Forex Trading Strategy with Key Number | Forex Signals Market
Monday, August 11, 2014

Forex Trading Strategy with Key Number

We choose from our database a known forex trading strategy that shows several differences in the implementation on the chart from others strategies. Will analyse this forex trading strategy because has a few characteristics completely different.

We can apply this trading system to any forex pair and to all forex market conditions.

It is a position based forex trading strategy.

Timeframe


Higher timeframe chart is recommended as each trading setup requires some calculations based on the latest bar.


At first,we have to calculate ‘key number’. It based on the current price for the quotes with 4 digits after a dot the key value is the current price multiplied by 10 and then rounded. For the quotes with 2 digits after a dot the key value is the current price divided by 10 and rounded.

Buy and Sell Orders


Place pending Buy order at Current Price + (2 x Key value).
Place pending Sell order at Current Price - (2 x Key value).

Stop Loss


Place stop-loss for pending Buy order at Open Price - (2 x Key value).
Place stop-loss for pending Sell order at Open Price + (2 x Key value).
 

Take Profit


Take-profit for both orders is calculated similarly to the key value but the current price should be multiplied by 100 for the quotes with 4 digits after a dot and shouldn't be divided for the quotes with 2 digits after a dot. In both cases the values should be rounded.
 

Trailing stop


Applied to the orders and is set to 2.5 x Key value.

Always we have to remember to cancel the untriggered order after the timeframe period ends.

Important : All investors should know that any forex trading strategy before implementing in a real account needs to be tested in a demo account in order to be fully understood.

Also, all traders should be aware that extraordinary events occurring in the forex market very often, and is likely to alter the financial results of a forex trading strategy.

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