Multiple currency strategy Forex
This term refers to a trading system suitable for use on several currency pairs without changing the instruments used therein. A multi-currency strategy is convenient in that a trader receives more signals compared to trading only one asset. Today we will study what is included in the TS of this type and we will consider an example of such a free forex strategies that work.
What is part of the system?
Although the name includes a "multi-currency strategy," TS of this type are more often oriented only to 5-10 of the most moving currency pairs. Are a part:
Forex indicators are most often limited to standard МТ4 algorithms.
Graphical analysis tools - trend lines, horizontal levels work well in all markets and without restrictions on currency pairs.
Price Action pork patterns.
Highly specialized trading instruments, which take into account the peculiarities of movement of an individual currency, are not used in multi-currency systems.
In addition to signal frequency, multi-currency strategy is also good in that it allows to select the highest quality signals. If several opportunities are created at the same time to conclude a transaction, the trader can choose the optimal one.
Multi-currency strategy on 4 indicators
The trading system with the same name uses:
Standard oscillators - RSI indicator (3), Stochastic (6, 3, 3)
Smoothed MA (period set to 150). After adding all the necessary graphs, the picture should be the following.
The work can be carried out on all pairs of majors, as well as the most popular crosses. The working time frame is Н4 or D1.
Forex Multi-Currency Strategy assumes the following entry rules (on the example of purchases):
The graph is above SMA;
At the close of another Japanese candle, the RSI line leaves the resale zone - crosses the level 20 from the bottom-up;
Stochastic produces the same signal, at least one of the lines must go beyond the resale zone;
On oscillators conditions may not be met at the same time, Stochastic is late. Such signals can be taken into operation, but it is necessary that when a signal occurs on Stochastic, the RSI line does not yet enter the opposite zone.
Heiken Ashi is used as a filter, for shopping, and candles must be green, this indicates the growth of the market.
A stop loss is issued for the previous local maximum/minimum. There are several profit fixing options:
After changing the color of Heiken Ashi - often leads to a premature exit from the deal.
After the oscillator lines leave the resale/overbought zone, the drawback is the same. If corrected, there is a risk of closing the transaction early.
At important levels of support/resistance - with this approach, a free forex strategies that work allows you to squeeze the maximum out of deals.
Trailer-stop - its size is determined per eye taking into account the average rollback on the currency pair.
For short positions, rules change in a mirror, stop loss and teak profit are displayed according to the same scheme.
Forex 's multi-currency strategy provides more intensive trading compared to vehicles designed for a particular currency pair. An additional advantage is the possibility to choose the best signal from several received.
Of the disadvantages, we note only the inability to take into account the peculiarities of movement inherent in a particular currency pair. Otherwise, multi-currency TS has no serious shortcomings.