Forex Inverse Trend Following Strategy
Forex Inverse Trend Following Strategy:
Inverse Stochastic Strategy is a trend following strategy based only on two indicators Stochastic buy sell arrow and precision trend. Inverse stochastic because I have inverted the setting oversold area level 15, overbought level 85 in this way the the stochastic is a trend indicator. This is a method for signals but not an strategy. The signals that this setting of the stochastic are trend following.
Time frame 30 min or higher.
Currency pairs: EUR/USD, GBP/USD, USD/VAD, NZD/USD, AUD/USD, GBP/JPY, GBP/CAD, GBP/NZD, USD/CHF, EUR/JPY, EUR/NZD, USD/JPY, GBP/CAD.
Metatrader indicators
Stochastic buy sell arrow oscillator (oversold area level 15, overbought level 85, 5,3,3).
Precision trend (30 period, sensitivity 3.0).
Trading rules Inverse Stochastic Strategy
Buy
Stochastic buy sell arrow buy arrow.
Precision trend red bar.
Sell
Stochastic buy sell arrow buy arrow.
Precision trend red bar.
Exit trading signals
Stop loss 10-20 pips below the entry bar depens by time frame and pairs.
When there is the 65% of gain move stop loss at the entry price.
Profit target 15-80 pips depends by ime frame and pairs.
The advantage of this strategy is that very simple.
The disavantage is that can generates false signals when there is a flat market.
This idea of trading signal cam be improved.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Inverse Trend Following Strategy?
- Download Forex Inverse Trend Following Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Inverse Trend Following Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.