High probability strategies that produce high returns seem to be what many traders are looking for. It seems like the best of both worlds. Of course, you want to have trades that appear to be a 100% sure-footed profit and at the same time you want to have trades that can give you the best bang for your buck. But looking for such strategies might be impossible. What many profitable traders preach is to find a strategy with a decent win rate, but one that could bring you returns that are multiples of what you risked. The Holt Arrows Forex trading strategy is one of those strategies that can deliver a decent win rate and returns that can be more than double your risk.
Brings double exponential smoothing trend
The Holt Double Exponential Smoothing Trend Indicator is a custom indicator based on a modified exponential moving average. It is an oscillating indicator based on two exponential moving averages, each of which is weighted. This results in a smoothing of the moving averages, which gives traders a clearer view of the market trend.
The Holt Double Exponential Smoothing Trend indicator draws histograms based on the two moving averages in a separate window. These histograms oscillate around a center line at zero. Positive histograms indicate that the exponential moving averages indicate bullish market trends, while negative histograms indicate bearish market trends.
While this could be seen as a lagging indicator, its strength depends on how closely it is setting the trend. This is because the Holt Double Exponential Smoothing Trend indicator will only respond when the trend is already set. This makes it a great trending filter that can be combined with a free indicator that can pinpoint entries.
ASC trend display
The ASC Trend Indicator is a custom indicator based on the Williams Percentage Range Indicator. Given that the Williams Percentage Range indicator, like Stochastic Oscillators, is an overbought and oversold indicator, the signals of the ASC Trend indicator also depend somewhat on this idea. The most recent highs, lows and closing prices of the price are also taken into account.
The ASC trend indicator conveniently locates input signals by placing arrows on the price chart. Whenever a strong tendency towards bullish move is detected, an upward pointing arrow is printed. If there is a strong tendency to backward movement, a downward pointing arrow is printed.
Given the nature of the ASC trend indicator, it appears to be an excellent indicator for the generation of input signals. It shows likely trend reversals at a point where the market is more likely to reverse. If you were to notice it on a chart, it seems to produce fewer signals than most indicators, but these signals seem to be capable of generating high-yielding trade entries.
Trading strategy concept
This strategy is a combination of decent probability trades as a result of filtering based on established trends and precise inputs that could result in high-return trades.
The primary trend filter we'll be using is based on the Holt Double Exponential Smoothing Trend Indicator. Since this indicator tends to react when the trend has already been established, entry signals traded in accordance with this filter usually have a better probability than those not linked to this indicator. Hence, we will only accept trades that coincide with the trend direction of the Holt Double Exponential Smoothing indicator.
We use the ASC trend indicator for the input signal. The ASC trend indicator seems to be a fairly accurate indicator with a high probability that it will lead to strong trends. This is because, like the Williams' Percentage Range, it also takes into account the overbought and oversold market conditions. Market extremes often led to strong trends. Only ASC trend signals that match the trend direction of the Holt Double Exponential Smoothing Trend indicator are traded.
Time window: 15-minute, 30-minute, 1-hour, 4-hour, and daily charts
Currency pair: Major and minor pairs
Trading session: Tokyo, London and New York
Buy (Long) Trade Setup
- The Holt Double Exponential Smoothing Trend Indicator should print positive histograms that indicate a bullish market condition
- Open a buy order as soon as the ASC trend indicator prints an upward pointing arrow
- Set the stop loss on the fractal below the entry candle
- Close the trade as soon as the Holt Double Exponential Smoothing Trend indicator prints a downward pointing arrow
Sell (Short) Trade Setup
- The Holt Double Exponential Smoothing Trend indicator should print negative histograms that indicate a bearish market situation
- Open a sell order as soon as the ASC trend indicator prints a downward pointing arrow
- Set the stop loss on the fractal above the entry candle
- Close the trade as soon as the Holt Double Exponential Smoothing Trend indicator prints an upward arrow
This strategy is a strategy that aligns with the trend and at the same time enters a trade while considering a possible trend reversal. This results in a strategy with a reasonable win ratio and trading configurations that are multiples of the risk to trading. This enables traders to make constant profits over the long term.
Forex Trading Strategy Installation Instructions
Holt Arrows forex trading strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
Holt Arrows forex trading strategy provides the ability to spot various specifics and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume further price movements and adjust this strategy accordingly.
Recommended Forex Metatrader 4 trading platform
- Free $ 30 to start trading right away
- 2nd deposit bonus up to $ 5,000
- Unlimited loyalty program
- Award winning forex broker
Click here for the step by step XM Trading Account Opening Guide
How do I install Holt Arrows Forex Trading Strategy?
- Download Holt Arrows Forex Trading Strategy.zip
- * Copy mq4 and ex4 files to your Metatrader directory / Experts / Indicators /
- Copy the tpl file (template) into your Metatrader directory / templates /
- Start or restart your Metatrader client
- Select the chart and timeframe in which you want to test your forex strategy
- Right click on your trading chart and hover over “Template”.
- Move right to select Holt Arrows Forex Trading Strategy
- You will see that Holt Arrows forex trading strategy is available on your chart
* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already built into the MT4 indicators of the MetaTrader platform.
Click below to download:
Get download access