Simple trading
systems, as we know, are not necessarily unprofitable. Today we look at Forex
Profit Boost - a simple indicator, which in itself almost an entire
trading system. This indicator is a hybrid consisting of two classical
indicators: Bollinger Bands and Moving Averages. Forex Profit Boost are
not repainted, easy to use and configure.
Characteristics
of Forex Profit Boost
- Platform: Metatrader4
- Currency pairs: Trend currency
pairs
- Trading Time: Depends on the
tactics of trade
- Timeframe: Any (recommended H4
and higher)
Settings
of Forex Profit Boost indicator
MAPeriod - period moving average
MAMethod - averaging method moving average:
- 0 - Simple averaging
- 1 - Exponential averaging
- 2 - Smoothed averaging
- 3 - Linear Weighted averaging
BBPeriod - period of indicator Bollinger
Bands
BBDeviation - the number of standard deviations
from the zero line
BBShift - shift of indicator relative
to the price graph
Application
of the Forex Profit Boost indicator
As I said,
the indicator consists of several classic indicators, Bollinger Bands and two
Moving Averages. Forex Profit Boost indicator is a trend, respectively, he
gives the best results when working in trending markets, in a quiet market will
give a lot of false alarms (ie, the required filter). The indicator shows the
availability and strength of the trend of the currency pair. For signals of all
three colors are used - the default is yellow, blue and red. As you probably
guessed, the red color indicates the presence of the bearish trend, blue is
said that in the market is currently ruled by the bulls. Yellow indicates a
weakening of the current trend, the possible change of trend, or the beginning
of a rollback to the flat area. The more of yellow color, the more likely a
change of trend.
In my view,
work with Forex Profit Boost indicator will be more effective in older periods
of four-hour graf and higher, although the authors claim that it will work
well on all periods. For less than four hours of indicator gives a lot of false
alarms, though perhaps they can be reduced competent selection of parameters
for a specific period of, and additional filtering of trades.
Forex Profit
Boost includes several classical indicators: Bollinger Bands and two Moving
Averages - one of which is configured in the settings, the second MA is a
simple moving average, plotted on the closing prices of period averaging 21.
When finding a custom moving average above MA21 indicator will painted in blue,
when the lower - in red. Thus, determines the presence and direction of the
trend. Than the moving average is closer to the borders of Bollinger, the less
of yellow color, the stronger the trend.
Signals
of the Forex Profit Boost indicator to enter a trade
The authors
offer two versions of the indicator signal extraction - aggressive and
conservative. Let's start with the first one.
First, aggressive
variant of the signal occurs when the histogram indicator changes from
red to blue and vice versa, ie when changing the direction of the trend. In
this case, when you change the bullish sentiment in the bearish (circle in the
picture at number 1). Despite the fact that on the example we entered
early in the nascent bear trend and could take a lot of trades in such pips on
an inactive market, you would have had a lot of time to get a loss before
jumped into a really good position.
Second,
a conservative variant of entry suggests waiting rollback
after the occurrence of a new trend to continue thereafter, thus slightly
increasing the probability of falling into the trend (circle in the
picture with the number 2). In other words, enter the market after the
price is has rolled back, and then has gone in the right direction (yellow
histogram bars have started to decrease in size).
And although
the rules to exit positions from the authors of the indicator I have not found,
yet also offer two different options for exit. For conservative traders will
approach exit at occurrence yellow histogram bars (item 3 in the picture). When
more aggressive trade can go out when you change the red to blue indicator
(item 4). Aggressive traders can also use a small pullback for refilling
existing trades (3 items in the picture).
Both
variants will give good results entry with the correct filters. In this case, I
mean, of course, the oscillators. Not bad for a solution to this problem MACD:
forex_profit_boost .rar
