% D = 12, deceleration = 5. In addition, it is necessary to set two horizontal levels in the indicator window: 40 and 60, and set the maximum values to 100 indicators, and the minimum to 0.
4. Parabolic indicator with parameter settings:, step = 0.0026, maximum = 0.5;
5. AO-MODERN indicator
The primary signal of the strategy is the crossing of the moving averages, that is, if the short average crosses the long one upwards, then this indicates the possibility of buying, and if, on the contrary, the possibility of selling.
Additional terms of the strategy are as follows.
• In the case when Parabolic SAR is below the price, only buy deals are opened, if higher, then only sell deals.
• If the Parabolic SAR gives a signal that is opposite to the average, then we do not open a trade, but if it changes in five hours, then we open in the direction of the main signal.
• Among other things, you should not buy if the Stochastic is overbought, or sell when it is oversold.
A trade is closed by one of the opposite signals.
