The Puria Method StrategyTuesday, 9 January 2018 09:00
The Forex strategy “The Puria Method” is a multicurrency trading method, which is based on the indications of three moving averages and the MACD indicator. Most frequently, this strategy is classified as scalping since trading is carried out on half-hourly and hourly timeframes.
Key Characteristics of the Puria Strategy
The system applies to trading any currency pairs, and each asset has its timeframe - M30 or H1.
Since Puria Strategy suggests a modest profit, the author recommended trading a few assets at once and, for convenience, developed a special table. Below you can find all the necessary information – which pairs and on which timeframe you should work, and which Take Profit should be placed.
A tip for novices: when testing Puria Strategy, choose five currency pairs and work with them for at least a week. After that, start real trading.
The Indicators of the Strategy
Set four indicators: 3 Moving Average and MACD.
- For the first moving average set a period of 85. Highlight it in red to make it easier to see on the chart, and apply to the price minimums (low);
- For the second simple moving average choose a period of 75, in red color. Apply the robot by analogy with the previous one;
- The third line, an exponential MA, should be with a period of 5. Choose the yellow color. Apply the MA5 to the closing prices;
- When setting the last tool, configure a quick EMA for a period of 15, a slow EMA – for a period of 26, MACD SMA – for a period of 1. Apply it to the closing prices too.
All of these robots are standard for the Metatrader4 and Metatrader5 platforms, so you do not need to download anything additionally. It is another advantage of Puria Strategy.
For convenience, we recommend saving the template with all indicators and their settings. It allows to quickly upload a required combination of technical tools every time whenever switching to another currency pair.
Trade Rules by “The Puria Method” Strategy
First, open the chart of the preferred currency pair and apply technical analysis tools.
Sell the asset when the yellow Moving Average has crossed two red lines from up to down. At the same time, one MACD bar should be closed below a zero level. The ideal time for sales is one shown in the screenshot below:
The signal for buying an asset will be a mirror crossing of the yellow Moving Average by other lines, as well as the formation of the histogram’s column above a zero level.
Most often, you can exit the market through a Take Profit order, following this strategy. As an alternative, you can close a deal if the lines are crossed again in the opposite direction, or the MACD histogram forms the columns from another side of a control level.
Recommendations for using “The Puria Method” Strategy
In order not to get confused in the charts, choose at first not more than five currency pairs. Also, keep in mind that “The Puria Method” Strategy is not intended to work with pairs and a large spread. Make sure the price difference of purchase/sales is not more than two pips.
We do not recommend changing the initial settings of the chart and indicators. It can affect the quality of trading signals, which will yield losses to the trader.
Since Puria Strategy is intended for novices, it is worth clarifying that a half an hour before and after the release of the important economic news you don’t have to trade. Such events are fraught with sharp price spikes, especially if you trade on small timeframes. The importance of the news is also important. If you understand that the quotation of the traded currency can fall, refrain from making deals during an hour.
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