As its a new year and to new beginnings, I thought its a good idea to reboot the Simple Daily Trend Reversal strategy and start a new thread.
The first thread was very successful when it started in 2017, and also in 2018 with over 224 pages, 4463 posts, and over 1.3m views! We had many great developments, and we learned a lot. You can find the first Simple Daily Trend Reversal thread here:
As there were so many posts, pages, and new developments to the strategy, this new thread will serve as a continuation, also saving most lazy members from reading through the whole thread to be up to date.
I will try to post regularly as time allows me, and post valid set ups according to the strategy rules.
In 2018 an EA was developed which had initial success, but over a longer period of time, the lack of human intervention and human intuition was its weakness, and it failed to be profitable long term so I have removed it from the thread. I am still open to another EA being created, I do believe its possible for this strategy to be automated successfully, this will be a challenge, but challenges are certainly achievable.
Ok here is the strategy rules! 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 profitable most of the time. There are 4 main indicators that are used for this strategy.
We will trade mainly on H1 and H4 although D1 time frames can also be traded successfully.
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 when I do set a SL, I would normally set my SL at the previous swing high or swing low (previous ZigZag Arrow) and, check the pivot levels. I also pay close attention to price action. The TP can either be a fixed target (+50-100 pips depending on time frame traded) or using Fibonacci retractment, ADR %, or when there is a new confirmed opposite signal to get maximum pips. You can also set a trailing stop after a predetermined min amount of pips made, and then move SL to BE etc. I will monitor the price action the 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 ZigZag Arrow will appear and be within the pivot level zone (0-25 pips) levels, S61, S78, S100 only!
- The Turbo JSRX indicator was/is in the oversold zone (Below the 30% level) and indicating a green uptrend.
- When the candle crosses, and closes above the 10 EMA up from below, and only if the trade is still confirmed by the 3 indicators.
Rules to sell:
- A red ZigZag Arrow will appear and be within the pivot level zone (0-25 pips) levels, R61, R78, R100 only!
- The Turbo JSRX indicator was/is in the overbought zone (Above the 70% level) and indicating a red down trend.
- When the candle crosses, and closes below the 10 EMA down from above, and only if the trade is still confirmed by the 3 indicators.
So only 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 10 EMA, an order is validated, and opened.
It is also very important to monitor price action. Sometimes there will be a big fast move with the current candle shooting through the EMA, 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. Do this at your own discretion!
This strategy works, and I encourage all of you guys to try this strategy and please share your results with us. I know that this strategy can be very profitable for everyone. For now let us enjoy trading, and collecting more pips from the market!
Please only post screenshots of charts using the template provided so as not to confuse anyone.
Please be polite and respectful to all members, and lets keep the thread on topic! If you cannot follow these simple guidelines you will be removed. If you have a good idea or proposal that can improve on the strategy post it with an explanation to validate your proposal.
Please subscribe to keep updated with all latest developments of this strategy, give your feedback, and lets all enjoy success from this strategy. Green pips to you all, cheers!