Trading strategy "Perfect Virage"_EN
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Transcript of Trading strategy "Perfect Virage"_EN
B O L L I N G E R B A N D+ R S I
TRADING STRATEGY
PERFECTVIRAGE
OF
SUCCESSFUL
D E A L S
80%UP TO
THE PERFECT CURVEIS A COUNTER-TREND TRADING STRATEGY.
It is based on a combination of signals from:
Select as assets the currency pairsEURUSD, GBPUSD, USDCAD, AUDUSD, or NZDUSD.
Trading in currency pairs including the JPY and in cross rates is not recommended.
… Bollinger Bands indicator … RSI
14
STEP 1SET THE BOLLINGER BANDS
Keepthe default settingsand click on apply.
On the OLYMPTRADE platform,select the Indicators menu.
Select Bollinger Bands.
1 2
STEP 2SET THE RSI
On the OLYMPTRADE platform,select the Indicators menu.
Select RSI.
1 2 Keep
the default settingsand click on apply.
Final view of the indicators.
STEP 2SET THE RSI
TIMEFRAME
1-MINUTE
5-MINUTE
10-MINUTE
1-MINUTE
5-MINUTE
10-MINUTE
TRADING TIME
5- or 10-minute candles are recommended for analyzingand looking for signals.
Candles with a 1-minute timeframe will give signals more often,but the signal quality will be worse
STEP 3SELECT TRADING TIME
(EXPIRY)
DOWN TRADE
First signal: : the asset chart broke the top Bollinger Bands line,and the candle entered the zone with more than 30-50% of its body.
Clarification – for a stronger signal,the candle’s body must be larger than that of previous candles.
Second signal: the RSI rose above the 70 mark.
Action: If these criteria coincide, it’s a good time to open a DOWN trade.
First signal
Second signal
DOWN TRADE
The trade is opened on the “candle-in-candle” principle.
Clarification – if conditions for a signal are no longer being metwhen the next candle starts to form
(the next candle started to form inside the Bollinger Bands channel),don’t open a trade!
A new candlealso should start to formin the overbought zone
3
Wait untilthe current candleis finished forming
1
2and open a trade
in the opposite directionfor the time equal
to the candle timeframe
UP TRADE
First signal: : the asset chart broke through the bottom line of the Bollinger Bands,and the candle entered the zone with more than 30-50% of its body.
Clarification – for a stronger signal,the candle’s body must be larger than that of previous candles.
Second signal: the RSI line dropped below the 30 mark.
Action: If these criteria coincide, it’s a good time to open a UP trade.
First signal
Second signal
UP TRADE
The trade is opened on the “candle-in-candle” principle.
Clarification – if conditions for a signal are no longer being metwhen the next candle starts to form
(the next candle started to form inside the Bollinger Bands channel),don’t open a trade!
A new candlealso should start to formin the overbought zone
3Wait untilthe current candleis finished forming
1
2and open a trade
in the opposite directionfor the time equal
to the candle timeframe
STEP 4SELECT A MONEY MANAGEMENT SYSTEM
Before you start using the strategy, decide on a money management system
and the trade amounts depending on your deposit.
FIRST OPTION:TRADING A FIXED AMOUNT
If a down/up signal appears,invest no more than 2-5% of your deposit in the trade
(for starters we recommend 1%).
The trade amount does not changeand remains the selected % of the deposit.
If the trade fails,wait for the signal for the next entry point.
SECOND OPTION:USE THE LOSS COMPENSATION SYSTEM
STEP 4SELECT A MONEY MANAGEMENT SYSTEM
If the trend keeps moving in the same directionand goes deeper into the overbought/oversold zone
(the benchmark is the percentage on the RSI),loss compensation system up to 3 steps can be used.
increase RSI
step 1step 2 step 3
STEP 4SELECT A MONEY MANAGEMENT SYSTEM
SECOND OPTION:USE THE LOSS COMPENSATION SYSTEM
In the special case, if nonstandard multipliers are used,the initial x% is calculated as follows:
OPTIONPREMIUM
80-90%
70%
Special case
1ST STEP(% of deposit)
2ND STEP(% of deposit)
3RD STEP(% of deposit)
0,5%
0,5%
x%
1%
1,25%
a*x%
2,5%
3,25%
b*x%
x = , 5
1 + a + b
а – is an augmentation factor between the 1st and 2nd steps
b – is an augmentation factor between the 1st and 3rd steps
ANALYSTS’ RECOMMENDATIONS:
The greatest number of entry points in the strategyoccur in the period after trading sessions open and before they close
(after 10 am MST before 1:00 pm MSTand after 5 pm MST before 8:00 pm MST)
Avoid trading when the market starts going out of flat
Don’t trade during trading session openings
Avoid trading when important economic news is being released
START TRADING