Relatively Simple M15 Strategy – Part 3 (Final) | Trading Highlights

STRATEGY
This Relatively Simple strategy will first utilise an 80 period simple moving average as a market filter for the overall direction of price. If price is closed above the moving average then we’re on the lookout for buy trades only, and vice versa for the sell if price is closed below the average then it’s sell trades ahoy.
Once we understand where our filter is at we can direct our attention to our main entry indicator, the relative strength index (RSI). That’s right, the RSI being used to find trends, what a backward trading world. Our levels on the RSI will be set at 60 and 40. When the RSI value closes above 60 for the first time in a move then we’ll enter a buy trade, when the RSI value closes below 40 for the first time in a move it will be a sell trade. Everything between 60 and 40, no man’s land.
Best try to manage our capital too so we’ll be using the accelerator oscillator as an exit indicator. If we’re in a buy trade and the accelerator oscillator closes under zero, that’s our sign to get out. Same in reverse when we’re in a sell trade, if the accelerator closes above zero we shut down the trade. Note that we won’t take a turn in signal from either the RSI or simple moving average as a sign to exit, it’ll be just the accelerator. Just in case there’s any problems though we’ll have a trailing stop loss on. If we’re in a buy trade that trailing stop loss will begin at the lowest low in price from the last 14 periods. When it’s a sell trade the highest high from the last 14 periods. That distance from entry price to initial trailing stop loss will be a financial risk of 2% of our capital. We shall lose no more than that.

PART 1: https://www.youtube.com/watch?v=QMGECpDMr1k
PART 2: https://www.youtube.com/watch?v=I1FYzdh7sMs
PART 3: https://www.youtube.com/watch?v=kbXKokV3tLQ

SIMPLE MOVING AVERAGE
https://www.youtube.com/watch?v=lsLlzy0SRAg
https://www.investopedia.com/terms/s/sma.asp

RELATIVE STRENGTH INDEX
https://www.youtube.com/watch?v=-PFHLoVT96U
https://www.investopedia.com/terms/r/rsi.asp

ACCELERATOR OSCILLATOR
https://www.youtube.com/watch?v=bcAljFjnIfM
https://admiralmarkets.com/education/articles/forex-indicators/accelerator-oscillator

POSITION SIZE CALCULATOR
https://www.babypips.com/tools/position-size-calculator

TWITTER
https://twitter.com/ProjectTrade365

All for entertainment purposes only.