Forex Strategy Momentum Pinball - Linda Raschke another strategy (recall that earlier we discussed her strategy: 80-20, Turtle Soup), this forex strategy is quite simple and is not long, but nevertheless allows for the right to use it, make a profit on Forex market. Although just want to warn that the deal are not so much (because the signals we receive on a daily interval).
I recommend selecting a Forex Broker with terminal Metatrader4
Strategy Momentum Pinball - multi-currency (ie, suitable for any currency pair), deals are made on the signals of 2 intervals: D1 and H1
To trade on it, we need to be installed on schedule for the chosen currency pair is only one indicator forex:
1) Indicator Momentum Pinboll (MomPinboll.mq4) with the following parameters: PeriodRSI -3, PeriodROC - 1, just add a level of 70 and 30
This forex indicator is freely available online and is designed specifically for trading on the forex strategy is described.
The formula looks like this: MomPinboll = one-period ROC / trehperiodny RSI, or in other words, forex indicator is based on MomPinboll momentum of the market (the difference between today and yesterday's closing prices) - used indicator Rate of Change (ROC) with a period of 1 divided by the RSI (with a period of 3)
For ease of installation indicator MomPinboll, I recommend to download the template at the end of Metatrader 4 Forex Strategy Momentum Pinball
Now let us consider the conditions under which we will enter into transactions in accordance with the rules of forex strategy Momentum Pinball.
Conclude a deal to buy if:
1. MomPinboll indicator was at the close of day candles below the oversold 30.
2. The next day, waiting for closure of the first hour candles
3. Set Buy Stop order is closed above the maximum hourly candle with a space of at least 10-15, maximum - 20 points (do not forget that trade is conducted on the basis of the closing day candles). The distance depends on the volatility of the currency pair, the higher it is, the more padding, respectively, and for pending orders.
4. Next install a safety stop-loss at the same distance as a pending order, only now from the minimum hourly candle closed 2-day (on which we postponed the Buy Stop).
Typically, the market price should not go back to the stop-loss, but if you knock on stop-loss, you should set aside an order to buy at the price of the first order again. In most cases the second order is closed with a profit and with a good profit, if the order is of course open again.
5. If the second closing of the trading day (opening day of the transaction), we have a profit on an open position, there are several options for closing:
a) close the deal completely
b) the closing of the transaction, and the remainder in swap breakeven
a) the transaction and leave open the next day at night and out will be slightly higher than the maximum 2-day.
d) an open transaction to be closed necessarily maximum at the end of the third day!
6. If you prefer, you can just use a trailing stop to accompany a trading position (or Universal Standard MT4 Trailing Stop) at 30-50-70 points.
For transactions on sale - check the conditions!