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Archer Strategy – recommendations on opening orders

Friday, 5 January 2018 11:02
Archer Strategy – recommendations on opening orders

Archer Strategy is a Forex trading strategy, which provides trading signals of high accuracy.

Fundamentals of Archer Strategy

This tactic involves entering only in a trend direction. To identify the trend, both senior timeframes and indicators are used. You can combine Archer Strategy with various currency pairs. However, the pairs with US dollar (EUR/USD, GBP/USD, USD/AUD, USD/JPY) show the best result.

Any timeframe within the range of М15-Н1 is suitable for you. If the trader uses the shorter timeframes, it can cause a growing number of false signals. In this article, we will consider an hourly chart, using technical analysis on a daily chart.

The Indicators of Strategy

  • Heiken Ashi is a tool, which is installed by default in any MetaTrader terminal. The candlesticks are displayed in an alternative form, showing maximum and minimum prices.
  • Two moving averages, Exponential type, periods of 86 and 21.
  • In this strategy, it helps to determine the price movement relative to the point indicated by the number 100. If the chart is lower than this mark, it is a downward trend. It is an upward trend if the chart is higher. The period is equal to 8.
  • The parameters correspond to the values 8, 3, 3. The method is Simple.

After you make the configuration and add all the analysis tools in the terminal, the workspace of Archer Strategy will look like the one shown  in the screenshot below:

100031_стратегия_лучник_советы_по_открытию_ордеров_1

 

Trading Algorithm by Archer Strategy

First, you should check a daily period and determine the direction of the asset price movement. If it is a bullish trend, on the hourly period you can open only purchases. If it is a bullish trend, then only sales are opened.  

At the same time, you should open an order after the signal, when one candlestick is closed. Also, check if the following conditions for Buy orders are met:

  1. Heiken Ashi bullish bars;
  2. ЕМА 21 is above the second moving average (ЕМА 86). It confirms the upward trend;
  3. Momentum indications are higher than 100;
  4. Stochastic is higher than 40, and the blue line is above the red one.

To sell the asset, follow precisely the opposite rules.

Make a deal, following Archer Strategy, only in the case if each of the following conditions is met. Stop Losses are located close to a local minimum. To place Take Profits, the developers of the system recommend using the Resistance levels. The partial closing of positions is also useful. Therefore, once the chart moves enough in a required direction, the order is transferred to a breakeven state. Then, the order is trailed following the price, leaving only a period for small fluctuations.

Archer Strategy allows exiting the market prematurely. You can exit, if you see the opposite signals from technical tools, or if the trend reverses on a D1 indicator.

Notes

Do not forget following the release of the important economic news. After that, in the market, there are often powerful spikes, which are not easy to predict, and which involve big payment risks. Archer Strategy recommends following a simple rule: do not trade 30 minutes before and after the news release.  

Some traders prefer using only the H1, without revealing of the trend on a senior timeframe. Such trading is also possible. You will receive much more signals; however, do not forget that their accuracy will significantly fall. In this case, additional filter indicators can help you. 

We recommend testing Archer Strategy on a demo account, before starting real trading.

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David Melton
David Melton

Financial expert. I work with investors and different companies. I write analytical reviews for newspapers and TV channels and I also manage researching projects

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