Another Simple System Strategy
In the process of trading using any trading strategy, it is very important to correctly determine the current market trend, and only then consider opening signals in its direction.
Many traders underestimate the importance of determining the global trend, although in fact even those impulse strategies, one way or another, focus on the global price movement.
What a little detail, even if we consider it from a mathematical point of view, namely, taking the theory of probability, then the chance of making a profit by following the price is an order of magnitude higher than if you take a position against it.
This is why trend strategies are a working tool in the Forex market, despite the fact that markets change and some indicators may become obsolete.
At its core, the strategy is universal and multi-currency, but its author is inclined to believe that it is most effective on a fifteen-minute chart of the Euro/Dollar and Pound/Dollar currency pairs.
The strategy is linked to the European and American trading session, namely at the moment when the market is most volatile.
Setting up the Another Simple System strategy
In order to install the strategy, you will need to download all the necessary strategy files along with the template at the end of the article, after which you need to install the indicators and template directly into the MT4 trading platform.The installation procedure for Another Simple System is in no way different from installing any other trading strategy, namely, you will need to dump indicators and templates into the appropriate folders in the terminal data directory.
To launch the data catalog, open your trading platform and go to the file menu in the upper left corner. You should see a list of options, among which find “Open data directory” and run it.
By launching the directory, the MT4 system folders will appear on your screen, among which find the folder called Indicators and drop the indicators into it, and also find the folder called Template and drop the template into it.
In order for the platform to see changes as a result of installing files, it must be updated in the navigator panel or simply restarted.
After restarting the terminal, call up the additional menu on the chart and run a template called Another Simple System on a fifteen-minute chart.
Strategy indicators
The strategy is based on seven different indicators, but in fact, only three influence the strategy signals, which you will become familiar with in this section of the article. So, let's take a brief look at the main indicators:
1) TDI is an oscillator that is located at the very bottom of the chart in the form of two lines of green and red. TDI is a kind of symbiosis of two standard indicators, namely the relative strength index and the moving average. In strategy it performs a signaling function.
2) Moving Average is a standard trend indicator that performs two main functions in a strategy, namely a signal and also a trend-determining one. The strategy directly involves three moving averages with periods of 200, 800 and 10.
3) Heiken Ashi is a technical indicator that colors the candles red and white. In the strategy it functions as a short-term trend filter.
All other indicators are auxiliary, namely, they mark round levels on the chart, and also show the opening of the European and American trading session with vertical lines.
Another Simple System strategy signals
The most important rule when using the Another Simple System strategy is to enter the market only after the signal candle closes. So let's look at the rules strategies.
Buy signal:
1) There is an upward trend in the market, which is confirmed by the price being above the moving average with a period of 200 and 800.
2) TDI should not be in the overbought zone, namely above 68.
3) The green TDI line is crossing or has recently crossed the red TDI line from bottom to top.
4) The price crosses the moving average with a period of 10 from bottom to top.
5) Heiken Ashi in white.
When using the strategy, the author recommends using a static stop loss and profit, which are equal to 20
points Example:
Sell signal:
1) There is a downward trend in the market, which is confirmed by the price being under the moving average with a period of 200 and 800.
2) TDI should not be in the oversold zone, namely below 32.
3) The green TDI line is crossing or has recently crossed the red TDI line from top to bottom.
4) The price crosses the moving average with a period of 10 from top to bottom.
5) Heiken Ashi red.
Stop loss and the profit, as with a buy position, is 20 points. Example:
In conclusion, it is worth noting that despite the large availability of indicators, any beginner can handle the strategies, and due to the fact that you will use a fifteen-minute chart, you will have many trading signals.
Download Another Simple System tools