Strategy Start on Forex - Simple Vehicle for Beginners
Strategy Start on Forex will seem familiar especially to those traders who have already managed to work on the strategy "London Explosion." These strategies combine the application of deferred warrants and the game after the opening of the London session, however, there are in this TC and its nuances, which are connected with the use of currency pairs EURUSD and AUDUSD.
As for the main idea of trade, the Start strategy is related to the results of market surveillance and the work of corporate traders and banks, which actively enter into trading after the opening of the London Trade Session - in scale it is not inferior to New York or Tokyo. The excitement at the beginning of the working day causes a large number of applications, so the active mass entry into the market of a large number of traders provokes an impulse or an active increase in volatility without any economic or political preconditions.
Tracking the history of the trades allowed to highlight a certain pattern Forex, on the basis of which the trading system Start is built, allowing to profit from this peak activity of the market. So that the TC does not cause unnecessary associations with a well-known Hollywood film, it is worth noting that there is really no connection between them, the name of the trade strategy is related to the recommended time of trade and in no other way.
How does the Start strategy work?
The fact that a large number of applications were submitted at the beginning of the first half-hour since the opening of the London session is beyond doubt, so at this time there are a large number of false movements. At the same time, it is at this point that strong intraday levels are formed. Breaking through such levels formed at a time of high liquidity will not be easy, so even the fact of trying to overcome the level, not to mention a successful break, will suggest that the price intends to go in this direction. Therefore, according to the Start on Forex strategy, after closing the first half-hour Japanese candle, it is necessary to put the delayed warrants 5 points above Hai and 5 points below Lowe candle - it will be Buy Stop and Sell Stop. As for Stop Loss, for each of the warrants its value will correspond to the price of the opposite Forex warrant, in practice it will look as follows:
The stop loss for the Buy Stop warrant will be located at the opening level of the delayed Sell Stop warrant.
Stop loss for the Sell Stop warrant will be located on the level of opening the deferred Buy Stop warrant.
A fixed Take Profit strategy does not - instead, deals simply close after 2.5 hours, because it is at this moment traders in corporations take a break for lunch, which means that trade activity is falling.
How to prepare for trade under the Start strategy?
To begin with, it is necessary to determine the time range for trading accurately, taking into account the terminal time of your broker, because an attempt to trade outside the specified time interval is doomed to fail.
Then it is worth dealing with TP and SL. Although the system does not provide for its exposure, it is psychologically more comfortable for many traders to both limit their possible losses and record profits. Therefore, some traders expose TP from the calculation of 2.5-3 magnitude SL.
With regard to closing time warrants, according to the rules of the Start on free forex strategies that work, in some cases it is useful not to hurry and significantly increase the benefits received. In particular, some traders continue to trade and remain in the market after 2.5 hours for another 30 minutes, motivated by the fact that not all corporate traders go to lunch, and therefore there are still possible market movements that will bring traders profit. Further holding deals is meaningless, as the price movement no longer falls into the Beginning Framework considered by the creator of the trade strategy and other forces begin to operate on the market. So if you want, you can experiment with the time of exit from the deal, but for beginners this option is not suitable - it is possible to change the terms of trade, but only for experienced traders who are ready to weigh all risks.
This trading strategy does not protect against loss-making transactions, but if the trader meets all the conditions of the Start on Forex strategy, the losses will be small. In most cases, the benefit gained from the deals exceeds the losses, so the final balance is in plus. This does not mean that it is necessary to enter the market with a large share of the deposit. It is much more reasonable to comply with the requirements of mani management and not to risk in one transaction more than 3% of the deposit. Let the number of loss-making deals be small, but still cannot be avoided, so it is unreasonable to risk a significant share of the deposit.
Advantages and Disadvantages of the Trading System
The following positive points can be noted for this vehicle:
Simplicity - its rules contain a minimum number of points that even beginners are able to fulfill.
Rather high profitability, however, to get the optimal profit, it is recommended to use this trading strategy on the currency pairs EUR/USD and AUD/USD - the result on other pairs is markedly worse, the used TF - M30.
The strategy of Starting on Forex requires a minimum amount of time from the player, that is, the trader will not have to sit in front of the screen for days, tracking market changes - it is enough to put up deals at the beginning of the London session and close them after 2.5-3 hours. The time spent on trading is small, so that in the remaining time it is possible to do your own business or main work. This option is optimal for those who trade as a hobby rather than a basic job.
As for the shortcomings of the Start on free forex strategies that work, it, like most trading systems, is not universal. That is, it shows good results in a volatile market, while in the case of a flash its results are less impressive. Moreover, it is not possible to significantly optimize the system, as it is not based on price movement or price levels, but on the work of the London session.