Forex Strategy Master: Filter potentially unprofitable trades (Part 1)
Trading System Forex Strategy Master is a collection of trend trading systems based on moving averages and other custom indicators that allow to filter potentially losing trades. Depending on your psychological type and other personal preferences, you can choose the most appropriate option, or using all the strategies, develop your own trading methodology.
Setting indicators of the system Forex Strategy Master:
- Unpack the archive with the template and indicators
- Copy the indicators in MQL4 ➨ Indicators
- A template is copied in templates
- Restart the terminal
- Open graph the desired currency pair
- Set the template named ForexStrategyMaster
The graph should look like this:
Operating Time Frame
In the trading system uses two screens. Operating timeframe - M5, senior - M15 (note that the ratio between them 1: 3). Parameters of indicators correspond among themselves as 1: 3. Without any modifications to this strategy can be traded on larger timeframes (M15, H1 and even D1).
List of Indicators
In the trading system Forex Strategy Master uses 4 exponential moving averages and two custom indicators:
- EMA with a period of 3 and shift 1 (yellow)
- EMA with a period of 5 and shift 3 (blue)
- EMA with a period of 15 and shift 3 (red)
- EMA with a period of 45 and shift 3 (gray)
- Custom indicator GHI (GainHiLo)
- Custom indicator QTI (Quick Trend Index)
Moving Averages help determine the direction of the trend and the entry point in the trade. Trading system is designed for high-frequency trading, so it is best to trade on the timeframe M5 (M1 very changeable, which may adversely affect the quality of trades). Crucial moving average - with a period of 5 and older are its derivatives (their periods are multiples of 5).
Indicator GHL (GainHiLo)
Indicator GHL (GainHiLo) is calculated based on two simple moving averages. The first moving average with a period of 13 calculated by the high prices of bars, the second (with the same period) is calculated at the lowest prices bars. When the price of bar closes above the moving average calculated on the high, on the indicator starts showing green bars up until bar closing price falls below the moving average calculated on the low.
Indicator QTI (Quick Trend Index)
From indicator QTI determines the direction of short-term trend. If the upward trend - indicator turns green when downward - then red. In the event of a lateral movement of the market indicator is gray.
Couple indicators GHL and GTI help us choose the direction of trade.
Short-term and long-term trend
Trading System Forex Strategy Master designed to trade on a trend because when we follow the market, we have the highest chances of success.
The simplest definition of a trend - "direction of the market." If the price goes up - the trend is up, otherwise - downward.
Trend always considered relative to a certain Time Frame. For example, in H1 may be upward trend, but the M5 at the same time can be downward.
In the System ForexStrategyMaster trend direction is determined using the moving average, that we will use for the identification of short-term trend and long-term.
To increase the percentage of profitable trades, we will trade only in those cases where both the above-mentioned type of trend will be directed to one side.
Mutual arrangement EMA 3 and EMA 5 show us the direction of short-term trend, and the pair EMA 15 and EMA 45 - direction of the long-term trend.
We shall assume that short-term trend is up, if the EMA 3 is located above the EMA 5. The same principle is used in the identification of long-term trend, only used Moving Averages EMA 15 and EMA 45.
For downtrend (short and long term) opposite is true.