The Bagovino method is a strategy forex trading that is quite simple, designed for an hour-long Н1 schedule.
For this time frame, it is possible to set the EMA indicator (close), where the period will be 5 and 12. In addition, the RSI indicator with period 21. All mentioned Forex indicators are available in any standard MetaTrader 4 terminal sets.
Trading in Forex market by "Bagovino method" is carried out according to a number of principles:
As the main signal to the input in it the moment when crossing of moving averages takes place is used. Therefore, in order to simplify the operation, many traders use a EMA_Crossover indicator which, by means of a corresponding arrow, points to a point where the sliding ones intersect. When setting the indicator for each specific user, it is recommended to specify periods of sliding: Fast - 5, Slow - 21.
The RSI indicator must be set to level 50.
When crossing 5 and 21 EMAs moving up (this is about opening a long position for purchase) and when the RSI indicator crosses level 50, it is necessary to open deals for purchase, but only after the hour-long Japanese candle has been closed and the new-hour candle has been opened.
When the EMA crosses down (it is about opening a short position for sale) and lowering the RSI indicator below 50, it is necessary to open deals for sale, but only after the hour candle has closed and the new hour candle has opened. The most advantageous situation is when two intersections pass in a single step (EMA intersection and RSI indicator crosses level 50). You can select any of the currency pairs for transactions.
Stop-Loss is recommended to be set at the discretion of the trader, depending on the risk of management accepted by him, but it is better if this indicator will not exceed 0.5-2% of the depot for each of the transactions. So, if you open a trade deal on the signal of Bagovino 's method on 0.3 lot, on the first line it is possible to close 0.1 lot, and in the rest - to put in the level of no break. On the second line it is necessary to close another 0.1 lot, and the rest should be closed last.
In no case should an item be opened if the condition with the RSI indicator is not met.
The opening of the position is performed only if the candle at which the sliding crossing occurred is closed and the arrow does not appear.
Once a trader is identified with entry points, he must determine the purposes and closure of loss-making transactions. Due to the fact that the system does not provide for the use of stop loss, closing of transactions must be carried out manually at opposite crossing of sliding. At the same time, the situation often arises in such a way that when a non-working transaction is closed at the same moment a new entry point is opened. In this case, it is essential to observe the principles of mani management and to preserve the lotteries of the positions without increasing.
The system calculates the Take Profit level using the ATR Channel indicator.
For one of the items, do not use more than 5% of the amount of deposit available to the trader.
The Bagovino Method system was formed less than two years ago. And since then it has attracted many traders, as one of the most profitable in terms of profitability and one of the more reliable in terms of safety use issues. Of course, it is impossible to find or create an absolutely break-even system, but it is always worth trying to minimize possible risks.
Taking into account that absolutely break-even systems do not occur, this forex trade system can be considered among the most successful.
However, there is also a possibility that the system will not work properly. This may happen if the volatility of the currency pair in the fleet market drops so low that it does not achieve its goals. At the same time, with regard to indicators, it can be said that, despite some delay, it does not play a serious role in obtaining sufficient profit.
In any case, if there are doubts regarding the operation of the forex trade system, a test period should be determined during which it will be possible to determine whether the system is suitable for a particular trader.