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Hello friends Forex traders!
Today we will consider a simple trading strategy from our forum under the name Two Fingers (“Two fingers”). The name of the vehicle can be seen either as a sign of ease of strategy, or as the famous V – victory sign. It is based on trend following on the daily charts, at the same time, we will enter on correction, using lower timeframe. The system has already gained immense popularity because of its effectiveness.
the characteristics of the vehicle
Currency pairs: any
trading Time: around the clock
Recommended brokers: Alpari, Roboforex, Exness
the installation of the system is quite simple. It is enough to copy from the archive folder MQL4 and profiles in the data folder of the MetaTrader 4. To do this, open terminal data folder using “File” – “Open data directory”.
Then just drag the files from the downloaded archive and restart the terminal.
After that, in terminal, open the strategy profile using “File” – “Profiles” – “Two fingers”.
If done correctly, you will be able to easily switch between patterns choosing a timeframe D1.
the idea of the strategy
First of all I would like to Express my gratitude to the member of our forum with the nickname Brom , for sharing this strategy. Strategy is nothing but, as a modification technique, which makes the market reviews Edward Singatullin (one of the analysts of Alpari).
the idea of the strategy is the following. Find long-lasting trend on the daily charts, which frequently continues many days or even weeks and like any other trend it has kickbacks. We try to log into most of those pullbacks (or corrections) to, first, we had the stock price movements and, secondly, it was the reason that the price movement will continue in the trend direction. To make the entrance more precise, we switch to a lower timeframe (when looking for a point to enter).
Rules of Entry
so the first thing we need to do is identify the trend is D1. It is determined using moving averages. We will use moving averages with a period of 22 and 5. If 22 is moving above 5 – downtrend. Conversely, if 5 is above 22 moving – up trend.
to Determine the trend, we expect the formation of fractal. Classic fractal by bill Williams is composed of 5 candles, with a peak in the middle. We wait for the formation of such structures against the trend. That is, if the current downtrend, we wait until the formation of the lower fractal. On the contrary, if the trend is upward, wait until the formation of the upper fractal.
to complete the formation of the second after fractal candle, we draw a horizontal line at its maximum (if it sold), and then move on the H4 chart.
On the H4 chart we wait for a breakthrough by the OsMA indicator zero level. The price at the time of the breakdown must be located below our horizontal line. It is necessary to be sure that the trend has not changed and our forecast is still correct. If the price were higher, we would have just missed the signal.
At this point we can enter the market. But, as we remember that to enter the market is not quite reasonable, we will place pending orders. In this case, we will set a Sell Stop below the low of the signal candle. When we place a pending order, we do not lose anything in case of sudden price reversal.
Stop-Loss and Take-Profit
of Course, do not forget to set stop loss and take profit. Here the options can be mass. A good solution would be to put a stop for a local extremum on the H4 chart or the maximum of the fifth (signal) candle on the D1. If you are trading more long term, set foot on D1. In General, where a stop seems safer and wiser, where it should be.
out of position in a reverse crossing of the OsMA. Alternatively, when you reach a certain amount of profit can be transferred stop loss to breakeven and wait for back-crossing moving averages on the D1.
to determine the exit point you can use the graphical analysis and to draw the channels (as does the author of the strategy), stretch mesh Fibo on the daily chart, or use the key levels.
the additional features that you can use is adding on new breakouts. But this tactic is, again, designed for a longer time trades when the position is held for many days. The potential strategy signal is valid from approximately 1 to 3 days (author's observations of TC).
the Auxiliary Advisor
Given that currency pairs much, and eyes from a long analysis zamylivaetsya, was written auxiliary Advisor signals of potential inputs. The signal on the graph accompanied by an audible warning. Here, for example, we received a signal on the pair GBPNZD.
Given the obvious uptrend, we will enter to buy. Set the line on the low of the second candle after the fractal and go to the H4 chart.
Here waiting for crossing the zero mark on OsMA and put a Buy Stop order just above the candle where the crossing occurred. Specifically, in this case, can be ignored by this rule, given the high tail of the signal candle and place the order closer to the price. Stop loss should be placed slightly below the horizontal line, which corresponds to the closest local minimum.
the System is simple, working, aroused a storm of interest on our form, although it appeared recently. Especially suitable for those who have not so much free time, facilitated by a larger timeframes H4 and D1.
In the trade do not forget about money management, consider the risks. Given the daily charts and big feet, to risk more than 1% of the depot in the transaction not worth it. To calculate the lot you can use the calculator of the lot on our website. Also, be sure to read a forum thread where the author explains ambiguities. Besides, now we actively develop the expert on this vehicle.
Download files strategies Two Fingers
regards, Pavel Vlasov
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