This strategy is based off of trading trend reversals. It requires you to be very patient and calm as confirmed set ups are few, but when there is a confirmed set up it will be very profitable most of the time. 3 main indicators and an SMA are used for this strategy, I found them free online a long time ago, and found a way to make them work together successfully.
We will trade mainly on H4 chart, although lower time frames can be used, but with lower accuracy, and higher risk, so its advised to do so with caution.
It is very important to make sure that all the indicators are in agreement for a confirmation of a trade, if not then it will reduce your probability of success.
Setting the SL & TP levels is a personal choice. For me if I do set a SL, I would normally set my SL at the previous high or low (previous Zig Zag Arrow) and I also pay close attention to the price action. The TP can be a fixed target (+50-100 pips) or using Fibonacci retractment, or when there is a new confirmed opposite signal to get maximum pips. I will monitor the price action majority of the time, and get out if I see the trend is changing and a new reversal forming. Please see below the trade rules:
Rules to buy:
- A green Zig Zag Arrow will appear.
- The MBFX Timing indicator is in the oversold zone (Below the 30% level) and indicating a green uptrend.
- The Trend Line indicator is showing green uptrend.
- When the candle crosses and closes above the 15 SMA up from below, and only if the trade is still confirmed by the 3 indicators.
Rules to sell:
- A red Zig Zag Arrow will appear.
- The MBFX Timing indicator is in the overbought zone (Above the 70% level) and indicating a red down trend.
- The Trend Line indicator is showing red downtrend.
- When the candle crosses and closes below the 15 SMA down from above, and only if the trade is still confirmed by the 3 indicators.
So basically when all 3 indicators have confirmed a valid trade, and are all in 100% agreement with each other according to the rules, and the candle crosses and closes above or below the 15 SMA, an order is opened.
It is also very important to monitor the price action. Sometimes there will be a big fast move with the current candle shooting through the SMA, in that case I would not wait for the current candle to close, and I would enter straight away to catch the rest of the move.
This strategy works well, and I encourage all of you guys to try this strategy, and please share your results. I think this strategy can be very profitable for everyone. For now lets enjoy trading and collecting more pips from the market!
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Please give me your feedback and lets all enjoy success from this strategy. Green pips to you all.
---> EDIT: Trade Explorer #1 added.
---> Week 1 update - https://www.forexfactory.com/showthr...6#post10616966
---> Week 2 update - https://www.forexfactory.com/showthr...9#post10629619
---> Week 3 update - https://www.forexfactory.com/showthr...4#post10646314
---> Week 4 FINAL update - https://www.forexfactory.com/showthr...9#post10674489
---> EDIT: Trade Explorer #2 added.
---> FINAL update - https://www.forexfactory.com/showthr...4#post10786194
Simple Daily Trend Reversal Dashboard
Fellow FF member ebeckers has kindly coded a dashboard EA that shows all the signals generated from the indicators that are used in my strategy, and it can be used for finding and confirming set ups, and then trading them manually or on full auto. See below the history of development. The latest version of the dashboard can be downloaded in the attachments.
Release notes 12/02/2018:
- Nothing major, just some small bug fixes we encountered during the tests done last cpl weeks.
Release notes 17/01/2018:
- Includes the S&R filter which you can turn on/off.
- When turned on (UseSupportResistanceFilter ) the EA will only open trades where the zigzag appears in close distance from a S&R line.
- When turned on the EA shows an extra S&R column indicating if zigzag appears at a S&R level.
- You can specify the max allowed distance (in pips) between the SR level, and the zigzag arrow with MaxPipsFromSR (default = 30 pips)
I've also uploaded the separate S&R indicator. This indicator is NOT needed by the EA. The EA has the S&R indicator internal, but the separator S&R indicator can be used if you want to view/verify the S&R levels. Simply attach it to a chart, and make sure both separate S&R indicator and EA use the same settings..
Release notes 09/01/2018:
- Code refactoring.
- Fixed trade panel, showed wrong number of pips for today's profit.
- Hopefully fixed bug where EA closed after changing settings.
- Fixed bug when no pairs where found.
- Click on pair label in open orders now opens the chart for that pair.
- Fixed issue where EA kept trying to close an order which was already closed.
- Fixed bug invalid pointer access in 'CPair.mqh' (537,17) which happened when EA was evaluating if it was allowed to do a re-entry or not.
Release notes 04/01/2018:
- New updated fresh GUI.
- Added MaxSpreadInPips. - The EA won't open/close trades for a pair if the spread on that pair is greater then MaxSpreadInPips.
- Added MaxOpenTrades. - The EA won't open more than MaxOpenTrades at any times (This is for all pairs combined)
- Added AllowReEntries. - Specifies if the EA is allowed to take re-entries after minsBetween2Trades or not.
- Added MoneyManagement method fixed amount where the EA will risk a max amount of $ per trade.
- MoneyManagement - When using FixedAmount or RiskPercentageOfAccount the money management now takes S/L and currency of the pair traded in account, so if a trade needs a bigger stop loss, then the EA will use a lower lot size and vice versa. This is to make sure we never risk more $ per trade then specified in the settings.
- Added new trailing stop method. Actually this is not really a trailing stop. It just closes the order when a specific risk reward ratio (like 2:1) has been reached.
- EA shows wrong number of pips for open orders.
- EA sometimes closed orders too late.
Also included.. a first 'Manual' for the EA which explains all settings and how things work. PLEASE read it before asking questions. If you find anything missing in the manual, things which are not clear, or you are the next Shakespeare and you can describe things much better then let me know so we can update the manual.
Release notes 28/12/2017:
- Fixed bug where EA gave multiple alerts for the same signal.
- EA now shows S/L for open trades in pips instead of price.
- EA now shows the order type for open trades with an buy/sell arrow.
- EA trade panel now shows profit in both currency and in pips.
- EA status line on top now shows version and time frame and last update time.
Release notes 22/12/2017:
- Fixed a bug that MBFX showed invalid overbought signal for sell signals.
- Fixed Trend Line sometimes was not showing valid signal on the dashboard.
- Added an SMA200 filter which you can turn on/off in the input settings.
- You can now open the chart on any pair by clicking on the label. You can even specify the template which should be used.
Release notes 15/12/2017:
- Added minsBetween2TradesOnSamePair. This setting specifies the no or minutes before a new trade is opened on the same pair.
- EA now shows the last trade made for a specific pair so we can verify if minsBetween2TradesOnSamePair setting is working ok.
- Added missing pairs to default settings.
- Changed default setting for MBFX candles from 5 to 10.
- Added email alerts.
- Changed SMA15 rule. Price of previous candle should now be above/under SMA15 to be considered a valid signal.
Release notes 06/12/2017:
- Just a small fix. EA sometimes did not pick up a signal when MBFX appeared on same bar as the zigzag arrow.
- The EA will now show a list of open orders it is currently managing, together with the # pips in profit/loss and the (virtual) SL reached so far.
- The EA will now close an order if a new opposite zigzag arrow appears. So if you have an open buy order and an sell arrow appears then it will close the buy order.
- Fixed a bug that after a restart the SL was always placed at the OrderHiddenSL and not at the zigzagarrow. When starting up the EA will now look back to find the last zigzagarrow, and when stopLossAtZigZagArrow = true it will place the SL on this arrow.
Release notes 30/11/2017:
- Added an extra column which shows the last update/refresh time.
- Just fixed a small issue where news was overlapping with the trade panel.
- And news color now tells how high the impact is. Low impact=green, Medium impact=orange, high impact=red.
Release notes 29/11/2017:
- Fixed bugs where EA did not open new orders when there was upcoming news for other currency pairs.
- EA will now show per pair when its not trading due to time or news filter restrictions.
- Added new pair filter which allows you to specify which pairs you want to trade.
- Fixed error 4107 invalid price xxx for OrderSend function.
- Fixed error 4107 invalid price xxx for OrderClose function.
- Fixed EA using price from wrong chart/pair.
Release notes 28/11/2017:
- Changed default for Trend Line and Zig Zag, MBFX candles.
- EA sending same alert every minute.
- Made SMA15 more restrictive.
- Use the Point & Digit values from the order-symbol when trailing stop loss.
Release notes 27/11/2017:
- Added news filter. (Needs FFCal indicator to be installed)
- Fixed dashboard refresh issue.
- Fixed bug with trailing stop.
- Fixed bug that EA was opening just 1 order even if there where valid signals on multiple pairs.
- Dashboard: Show buy/sell signal when all indicators are valid.
- Cleaned up code.
- Fixed bug dashboard was not refreshing sometimes when switching between time frames.
Release notes 26/11/2017:
- Added (hidden) trailing stop loss/profit.
- Fixed some false signals.
- Added auto trading feature.
- Added sending notifications to mobile and alerts to alert window (set sendAlerts=true to enable this)
Release notes 25/11/2017:
- Made it work on any time frame.
- EA will now only show pairs where setups are starting to happen. Pairs where nothing is happening are filtered out.
- You can now setup the moving average period and moving average type.
- You can configure the number candles to look back for the Zig Zag, MBFX, and Trend Line indicators.
- Fixed some small bugs.
- First version released.