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Forex Smart Strategy

Friday, 20 October 2017 00:00
Forex Smart Strategy

The Forex Smart strategy is an effective trading system that makes it possible to earn more than 4,000 pips a month. This system is simple, and at the same time demonstrates a high efficiency. Trading with such a system, you can use any currency pairs, but the most suitable one is EUR/USD. Don’t use timeframes with high volatility. We recommend the H4 timeframe, which is not only much quieter than the younger periods, but also demonstrates a great profit

Fundamentals of Forex Smart Strategy

Forex Smart is a tactic based on indicators. You only need several tools that are already installed in MetaTrader by default:

  1. Moving Average. Type - Linear Weighted, period - 8, shift - 0. Choose the construction at an average price. In this example, we'll select the blue color of this moving average.
  2. Moving Average. Type - Linear Weighted, period - 21, shift - 0. Apply also to average prices, and we’ll paint it yellow.
  3. Parabolic SAR (PSAR). The step is 0.0026, the maximum parameter is 0.5.
  4. Stochastic. The %K period is 12, the %D period is also 12, and deceleration parameter is 5, Close/Close. Moving Average Method - Exponential. In addition, it’s necessary to mark the menu items "fix the minimum" and "fix the maximum". Set the first value to zero, the second value to 100. If there is a level of 50, it’s better to remove it. It's also worth adding levels 40 and 60.
  5. MACD. Here we set the following parameters: Fast EMA: 8, Slow EMA: 21, MACD SMA: 1. Apply to Weighted Close (HLCC/4).

After setting all the indicators and adding them on the price chart, your terminal will look like this:


Trading Signals for Opening the Positions

n this system, the most important signal is the intersection of moving averages. It is a prerequisite for entering the market, and if you don’t see such a signal on the chart, you should abstain from trading.

Also, the direction in which the two moving averages intersect with the Parabolic SAR is important. If you see that the moving averages cross in the opposite direction to the slope of the Parabolic SAR curve, and after that, it changes its position, it means that you can open deals in the opposite direction, because the trend of the market has changed. It’s necessary to pay attention to the time passed during changing of the PSAR indications. This case should be considered if five candles have elapsed since the crossing of the moving averages, which equals 20 hours, taking into account the chosen timeframe.

Trading Signals for Closing the Positions

When you opened an order and tracked a deal for purchase, you need to monitor the indications of Stochastic. It’s necessary to wait for the moment when the level of 80 will be broken, and its curves will be directed downwards. When the level of 60 is crossed, it will signal a triumphant moment for closing the deal. If a sale order is opened, Stochastic will show a breakdown of the level of 20, then go up and cross the level of 40.

Sometimes you can see another situation, which directly indicates the need to exit the market. It should be noted that the probability of such a signal before the Stochastic curves cross the reported levels, is rather small. It’s possible that the moving averages will cross again, but in the direction opposite to the open deal. Immediately close the open position to avoid losses. Most likely, this situation means that you entered the market on a false signal, and missed the indications of one or more indicators.

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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