Trading Strategies by CopyFOREX

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Strategy "Scalping with use of Parabolic SAR + CCI"​

Recommended timeframes M1​

This strategy is based on Parabolic SAR and Commodities Channel Index indicators. That's an impulse scalping strategy founded on the current price trend.
Tools: EUR/USD, AUD/USD, GBP/USD.

Тimeframes: M1, M5.

Indicators:

1. EMA50 on M1 time-frame
2. EMA21 on M5 time-frame
3. CCI (45).
4. Parabolic SAR (0.02, 0.2)

Long positions should be opened when the point of the Parabolic SAR indicator is located above the EMA's line and the value of the CCI indicator is more than 100.

Short positions should be opened when the point of the Parabolic SAR indicator is located below the EMA's line and the value of the CCI indicator is less than 100.

Exit point:

Target: EUR/USD (7-12 points), AUD/USD (5-8 points), GBP/USD (7-15 points).

Stop Loss level should be placed at the EMA level.

Buy


Sell

 

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Scalping system “10 points”​

Recommended timeframes M1​

This trading strategy is used on the chart with the period M1. We add MACD Oscillator with the settings (13, 26 and 9) and Stochastic Oscillator the settings (5, 3 and 3), which will be used as indicators. The best time periods for trading with the use of this strategy is European and American sessions. It is preferable to choose currency pairs with the medium or high volatility (currency pair of the Major group are quite suitable).

After adjusting the chart and adding required indicators, follow the instructions below to open trading positions:

The following conditions can be used as a signal for opening long positions:

- the lines of MACD histogram are in the positive zone above the zero level;

- after the decline below the level 20, Stochastic Oscillator (the line %К or %D) has risen above this level.

Stop loss is set at the distance of one point below the nearest local low.

Take profit is set at the level of 10 points from the opening price.


Fig. 1

A candlestick, which is marked on the chart with the period M1 meets the requirements for opening long positions (Fig1).

The following conditions can be used as a signal for opening short positions:

- the lines of MACD histogram are in the negative zone below the zero level;

- after the rise above the level 80 in the overbought zone, Stochastic Oscillator (the line %К or %D) fell below this level.

Stop loss is set at the distance of one point above the nearest local high.

Take profit is set at the level of 10 points from the opening price.


Fig. 2

A candlestick, which is marked on the chart with the period M1 meets the requirements for opening short positions (Fig2).

 

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Strategy with the use of Bollinger Bands indicator for the currency pair GBP/JPY​

Recommended timeframes M1​

This strategy is based on the use of the technical indicator Bollinger bands with different periods of deviation in the settings on the chart with the period M1 for the currency pair GBP/JPY. The best trading time period with the use of this strategy is London, European or American session. Choose deviation of 2, 3 and 4 for each band in the settings of the indicator.

As soon as the chart is set for the trading position, we will follow the following instructions:

The conditions described below and shown on Fig.1 will act as a signal to open long positions (Fig 1):

- The price has reached the bottom line of the indicator with the deviation 2 (red line of the indicator on the fig.), or the price is traded between the lines of the indicator with the deviation of 2 and 3 (red and blue lines on the fig.)

Stop Loss is set 2 points below the nearest low of price or upon your own discretion.

Take Profit is set 15 points above the opening price or upon your own discretion.



Fig.1 On the chart with the period M1 marked signals for opening long positions satisfy the conditions of the trading strategy

The conditions described below and shown on Fig.2 will act as a signal to open short positions (Fig 2):

- The price has reached the upper line of the indicator with the deviation 2 (red line of the indicator on the fig.), or the price is traded between the upper lines of the indicator with the deviation of 2 and 3 (red and blue lines on the fig.)

Stop Loss is set 2 points above the nearest high of price or upon your own discretion.

Take Profit is set 15 points below the opening price or upon your own discretion.


Fig. 2 On the chart with the period M1 marked signals for opening short positions satisfy the conditions of the trading strategy

 

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Strategy based on News
Recommended timeframes M1​

This article will describe a simple but effective strategy based on the most important macro-economic news. For this strategy we will use pending orders Buy Stop and Sell Stop, where Stop Loss will be placed at the short distance from the opening price level, while Take Profit - at the long distance from the opening price; or orders can be closed manually.

The key factor of placing an order is the choice of the news, which will cause the strongest momentum in the market. The most important news are subdivided into the following information groups

• Non-farmPayrolls
• Industrial Production
• PPI
• GDP
• CPI
• Unemployment
• Consumer Confidence
• Money Supply
• Harmonized Index Customer Price (UK and Europe)
• Trade Balance
• Retail Sales
• Current Account
• Tankan
• ISM (USA), PMI (Eurozone), CIPS (UK)
• Michigan Sentiment Index
• Beige Book
• Chicago PMI Index

For this strategy we can choose those major pairs, for which the news will have the strongest impact, triggering the highest movement in one of these pairs: EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD and NZDUSD.

We shall compare the time in the news calendar with the time of the trade terms.

Next steps to follow: use timeframe M1 or M5.

2-3 minutes prior to the moment of issuing the news, place pending orders Buy Stop and Sell Stop at the distance of the previous high and low of the price for the last 10-15 minutes; however they should not be closer than 8 points from the current level of price. In order to minimize losses it is recommended to Stop Loss at the level of 3-4 spreads from the current price of the currency pair. It is also advisable to place Take Profit either at the level of 80-90 points or do not place it at all, but just follow the price movement.

The order will be activated at the moment of issuing the news; if the price does not reach Stop Loss, moving in the favorable direction, we shall move stop-loss in the direction of the leap.

 

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Scalping strategy with EMA​

Recommended timeframes M1​

Instruments: major Forex instruments with low spread such as EUR/USD, GBP/USD, AUD/USD, USD/CAD. The number of instruments could vary and should be chosen depending on the spread offered by your broker.

Timeframes: M1, M5.

There are three groups of indicators that are used in the strategy:

• EMA with periods 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 (pink colour);
• EMA with periods 17, 19, 21, 23, 25, 27, 29, 31, 33, 35, 37, 39, 41 (blue colour);
• EMA with periods 44, 47, 50, 53, 56, 59, 62, 65, 68, 71, 74 (green colour).

When to open long positions:

Buy when the pink EMA crosses over the green EMA from the top. Add to the long position when the price touches the green or blue line and returns to the pink line.



When to open short positions:

Sell when the pink EMA crosses over the green EMA from the bottom. Add to the short position when the price touches the green or blue line and returns to the pink line.


When to take profit:

On the M1 chart, take-profit is placed 5-7 points away from the entry level when opening an initial position, and 4 points away when adding to the position. Stop loss is placed 12 points away from the entry level.

On the M5 chart, take-profit is placed 12-20 points away from the entry level when opening the initial position, and 7 points away when adding to the position. Stop loss is placed 18 points away from the entry level.

 

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Strategy with the use of Oscillators CCI and MACD
Recommended timeframes M5​

This simple strategy is based on rather strong signals of entry and exit points from the market. Two oscillators: CCI and MACD in one window are used in this strategy. The best results are achieved with the use of timeframes from M1 to H1.

Settings of the indicators:

MACD: Fast EMA - 12, slow EMA - 26, MACD SMA – 2, applied to the closing price.

CCI: Period – 14, applied to the closing price.

Do not forget that that we use two indicators in the same window; therefore, after setting of the first indicator, the second indicator shall be moved, with the help of the mouse, from the window “Navigator” to the window with the first indicator.

Let’s consider an example of opening a BUY position (Pic. 1)

In order to open a buy position, the red line CCI should cross the line +100 from bottom to top, while the indicator MACD shall be above the demarcation line 0. In order to close positions, the line CCI shall go back to the level +100. However, the as practice shows it is better to close positions if the line CCI crosses MACD.


Pic. 1

How to open a SELL position (Pic. 2)
Open a sell position when the CCI red line crosses up the line-100 and the MACD indicator is below the demarcation line 0. Close the position when the CCI line returns to the level -100 or crosses the MACD line.


Pic. 2

For carrying out a transaction you shall watch over terminal tracing the readings of the indicators, since this option does not provide for a function of placing stop-loss or profit taking orders.

 

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Strategy “3 candlesticks High-Low”
Recommended timeframes M5​

Instruments: EUR/USD, AUD/USD and GBP/USD

Timeframe: M5

Conditions for entering the market:

There should be three in a row either “bullish” or “bearish” candlesticks on the chart.

Stop loss:

Either High or Low level of the second candlestick

Take profit:

6 points for the pair EUR/USD;, 8 points for the pair AUD/USD; 10 points for the pair GBP/USD.