The simple price based foreign exchange system is an amazing system that created by one of the foreign exchange traders currently. It works for all pair (though, EUR/USD is emphasized) and in all market conditions. No signals are needed to exchange while utilizing this strategy. All you require is the capability to establish up the forthcoming orders.
- Position-based exchanging for any circumstance of the market.
- Trailing stop safeguard gain.
- Inadequacy of statistical evidence
How to Exchange?
- High time period diagram is emphasized as each exchanging established depends upon some calculations positioned on the current bar.
- Key figures should be reckoned first. It’s established on the present price. For the quotations with four digits after a dot the essential value is the present price divided by 10 and the rounded.
- Place forthcoming/pending buy order at present price + (2 × Key value).
- Place forthcoming sell order at present price – (2 × Key value).
- Place stop-loss for forthcoming buy order at open price minus (2 × Key value).
- Place stop-loss for forthcoming sell order at open price plus (2 × Key value).
- Take-gain for the two orders is tallied likewise to the crucial value although the present price should be multiplied by one hundred for the quotations with four digits after a dot should not be divided for the quotations with two digits after a dot. In the two scenarios the principles should be rounded.
- Following stop is also utilized to the orders and is established to 2.5 × Key principles.
- Do not fail to remember to cancel the un-triggered orders after the time span period concludes.
- If this sounds too complex, see the instance beneath.
Lets forecast the entry conditions and parameters for an instance displayed on the diagram:
- It is a EUR/USD H4 diagram.
- The current price is 1.1202; the present candlestick’s open cost is 1.1209.
- There are four numbers after a dot in the quotations for EUR/USD. That indicates that the prime value is forecast as 1.1202 × 10 = 11.2. Rounding its outcome in11 pips.
- Forthcoming purchase order level is computed as 1.1202 + (2× 11) = 1224.
- Forthcoming auction order level is computed as .1202 − (2 × 11) = 1180.
- Stop-loss for pending purchase order is computed as 1.1209 − (2 × 11) = 1187.
- Stop-loss for pending auction order is computed as 1.1209 + (2 × 11) = 1231.
- Take-gain for gross pending orders is computed as 1.1202 × 100 = 112.0 or, following rounding, 122 pips.
- Take-gain for pending purchase order is established to 1.1224 + 112 = 1.1336.
- Take-gain for pending auction order is established to 1.1180 − 112 = 1.1068.
- Trailing end for the two orders is established to 2.5 × 11 = 27.5 or, following rounding, 28 pips.
Utilize this strategy at your own risk. WindsorForex.com can’t be responsible for any losses associated with utilizing any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.