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White Tiger Strategy – Methods of Applying

Thursday, 21 December 2017 09:42
White Tiger Strategy – Methods of Applying

White Tiger Strategy is a trading method for the Forex market, which uses atypical analysis tools. It shows the best results on a H1 timeframe. You can use any currency pairs, however, preference is given to highly volatile currencies.

Fundamentals of White Tiger Strategy

We will consider a trading scheme using an example of the GBP/USD pair. In general, two options for using the strategy can be identified:

  1. Trend trading. To use it, you need two timeframes. The analysis is provided on a long timeframe, and positions are opened on a shorter timeframe.
  2. Intraday trading. Using this approach, the indicators are set on the same chart as it is used for entering a market.

Many experts consider the first type of the strategy as the most convenient since it is very profit-making and less risky.

First, open two charts with different timeframes (H1 and D1). After that, you can start configuring the indicators. White Tiger Strategy uses SFCS5 and SFCC5 indicators. These indicators should be considered in more details.

  • The SFCS5 indicator looks like a moving average, estimating the value of the asset. Its curve changes the color depending on the direction of the trend. Bullish trend corresponds to a blue color, Bearish trend – to a red color.
  • The SFCС5 indicator is located in a separate window. It helps to filter the signals received from the second indicator by the trader. Red points indicate upward movement, blue ones – downward movement. Also, it the SFCC5 indicator shows vertical lines, which show a fluctuation range.

All of these Forex tools can be simply installed in the MetaTrader terminal. As a rule, you can add them according to a standard scheme.

When you have carried out all settings, your terminal will look, as it shown in the figure:


Trading algorithm by White Tiger Strategy

First of all, you need to find a trend on a daily timeframe. All transactions are opened only towards this trend. After that, switch to a H1 timeframe and wait for signals to enter the market. Accordingly, if the senior period shows a bullish trend, on the hourly timeframe open a Buy order, and vice versa. Also, when you open a Buy order, make sure that the following requirements of the strategy are met:

  • Upward movement on a D1 timeframe;
  • The SFCS5 indicator is colored in blue, and closing of the price is above the line;
  • The SFCС5 indicator has the same color.

Stop Loss is set at a local minimum, but not less than 30-40 pips from the position. In white Tiger Strategy, you can close the order using two algorithms:

  1. Activation of a Take Profit. It should be twice as much as a Stop Loss.
  2. When receiving opposite indications of the indicators.

A Sell order is set on the opposite principle:

  • Downward movement on a D1 timeframe;
  • The SFCS5 indicator is colored in red, and closing of the price is below the line;
  • The SFCС5 indicator has the same color.

The Second Method of Trading

This method of applying the strategy requires more active entry into the market, without preliminary analysis of the senior timeframe. In this case, a trader is guided only by indicators. Every time when indications of the tools change its color, a new position opens, corresponding to the direction of a new trend. As soon as the value of the asset changes its direction, close the position and open a new one, in the opposite direction. This method of applying White Tiger is very simple and suitable even for novices.

Test Results of Strategy

After testing White Tiger with the GBP/USD pair during 6 months, we can conclude that it the strategy is highly profitable. A trend trading approach was used.

In sum, we managed to make 234% of profit during this time. At the same time, the drawdown made up 94%. According to these results, it is evident that the strategy requires an aggressive trading.  

Advantages and Disadvantages of the Strategy

Among the advantages of White Tiger Strategy is simplicity. Any novice participant of the currency exchange can quickly master it and apply it in practice.

However, false signals are likely to receive, as in any other trading technique. To avoid risks, we can apply additional filter indicators. Oscillators are the best suitable for this role.

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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