Trading strategy "Perfect Virage"_EN

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BOLLINGER BAND +RSI TRADING STRATEGY PERFECT VIRAGE O F S U C C E S S F U L D E A L S 80% UP TO

Transcript of Trading strategy "Perfect Virage"_EN

Page 1: Trading strategy "Perfect Virage"_EN

B O L L I N G E R B A N D+ R S I

TRADING STRATEGY

PERFECTVIRAGE

OF

SUCCESSFUL

D E A L S

80%UP TO

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THE PERFECT CURVEIS A COUNTER-TREND TRADING STRATEGY.

It is based on a combination of signals from:

Select as assets the currency pairsEURUSD, GBPUSD, USDCAD, AUDUSD, or NZDUSD.

Trading in currency pairs including the JPY and in cross rates is not recommended.

… Bollinger Bands indicator … RSI

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STEP 1SET THE BOLLINGER BANDS

Keepthe default settingsand click on apply.

On the OLYMPTRADE platform,select the Indicators menu.

Select Bollinger Bands.

1 2

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STEP 2SET THE RSI

On the OLYMPTRADE platform,select the Indicators menu.

Select RSI.

1 2 Keep

the default settingsand click on apply.

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Final view of the indicators.

STEP 2SET THE RSI

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TIMEFRAME

1-MINUTE

5-MINUTE

10-MINUTE

1-MINUTE

5-MINUTE

10-MINUTE

TRADING TIME

5- or 10-minute candles are recommended for analyzingand looking for signals.

Candles with a 1-minute timeframe will give signals more often,but the signal quality will be worse

STEP 3SELECT TRADING TIME

(EXPIRY)

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DOWN TRADE

First signal: : the asset chart broke the top Bollinger Bands line,and the candle entered the zone with more than 30-50% of its body.

Clarification – for a stronger signal,the candle’s body must be larger than that of previous candles.

Second signal: the RSI rose above the 70 mark.

Action: If these criteria coincide, it’s a good time to open a DOWN trade.

First signal

Second signal

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DOWN TRADE

The trade is opened on the “candle-in-candle” principle.

Clarification – if conditions for a signal are no longer being metwhen the next candle starts to form

(the next candle started to form inside the Bollinger Bands channel),don’t open a trade!

A new candlealso should start to formin the overbought zone

3

Wait untilthe current candleis finished forming

1

2and open a trade

in the opposite directionfor the time equal

to the candle timeframe

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UP TRADE

First signal: : the asset chart broke through the bottom line of the Bollinger Bands,and the candle entered the zone with more than 30-50% of its body.

Clarification – for a stronger signal,the candle’s body must be larger than that of previous candles.

Second signal: the RSI line dropped below the 30 mark.

Action: If these criteria coincide, it’s a good time to open a UP trade.

First signal

Second signal

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UP TRADE

The trade is opened on the “candle-in-candle” principle.

Clarification – if conditions for a signal are no longer being metwhen the next candle starts to form

(the next candle started to form inside the Bollinger Bands channel),don’t open a trade!

A new candlealso should start to formin the overbought zone

3Wait untilthe current candleis finished forming

1

2and open a trade

in the opposite directionfor the time equal

to the candle timeframe

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STEP 4SELECT A MONEY MANAGEMENT SYSTEM

Before you start using the strategy, decide on a money management system

and the trade amounts depending on your deposit.

FIRST OPTION:TRADING A FIXED AMOUNT

If a down/up signal appears,invest no more than 2-5% of your deposit in the trade

(for starters we recommend 1%).

The trade amount does not changeand remains the selected % of the deposit.

If the trade fails,wait for the signal for the next entry point.

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SECOND OPTION:USE THE LOSS COMPENSATION SYSTEM

STEP 4SELECT A MONEY MANAGEMENT SYSTEM

If the trend keeps moving in the same directionand goes deeper into the overbought/oversold zone

(the benchmark is the percentage on the RSI),loss compensation system up to 3 steps can be used.

increase RSI

step 1step 2 step 3

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STEP 4SELECT A MONEY MANAGEMENT SYSTEM

SECOND OPTION:USE THE LOSS COMPENSATION SYSTEM

In the special case, if nonstandard multipliers are used,the initial x% is calculated as follows:

OPTIONPREMIUM

80-90%

70%

Special case

1ST STEP(% of deposit)

2ND STEP(% of deposit)

3RD STEP(% of deposit)

0,5%

0,5%

x%

1%

1,25%

a*x%

2,5%

3,25%

b*x%

x = , 5

1 + a + b

а – is an augmentation factor between the 1st and 2nd steps

b – is an augmentation factor between the 1st and 3rd steps

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ANALYSTS’ RECOMMENDATIONS:

The greatest number of entry points in the strategyoccur in the period after trading sessions open and before they close

(after 10 am MST before 1:00 pm MSTand after 5 pm MST before 8:00 pm MST)

Avoid trading when the market starts going out of flat

Don’t trade during trading session openings

Avoid trading when important economic news is being released

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START TRADING