There are many different types of traders. Different styles, different strategies, different personalities. But there is a certain type of trader that thrives in the trading world, not because they have good intuition or are great technical analysts, but simply because they can think in a special way. These types of traders view trading strategies as a set of rules that would cause them to trade if followed. For them, trading setups are a basic rule for questions that can be answered with “yes” and “no”. They think similarly to computer programs and have a series of "yes" and "no" questions and "if-then" actions. They are the algorithmic traders.
Although algorithmic trading is mostly associated with programmed trading robots, a set of rules that satisfy an if-then format could also be performed by a human. Although algorithmic trading is based on making the law of large numbers work for you by executing all trades that comply with the rules, the benefit of a human touch to a trading system is that a human trader can make a subjective and intuitive decision whether or not He should be made on this basis experience with the market.
Trading strategy concept
This strategy is based on some rules that can also be traded on an if-then basis.
We will use three indicators to implement this strategy.
First we will use the MACD. The MACD is used by crossing the histogram bars above the zero line. This means that we are qualified to complete a buy trade if the MACD histogram is positive or exceeds zero. If the MACD histogram bars are negative or below zero, we try to make a sale.
Next we'll use the WoodiesCCI. It is a custom indicator that is a modified version of the regular CCI. This particular indicator correlates well with the MACD crosses. We will use the WoodiesCCI as well as the MACD. We will buy if the histogram is above zero and sell if the histogram is below zero.
Finally we will use the ExponentialMovingAveragesSignal. This is a custom indicator that shows arrows as signals based on the crossing of certain moving averages. If the right parameters are set, this custom indicator also correlates well with the indicators mentioned above.
- MACD: standard parameters
- A_period: 56
- B_period: 18th
- num_bars: 550
- FasterEMA: 15
- Slow MAS: 18
Time frames: 5-minute, 15-minute, 30-minute and 1-hour charts
Currency pair: any
Purchase (Long) Trade Setup rules
- The MACD histogram should be positive or above zero
- The WoodiesCCI histogram should be positive
- The ExponentialMovingAveragesSignal indicator should print a green up arrow
- Place a buy market order at the confluence of the above rules
- Set the stop loss at the immediate support below the entry candle
- Close the deal if any of the following occurs:
- The MACD histogram is below zero
- The WoodiesCCI histogram crosses below zero
- The ExponentialMovingAveragesSignal indicator prints a red down arrow
Sell (Short) Trade Setup rules
- The MACD histogram should be negative or below zero
- The WoodiesCCI histogram should be negative
- The ExponentialMovingAveragesSignal indicator should print a red down arrow
- Place a sell market order at the confluence of the above rules
- Set the stop loss to the immediate resistance above the entry candle
- Close the deal if any of the following occurs:
- The MACD histogram is above zero
- The WoodiesCCI histogram is above zero
- The ExponentialMovingAveragesSignal indicator prints a green up arrow
This strategy is a workable rule-based strategy.
It would work well in markets where long-term trends are common. This is because all rules tend to capture long-term trends as independent indicators. Crossover strategies on which the ExponentialMovingAveragesSignal indicator is based are based on capturing long trends. The same applies to the MACD indicator and to these parameter settings of the WoodiesCCI indicator. When we make trades based on the confluence of the three, we tend to be more likely to spot a trend. If we exit one of the three reversals, we hope to remain in the trade if the trend has not yet reversed and exit at the first sign of a reversal.
However, there will be cases where a sharp reversal would result in your profits being cut compared to the exit at the peak. Two avoid this, you could exit trading if one of the two histogram oscillators, the MACD and the WoodiesCCI, shows signs of returning to their mean. Another option would be to set a firm hard profit target.
It would also be a good idea to use a trailing stop based on postponing the stop loss after each expansion phase of the market. Whenever the market moves wildly in your favor, you can shift the stop loss to the newly formed support or resistance to protect some gains.
Installation guide for Forex Trading Systems
WoodiesCCI and Signal Arrows' forex trading strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.
The essence of this forex system is to transform the accumulated historical data and trading signals.
The WoodiesCCI and Signal Arrows forex trading strategy offers the opportunity to recognize various peculiarities and patterns in price dynamics that are not visible to the naked eye.
Based on this information, traders can accept further price movements and adapt this system accordingly.
Forex Metatrader 4 trading platform
- Free $ 30 to start trading immediately
- No deposit required
- Your account will be automatically credited
- No hidden terms
How do I install WoodiesCCI and Signal Arrows Forex trading strategy?
- Download WoodiesCCI and Signal 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
- Choose the chart and time frame in which you want to test your forex system
- Right-click on your trading chart and move the mouse pointer over "Template".
- Move right to select the WoodiesCCI and Signal Arrows Forex trading strategy
- You will see that the WoodiesCCI and Signal Arrows forex trading strategy is available on your chart
* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already integrated in the MT4 indicators of the MetaTrader platform.
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