Strategy: Roller Coaster

Strategy: Roller Coaster

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Updated: Aug 24, 2022
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Intermediate
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Participating Indicators in 4-hour charts, for the EUR/USD:

1. Exponential EMA (close) of 200 periods.

2. Exponential EMA (close) of 3 periods.

3. MACD (7,13, 1) close. Fast EMA: 7; Slow EMA: 13; macd SMA: 1.

4. Six horizontal lines that intersect the MACD at: 0.001 ; 0.0025; 0.005; -0.001; -0.0025; -0.005.

This trading system is a trend follower. Therefore it shows good performance in 4-hour charts. It is recommended to have sufficiently wide stops in order to support possible corrections of the pair. Depending on the Backtesting carried out, you can have stops of 60 to 120 pips and limits between 100 and 350 pips. Posting outside of news hours is recommended. For a better management of the system, it is recommended to make a Back of no less than 100 data in order to “calibrate” the system to your trading style.

I. The purchase:

1. The first condition is that the 3-period EMA is “well above” the 200-period EMA (always on 4-hour charts).

2. The second condition is that the MACD histogram cuts to the nearest lower horizontal line (-0.001). This cut will define the entry price in the purchase.

3. The output will be given by the “top to bottom” slice of the histogram with the horizontal of 0.00. And the maximum profit will be generated from the cut with the horizontals 0.001 and 0.0025.

Example:

II. The sale:

1. The first condition is that the 3-period EMA is “well below” the 200-period EMA (always on 4-hour charts). The second condition is that the MACD histogram cuts to the nearest lower horizontal line (0.001). This cut will define the entry price for sale.

2. The output will be given by the “bottom up” slice of the histogram with the horizontal of 0.00. And the maximum profit will be generated from the cut with the horizontals – 0.001 and – 0.0025.

As always you can write to me to answer your questions with the greatest pleasure, and when you are successful operators I hope you will do the same with the newbies that will continue to appear and help them not to destroy meaningless accounts. Let’s Teach The Right Way To Trade Forex

Good luck and operate responsibly. Do not forget that there are no secret and magical strategies. The good strategies are those where you test them in a Backtesting in advance and then in the demo and thus avoid losing money in an absurd way.

Do not operate for operating and you will understand the markets


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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.

Course navigation

1. Roller Coaster
a. Strategy: Roller Coaster
2. Stop Loss Strategy
3. Pisco Sour Strategy
4. European Open Strategy
7. News Trading Strategy
8. FX Trading with CFDs
9. MACD Strategy
10. Countertrend Strategy
11. Martingale
12. Soldiers Strategy
14. Trendline Strategy
15. Price Action

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