“Backwards” strategy

Recently I have come across with Masterforex Academy article “Why Russians are smarter and Americans are richer?” which I enjoyed and now recommend everyone to read. Here are some quotations that hit the bull’s eye: why the Americans are richer? Are they smarter than we are?
What the Americans do: they invest 10-20 thousand USA dollars in mastering of 1 or 2 methods of trading, they follow them and … earn money.

It is just a forex super strategy.
What the Russians do: they go through piles of publications about forex containing numerous mistakes or out-of-date dogmas of their authors (more detailed information you can find in chapter 5 of Masterforex-V Mistakes 4. Studying of forex market publications for 97% of traders… the way to losing a deposit) or they take up the forex course of those DCs which are interested… in trader’s failure. As a result, we reap what we sow.
The article has much in common with the idea that I wanted to render: one should not overload himself, overload exactly, with knowledge about Forex, search for a kind of forex super strategy, cause taking up one working strategy and moving step by step to the goal is quite enough. Thus, there is a necessity in simplier and understandable strategies. With pleasure, I present one of my personal Forex strategies.

forex super strategy

We set RainbowMMA indicators in the chart. We set only seven indicators of this series, from one to seven. We are looking for the moments when the indicator turned into Rainbow, unfolded into a fan. When the indicator is in Rainbow it means that trend is in process.


For descending trend RainbowMMA_07 indicator must be situated below while RainbowMMA_01 indicator must be above. For rising trend the situation must be the opposite. We look at the small correction against the trend, we make reverse motion against the trend, even entering Rainbow area. For descending trend in correction each next top must be higher than the previous one. Having such situation, we put out reserved order in proceeding of the basic trend, for example since we have descending trend at the picture, we put out the reserved order in short and shift it not in usual way but from the opposite side of pattern 1-2-3, that is backwards.

forex super strategy

Entry is marked with Aqua color, and previous location of reserved order is marked with MediumBlue color. Stop-loss location is also specified, and Take-Profit is indicated with Gold color. Frankly speaking, the situation about Take is not so simple. The take that I pointed out at the picture is three times bigger than a potential stop loss. According to forex super strategy, this very relation of stop loss and take profit should be aspired for in this strategy, however it is important to pay attention to speed/volatibility of given pair in given period. In the periods of low volatibility it is acceptable to close by proportion 1 to 1.


It is necessary and must become a rule to deal with history and find out these periods of low and also high volatibility of this or that pair. When pair confidently passes the level where we placed our reserved order, our order irrevocably moves into good profit at the start, when profit equals to stop loss amount, it is necessary to move position to break-even and try to get take that equals 3. If the pair takes off our order in slack way, stays at the level of opening the order for a long period, it is time to think of take 1 to 1, 1 to 2. It is also important to consider the size of inverted pattern 1-2-3 itself. In case it is too big, you should skip the deal. Everything must be within limits. Though, such formations are also performed by the market.


This method works with all currency pairs. The following pairs are recommended for trading as priorities: GBPUSD, EURJPY, EURUSD. The recommended timeframe is M15. You can find more detailed explanation of “Backwards” strategy in section “Questions-answers”.
Work hard with history, and you will understand more. I keep reminding: don’t break MM rules – The rules of Money Management, cause violation of these particular rules leads to the loss of deposit. My personal recommendation: never risk more than 2% of your deposit in one deal. If you break simple rules of money management, no forex super strategy will ever help you. Strategies and all the rest are minor things, cause MM is always a priority.

Remember about the article, I mentioned it cause it is really important.

What the Americans do: they invest 10-20 thousand USA dollars in mastering of 1 or 2 methods of trading, they follow them and … earn money.

 

 

 

 

   

PEOPLE ARE AWESOME

( MOTIVADE'S VERSION )

 

 

 

 

Wish you great profits! Good luck!

 

 

 

 

 

  • How to start eaming on Forex
  • How much you can earn on Forex
  • The minimum deposit on Forex
  • Money management
  • "Revenge" strategy
  • Questions - answers
  • Modifications of the “REVENGE” strategy
  • "Sicher" strategy
  • Figures of technical analysis

     

     

     

     

     

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