Reverse Relatively Simple M15 Strategy - Part 2 | Trading Highlights

Описание: STRATEGY
The Reverse Relatively Simple strategy as the name suggests is the reverse of our Relatively Simple strategy, which bombed miserably. This time around we’ll be using the same indicators and entry signals as that strategy, but exactly the opposite.

So firstly for our overall market filter we’ll be using the 80 period simple moving average. When price is closed above the moving average that means that we’ll only allow ourselves to take sell signals. If price is closed below the moving average, you guessed it (assumption), it will be buy trade entries only we take.

Then for the main entry we’ll use the 14 period relative strength index. If that oscillator indicator closes for the first time with a reading of 60 or above, we’ll enter a sell trade if our market filter permits us. Of course just the opposite will come if the RSI closes across the value of 40, we’ll presume a reversal due and enter a buy trade. That’s all we’ll need to get us in.

To help us manage our money so we hopefully don’t go broke, the main indicator we’ll utilise is the accelerator oscillator. If we’ve entered into a sell trade then we’ll exit the trade when the accelerator histogram closes below 0. Vice versa for a buy trade if the accelerator indicator closes above 0 indicating a bull market we’ll close down that buy trade, suspicious of the indicators effectiveness in its traditional readings.

We’ll have a take profit set as well, so if we’re in a sell trade we’ll set that take profit level at the lowest low in price from the last 14 periods. When it’s a buy trade the take profit will then simply be the highest high in price from the last 14 periods. We’ll cross our fingers for taking profit as there will be no stop loss. Our volume will be measured out via that take profit level though regardless of sell or buy trade, it will be 2% capital reward to that take profit level. If we started with $10,000 and hit a take profit, we’d be up to $10,200. That’s all we need to kickstart this strategy and get our engines humming, so let’s hum.

PART 1:    • Reverse Relatively Simple M15 Strategy - P...  
PART 2:    • Reverse Relatively Simple M15 Strategy - P...  
PART 3:    • Reverse Relatively Simple M15 Strategy - P...  

RELATIVELY SIMPLE STRATEGY
   • Relatively Simple M15 Strategy – Full | Tr...  

SIMPLE MOVING AVERAGE
   • Simple Moving Average (SMA) Explained | Te...  
https://www.investopedia.com/terms/s/...

RELATIVE STRENGTH INDEX
   • Relative Strength Index (RSI) Explained | ...  
https://www.investopedia.com/terms/r/...

ACCELERATOR OSCILLATOR
   • Accelerator Oscillator (AC) Explained | Te...  
https://admiralmarkets.com/education/...

POSITION SIZE CALCULATOR
https://www.babypips.com/tools/positi...

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