Algorithm strategy Forex "Boomerang":
This forex strategy is based on a combination of traditional Forex strategy on the breakdown of the elements of Martingale. The purpose of the strategy "Boomerang" is to identify small targets and profit receiving this income. Making a profit in the forex trading strategy is very closely connected with money management (as Trade is conducted by the method of Martingale), which will still be discussed below. This trading system is unique in that by trading on it, we can take small profits in sideways markets, as well as big profits in trending markets. This system was developed more polutara years, long has been modified, as well as changed its components.
Installations for the work on strategy, "Boomerang" is very simple, very well trading system can be used in all types of traders FOREX. Ie: those who like to sit all day behind the monitor, can trade on it during the day. But those who do not like to be a long time before the screen monitors would be able at any moment to close the bargain, and when they return to the computer in his spare time, will be able to open a new trading position.
I think you will find it helpful to this type of trade.
Main characteristics of the trading strategy forex "Boomerang":
- H4 - 4-hour chart (GBPUSD or GBPJPY)
- H1 - hourly chart (GBPUSD or GBPJPY)
- EMA (blue color on the closing prices, applied to 4-hour chart)
- Microsoft Office Excel - attached table at the end of this trading strategy.
The deal on forex strategy "Boomerang":
All entries into the market based on the 4 hour chart. All pricing schedule is designed to more closely examine trade deals already, after they were concluded. We also can fully replace the hourly chart, graph any lower than the 4-hour time slot.
Rules for the opening of trading positions on the "Purchase":
- The price must be higher than the EMA on the 4 hour chart.
- The price must be higher than the median prices of the previous 4-hour bar on the graph.
Or
To re-enter the forex market - by opening a long trading position is the fact that the previous trade deal, which was closed by the stop was just a short trade.
Determining the size of trading positions, take profit, safety stop-loss on forex strategy "Boomerang."
To do this we need to book Excel (at the end of the strategy). Assume that we have matched all the basic criteria for opening a trading position to buy. The current price for a 4-hour bar 1.9936.
A few comments: it is desirable that the price was the opening price, immediately after having been closed the old 4-hour bar. This price must be higher than the median prices of the previous 4-hour bar. Once you have found these basic criteria, you enter a value in the table excel, where there is written - "entry price" - "Entry Price", then choose a bargain that we want to open it - the "long" - long. Then in the windows of the book will value your profit and stop-loss. So, you open the first bargain at the price of 1.9936 to buy. The first profit target at 1.9946, and safety stop-loss order at 1.9931. If this deal zaklyta on foot, then your new deal will be "short" - up for sale, its price is 1.9931, take profit 1.9916, and safety stop-loss 1.9936 and so on. The aim of the strategy is that by opening one of the trading positions in a series of transactions, to catch a break and enter into a profitable bargain. Pay attention to the fact that the profit target is growing with each new otkryvatoy deal.
You can imagine that a very small 10 pip profit, to strive to earn it ... There is a method that allows you to increase your profits if you are caught in a strong trend towards open your trading positions. As soon as your profit on the position reached its goal of 10 pips, you can place a trailing stop at 5 pips, lot size is determined at the same time your risk tolerance.
For example, if you placed a bargain at 10 lots, after the price on the chart has reached its goal of profit 10, you close the five lots (or 50% of the open transaction), the following open lots are distributed as follows: 2 lots - on a trailing stop 10 points, 2 lots - on a trailing stop - 15 pips, 1 lot on a trailing stop - 20-25 pips.
This will give you a very good hedge against the losers, and along with it, to catch a strong move, albeit a smaller number of CMV transactions. But do not worry if you can not catch a strong trend. Your next entry in the market will already be in the next 4-hour candle. The worst scenario would be closing 50% of open trade with a profit of 5 points ....
Thus, the sum (% of trading positions on the left - the right amount of Trailing Stop)
50% - take profit 10 pips
20% - 10 points
20% - 15 points
10% - 20-25 points
You can either close the trade position with the end of the trading day, or wait until the next trading signal on a 4-hour candle.
Rules for the opening of trading positions for sale:
Price should be under the EMA on the 4 hour chart.
The price should be lower than the median prices of the previous 4-hour bar on the graph.
Or
For re-entry into the forex market:
If the previous transaction for the purchase was closed by the foot.
Determining the size of trading positions, profit, stop loss be carried out as described above, to open "position to buy."
An example of the transaction.
On the chart shows examples of the opening of the first transaction only "short" and "long".
Examples of the real deal.
We open a trading position at the bar, after the price is above the exponential moving average EMA, as well as more than the median price of 4-hour bar.
Let us imagine that the bar is not yet fully formed, but only opened. Circled bar - this is nothing more than a bar opening trade deal, while the bar, labeled by the Fibonacci - this is the bar, for which we determine the median value. After the bar opened at a price of 1.9672, when we open a long trading position, we bring the data into a table excel.
Thus, our profit target is located at 1.9682. Place trade order and see what happens. For observation, we use a graph of smaller trading period.
We have opened a bargain at the price of 1.9672. The price went up, so a safety stop-loss has not been activated. After achieving a profit, we close 50% of our open trading positions. Price continued to grow. Next 20% of deals were closed with a trailing stop at 1.9682, with the remaining 20% trailing stop at 1.9694, and the final 10% of treling-stop at 1.9690. That is, If you traded 10.0 standard lots, your profit on this trade deal would have amounted to 1,320 dollars, or about 660 dollars for 1 hour trading.
Of course, things are moving so well not always ...
Now we consider the example of the transaction, which was closed by the stop and rolled in the opposite direction from the first.
So, on a 4-hour chart, we found a candle that opened above the EMA and also closed above the previous candle. The median price - 1.9782. Submit these data to a table in the program excel.
Watch what happens next:
The price reached the level of stop-loss, and follow the rules of the strategy "Boomerang" was opened trade in the opposite direction from the first transaction. The new take-profit compensates us old loss of 5 points, plus the goal of the transaction must byt10 points. Thus, the 1st profit target is 15 points. Fortunately, the second time safety stop-loss has not worked. 50% were closed at a price of 1.9762 (ie, compensation Stopped + 10 points), second 50% were closed with a net profit of 5 points in connection with the formation of "spikes" on the chart. Suppose, if you trade 10 lots for the transaction you would earn $ 750 or $ 375 in 1 hour trading.
The same concept of trade in this trading strategy is applied to those cases where our open position is closed by the stop, not once, but several. You deploy a trading position in the opposite direction, defining, with new levels of safety stop-loss and profit. During his time on the forex strategy has not been the case, that 10 attempts were unsuccessful reversal. While such a situation on the forex market and will happen, but the probability is small enough ...
A few tips on shopping:
1. You can use Fibonacci extension tool for measuring the median previous bar - place your levels for maximum and minimum bars and determine the level or rolling back to 50%.
2. If your forex broker offer you the service Stop and Reverse orders, it certainly can be quite helpful in your work on this strategy (unfortunately, the trading platform Metatrader 4, this feature is not available, but it is quite possible to use a simple adviser, who included as standard MT4).
3. After doubling the deposit to recommend him to withdraw earned PART.
Money management in trading strategy Forex "Boomerang."
Now I will not give a full course of money management when trading this strategy, since for it would attach the whole book. But here is a common example of how, through a competent and proper money management on the trading account, you can earn quite quickly using this trading system - "Boomerang".
The rule of money management is as follows: you increase the volume of trading positions, only when the increase amount of your initial investment in 2 times. For example, if you started trading with 6,000 dollars and trade, for example, a lot, you increase the volume of trading positions on a lot for you each earned 6.000 dollars later, that is, no sooner than when the amount of deposit 12.000, 18.000, 24.000 USD and so on. Assume that your income is only 5 points in the trading day. And in a year of trading days - 220.
If you strictly follow the rules of strategy, then something like this will increase your sales deposit on forex:
After three years of hard work from $ 6,000, and if you increase the number of lots, that's right, as stated above, you can get one million dollars ($ 1 million).
The same can recommend to you if you do not want to do all the work themselves, the adviser, who works on forex strategy "Boomerang" - adviser VF_Boomerang. (Personally, I do not care if it sold, but heard positive comments, too).