Greetings, friends! It’s John Foster. What do you think? What are novice-traders at forex waiting for in 2015-2016? Right! For simpli city and profitability! Another questions: do such strategies exist? Can one predict the direction of the quotation price for the coming week or month without any skills, knowledge and efforts? I won’t cunning: high-accuracy trading is possible only with more and less complex strategies, such as “Price Action”, for instance, but don’t be desperate, as there are ways for novices who are not very good at currency markets.
The strategy I’m going to describe, consists of two simplest indicators not even needed to be downloaded or installed – they are default in your MetaTrader terminal. But you must realize that as the strategy is easy, it’s impossible to gain too much with it. Nevertheless, any novice, having studied this article and the step-by-step instruction thoroughly, will be able to get 50% of the initial deposit per month. And after you’ve traded for 2-4 weeks – you will get experienced and be able to understand more complexed strategies with more profitability – up to 200% per month.
As I’ve mentioned, the strategy consists of only two indicatorsthat are default at any MetaTrader terminal. It is Stochastic indicator and SMA, most known among traders as the moving average. Initially, this trading strategy had no name and certain instruction. The latter was adjusted, and I’ve tested the strategy, but could not create any better name than “Stochastic + SMA”. However, the simple principle of trading must have a simple name, and everybody will be able to trade with this strategy, having studied the algorithm below.
We will make money with corrections and little directed movements in global trend. Daily trading is engaged. Actually, this daily forex trading strategy can be classified as medium-term one, as orders are kept open for 5-7 days, rarely longer. Average profitability of one trading order is 100 pips.
Step 1! Firstofall, activate indicators in the terminal. For that, follow: Insert – Indicators, and look for need tools in the dropping list. Moving average’s period should be set at 20, settings of the Stochastic are standard, don’t change anything.
Step 2! Wait for a buying signal. For opening an order, all these conditions are necessary:
If all these conditions are met, we enter the market when the third candle closes. If two first conditioned are complete but the Stochastic didn’t give a signal – wait for it and enter the mark, if when the indicator crosses the higher dotter line, the chart is still above the moving average. We can also enter the market if the Stochastic gave a signal for buying earlier than two first conditions have been met.
Selling entrance is similar to the buying one, but for better understanding, I will give brief explanations for this one either:
Step 3! StopLoss for the opened order must be set at the minimum of the first bar, if you enter to buy, and at the maximum of this bar, if you enter to sell. For the former case there is an image below.
Actually, 2015-2016 daily forex trading strategy “Stochastic + SMA” consists of two simplest indicators and 3 foolproof steps. Using this algorithm, you will trade with 30-40% monthly profitability. If you want to increase this value up to 50% - you’d better study the following rules deduced during testing the strategy:
I was trading with the strategy for more than a month at two currency pairs: euro-dollar and dollar-yen. I’ve entered the market 12 times, and 10 of them led to profits. My total profit was 44% of the initial deposit, which is quite good for such simple strategy. I spent half-hour a day at the average, and was frankly, idle all the rest time. I think such job will be great for most lazy people.
So, “Stochastic + SMA” is one of the most brilliant 2015-2016 daily forex trading strategies for beginners. It lets any trader make money with the minimum training – up to 50% of the deposit per month. But don’t think “minimum training” stands for “no training”. If you are not familiar with the rules of the strategy, even more – if you don’t know them by heart – you are not likely to gain at the exchange. But if you are serious about this work, the success is guaranteed. The main point – to allocate a couple of hours for studying. Average profitability of the strategy is 30-45% per month, accuracy is 8.5/10 right signals. If you are an experienced trader and want to work with more profits – I recommend to get acquainted with the “Price Action” strategy to engage trading at daily charts, or with “The Victory” strategy for scalping.
Get lucky and gain much! Best Regards, John Foster.
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