Nahuatl strategy
Any trader in the trading process can take two paths: trade with the trend, and as a result follow the crowd, or trade against the market in order to find a turning point.
Both options for this Forex strategy are quite common, each option has its own disadvantages and advantages.
For example, when working against the market, you must have nerves of iron and a huge deposit reserve.
Therefore, among traders there is an unspoken rule to always follow the trend, since this path to making a profit has the least resistance.
However, trading with the trend is not as simple as it might seem at first glance.
This is exactly the strategy you will become familiar with as you read this article.
The Nahuatl strategy is an indicator strategy that is aimed at finding and fixing large trend price movements.
Nahuatl is a time-tested forex trading strategy that has a ten-year history of use in financial markets.
A special feature of the strategy is the fact that it is not universal like most trend strategies, but rather is focused on the peculiarities of the movement of such currency pairs as Pound/Dollar, Pound/Yen.
The tactic can be used only on higher time frames, namely from one hour to four hours, since there is less market noise at these intervals.
The strategy is easy to use and can be used by almost all traders, regardless of the presence or absence of experience.
Installation
This is one of the top strategies that traders have been using in practice since 2008.
In fact, dozens of modifications were created on its basis, all of which were more or less similar to the original. Installing a strategy involves first downloading the indicator files and the template itself, which you can successfully do by moving to the very end of this article.
The next step is to place these files in the appropriate folders in the MT4 root directory.
This is very easy to do, namely, in the running platform, go to the file menu and click on the “Open data directory” option. After you get to the data directory, find the Indicators folder and drop the indicators into it, and also find the Template folder and move the strategy template itself into it.
When the installation is finished, be sure to restart your trading platform or update it, since the reset template along with indicators will simply not be displayed in the terminal.
currency pairs at your discretion and run the template on it. This is what your chart should look like after running the strategy on it:
Signals of the Nahuatl strategy
One of the most important features of using Nahuatl is that it is not necessary to simultaneously fulfill market conditions, as is the case with other indicator strategies.
In our case, it is very important that the conditions are fulfilled one after another within several candles.
The strategy itself is supported by three indicators - NonLagMA, FX Sniper's Ergodic CCI Trigger and SHI SilverTrendSig.
The key tool on which the entry point of FX Sniper's Ergodic CCI Trigger depends, while the other two indicators serve as a filter.
So, let's look directly at the rules of the strategy. Buy signal:
1. The SHI SilverTrendSig indicator warned of a possible reversal to buy with a red dot under the price.
2. The blue line of FX Sniper's Ergodic CCI Trigger crosses the red one from bottom to top.
3. NonLagMA is green, which confirms the upward trend.
The Nahuatl strategy assumes two options for setting Stop Loss.
The first, and also the main option for setting a stop, is at a local minimum. The second option of setting a stop order is allowed only if the nearest extremum is very far away. You can set it at the minimum of the previous candle. It is recommended to exit the market when you reach Take Profit , which should be no less than the Stop Loss you set.
Sell signal:
1. The SHI SilverTrendSig indicator warned of a possible sell reversal with a blue dot above the price.
2. The blue line of FX Sniper's Ergodic CCI Trigger crosses the red line from top to bottom.
3. NonLagMA is red, which confirms the downward trend.
The principles for setting Stop Loss for sales are slightly different, namely, the order should be placed at the local maximum. If this method cannot be implemented due to the large size of the stop order, set a limit order at the maximum of the previous signal candle.
Summarizing some results, we can safely call the SHI SilverTrendSig strategy highly specialized.
If we talk about the shortcomings, we can note that signals appear extremely rarely on the four-hour chart. Download scripts for the Nahuatl Strategy
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