Strategy of Spring
It 's time to consider Spring 's strategy. Its elements have been adopted by marketing makers. Marketmakers (also called puppeteers) are those who shape trends in the market by working with both parties in the deal. We will try to highlight some aspects of the work of these actors and to tell in detail about the strategy.
Basis of the forex trading strategy
The basis is the so-called Wa-Bank principle, the most famous system in which some changes have been made. The essence of the trade strategy in two words: in case the volume of the Japanese candle in a week was large and the currency pair passed a significant range of price during this time, it is assumed that on the first day of next week there will be a reverse rollback, and it can be about fifty points.
Despite the fact that this rule works quite often, there are still situations when the return is delayed or not large enough. This closes the position on the stack. Actually, this problem tries to overcome forex trading strategy Spring.
It is a little theory
The market is traded by private investors, hedge funds, and other participants. And marketing makers are also present - those who earn the difference between the best prices by closing your warrants. You will be able to issue a purchase order at a certain price at any time and this order will be executed.
However, there may not be those on the market who would be the opposite side for you, that is, at the time of opening the deal on the market there were no offers for sale at this price. In such a case, the marketer himself will act as such a side. Of course, he takes risks, because he understands that the price can come back. In case the cost does not return to the expected level, it still has the opportunity to earn if any powerful trends initiate excitement.
As an example, you can take the work of monetary exchange offices. They sell and purchase dollars, euros and other currency, exchanging them for rubles. And if suddenly there is a sharp increase in the exchange rate of the dollar or the euro, they still have a certain amount of dollars, rubles and the euro. They take risks by taking rubles from you and selling you dollars. Subsequently, there is a possibility that the ruble may rise strongly, that is, roll back, but the exchange office will still receive its earnings, playing on the difference between prices that will arise when selling and buying.
Using this trading system, you can also take risks up to the established levels. After all, you will understand that for a long period you will still get more on likely kickbacks. It is this kind of approach that is used as the basis for Spring 's forex trading strategy. As noted, this strategy is intended for experienced traders. After all, the trade will have to be conducted without stops and with the application of the averaging strategy! If you prepare a well-thought-out manmade and do not make unforeseen deals, the system will look almost break-even.
Spring weekly trading system Rules
Throughout the weekend, until the opening of the market, a week-long candle with a body volume of approximately 200 points or even more should be found. On the first day of next week, at the opening, we enter the market against the found candle. If the candle grew all week up, we sell, the candle went down - we buy.
Let's review a concrete example. Take the teak profit at fifty points. We won 't set stops. If the teak doesn 't work out, we 'll average the position. In a hundred points we repeat the entrance with the same lot. Then we open the second warrant. In such a case, the general teak profit will be moved to the beginning point of the first warrant. And we will get a hundred points of profit if the price returns to the original entry point.
At this step, the first warrant will earn minus 50 points of loss, and the second - plus 50 points of income. Teik profit is set at break-even level plus 50 points, because we want to make a profit. The purpose of our actions is not just to trade in breakevens, but also to make a profit.
Trading process automatization
To get rid of monotonous, monotonous operations, such as manual opening of market warrants, drawing of the delayed warrants, the procedure of averaging of a position, undoubtedly, the popular automated expert of Argo Averager will help. When working with him, it is enough to open the main deal and, if it is unsuccessful, further trader work will be the concern of the adviser.
You can configure the program manually or with the support of a pre-prepared .SET file, which will specify all the recommended parameters. Independently, the trader sets up the only item - the size of the lot. It is selected individually, corresponding to the amount of deposit and the selected risk for each order opened.
There is an instruction regarding price breaks, or so-called gapes. If at the time of opening the market there is a gap of more than 15 points and "looks" it towards opening the position, the deal will have to be cancelled. We will only miss the deal if at the opening the price starts going in our direction.
There is also a rule applied in the Wa-Bank system: if within 2 days there is no profit, it is necessary to transfer the teak-profit to the point of non-loss. If the situation turns out to be really difficult, a lot of knees are gained, it is necessary to transfer all open profits to break-even.
It is necessary to take into account that when trading under such a strategy the drawdown can be tangible, because it is assumed to open several warrants without stops. Hence the most important element of the organization of sales trades by the method in question - mani management! Your goal is to minimize drawdown while maintaining high profitability.
For example, the appropriate level would be: 0.01 lot on a deposit of 3,000 units, if you take a deposit of 30,000 units then the lot can be placed 0.1. With this manifold, the drawdown rate should not exceed 20 percent of the deposit volume, which is considered the norm on myforex. Profitability can reach about 100% per annum or even more.
Don 't be afraid that you should top up your account for $3 or $30. A cent account is right for you to start. It is believed that only those with elementary insufficient funds work on cent accounts. However, such accounts are used in trade through such averaging strategies. For example, if you have $100 on your standard account, it is converted to $10000 on the cent account. Hence the conclusion: for weekly trading system 0.1 lot you will need 300 dollars, and for trading 0.01 lot will suffice and 30. It turns out that if you don 't have the necessary amount in your primary account, you can simply use your cent accounts.
In conclusion, we will summarize the received information on break-even forex trading strategy Spring. The trader can choose any currency pair he likes, there are no restrictions here. You can trade without fear of missing the signal because the W1 timeframe is used.