TRX50 strategy - The rules of opening ordersMonday, 18 December 2017 08:35
The TRX50 strategy is mostly used for trading binary options, however, it is effective for trading in the foreign exchange market as well. Note that the system works during the flat market, and it is better not to use it an hour before and after the publication of important economic news.
The main benefit of the strategy is that you can monitor a chart once an hour, and it allows to trade profitably. To facilitate the trading process, you can install a specific program that will notify you every 60 minutes.
Below we will tell you about the features of the mentioned trading strategy, rules of working with it, and secrets of profit-making following the TRX50 technique.
Configuration of the strategy TRX50
The system is multifunctional, so you can use it for trading any currency pairs including low volatile ones. It's better to configure an M5 timeframe.
Description of the TRX50 system
This trading strategy demands the need of opening and closing positions at a particular time based on the Launcher TRX Final indicator. The trading time is also indicated. So, you should enter the market at the 20th minute of an hour and close at the 30th minute of the next hour. The order is valid within 40 minutes.
In fact, this strategy is based on the fact that the market actively responds to the price fluctuations at the beginning of a new hour. The point is to open a position 10 minutes before that. When working with this strategy, a trader should follow the shadow of an H1 candle, but apply it to an M5 timeframe.
The TRX50 strategy is implemented with a particular TRX indicator, which draws two moving averages on the chart. One of the lines is built according to maximums, and another – to minimums of candlesticks. The tool is very similar to Bollinger bands.
Remember that you should open an order at the 50th minute of every hour. The buy order can be open if the price line of assets is below the bottom line at a certain moment. You should hold the position up to the 5th minute of the next hour.
In the picture below, you can see a perfect time to open a SELL-order at 10:50 and closing – at 11:30.
You should buy if at the same moment (at the 50th minute of an hour) the price chart is above the upper TRX line. In the picture, you can see how it works:
In this case, «an entry door» was at 2:50 pm, and at 3:30 pm it was closed.
In addition to the standard algorithm, some traders use a Support and Resistance indicator in the TRX50 strategy as an additional technical tool. What should you do in that case?
- Analyze TRX: the candlestick should be above/below the indicator’s line;
- Examine SR: the candlestick should touch or go beyond the corresponding line;
- Next candlestick should confirm a signal – wait for two minutes;
- Open the order.
It is reasonable to open the buy order as showed in the picture.
- Do not open an order at least 30 minutes before and after the publication of the important economic news. Ideally, wait for about an hour;
- It is better to trade at the peak of market activity, because large money is in circulation, so it is more likely to get major profit;
- The perfect time for trading is an hour before the opening of London and New York sessions as well as 3-4 hours during the sessions;
- Do not forget that the TRX50 strategy is not intended to work in the trending market, so pay attention to the Flat movements. The trend trade can ruin your profit;
- It is essential that the candlestick breaks through the TRX line;
- Do not trade on a real account straight away, test out the system on a demo account;
- Do not forget about money management, stick to the risk of 2-3% from the amount of the first deposit.
The TRX50 strategy is a perfect option for everyday trading. It brings regular and steady profit, which gradually increases your profit.
Flat trading is considered to be the most dangerous as in this case. However, the price is less dynamic, and it is rather hard to get profit. The 50 minutes’ strategy deals with this task quite effectively.
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