forex "Boomerang" strategy

 forex "Boomerang" strategy (Boomerang)
Currency Pair: Any, but preferably either GBPJPY GBPUSD
Time period: H4-H1
Used forex indicators: EMA (18) - Exponential Moving Average - Exponential Moving Average with a period of 18.
The volume of transactions - see "Capital management when trading Forex strategy" Boomerang ""

Forex «Boomerang» Strategy Algorithm

This forex strategy is based on a combination of traditional Forex strategies at the break with the elements of the Martingale. The purpose of "Boomerang" strategy is to identify small targets and profit receipt of the profits. Making a profit in the forex strategy is very closely connected with the management of capital (as Trade is conducted by the method of Martingale), which will be further discussed below. This trading system is unique in that, trading on it, mymozhem taking small profits in sideways markets, as well as big profits in trending markets. This system was developed more polutara years, a long time has been modified, as well as its varied components.

Settings for the "Boomerang" work strategy is very simple, very trading system may well be used by all types of traders in the FOREX. Ie .: those who like to sit all day behind the monitor, will be able to trade on it throughout the working day. But those who do not like long in front of the monitor screen, can at any time to close the bargain, and when they return to the computer in their spare time, have the opportunity to open a new trading position.

I think you will find it useful to this type of trade.

Main features of forex trading strategy "Boomerang":
- H4 - 4-hour chart (GBPUSD either GBPJPY)
- H1 - All schedule (GBPUSD either GBPJPY)
- EMA (blue color on the closing prices applied to the 4-hour chart)
- Microsoft Office Excel - table attached at the end of this strategy.

Conclusion of the transaction on forex strategy "Boomerang":

All entries into the market are based on the 4-hour chart. All price chart is designed to more closely examine the trade deals already, after they have been concluded. We also can completely replace the hourly chart, schedule any lower than the 4-hour time interval.

Rules for the opening of trading positions on the "Purchase":

- The price should be above the EMA on the 4-hour chart.
- The price should be higher than the median prices of the previous 4-hour bar in the chart.

Or

To re-enter the market - the basis for the opening of a long trading position it is the fact that the previous trade deal, which was closed by the stop was just a short trade.

Determining the size of trading positions, take-profit, safety stop-loss on forex strategy "Boomerang".

For this we need an Excel workbook (in the end of the strategy). Suppose that we have matched all the basic criteria for the opening of a trading position to buy. Current price for a 4-hour bar 1.9936.
A few comments: it is desirable that this price was the opening price, immediately after having been closed the old 4-hour bar. This price must be higher than the median prices of the previous 4-hour bar. Once you find these basic criteria, you enter the price in the table excel, where spelled out - "price of entry» - «Entry Price», then choose the bargain, which we want to open - "long» - long. Then in the windows will be the value of the book for your profit and stop-loss. Thus, you open your first trade deal at a price 1.9936 for purchase. First take profit at 1.9946 and stop-loss insurance to 1.9931. If this deal zaklyta on foot, then your new deal would be "short" - on sale, its price is 1.9931, take profit 1.9916, and the safety stop-loss 1.9936 and so on. The aim of the strategy is that by opening one of the trading positions in a series of transactions, to catch the break and enter into a profitable bargain. Pay attention to the fact that the profit target is increasing with each new otkryvatsya deal.

You can assume that 10 pips is very little profit, to seek to make it ... There is a method that allows you to increase your profits if you catch a strong trend towards open your trading positions. Once your profit on an open position has reached its goal of 10 pips, you can place a trailing stop at 5 pips, the size of the transaction is determined with your acceptable risk.
For example, if you placed a bargain at 10 lots, after the price on the chart reached the profit target 10, you close the 5 lots (or 50% of the open transaction), following the open items are distributed as follows: 2 lots - at the trailing stop 10 points, 2 lots - on a trailing stop - 15 pips, 1 lot trailing stop - 20-25 pips.

This allows you to very well protect yourself from losing trades, and, along with it, to catch a strong move, though smaller number of CMV transactions. But do not worry if you can not catch a strong trend. Your next entry into the market will already be in the next 4-hour candle. The worst scenario would be the closure of 50% of the open transaction with a profit of 5 points ....

So, to summarize (left% trading position - Right Trailing Stop size)

50% - take profit 10 points
20% - 10 points
20% - 15 points
10% - 20-25 points

You can either close the trading position due to the end of the trading day, or wait for the next trading signal to 4-hour candle.

Rules for the opening of trading positions for sale:

The price should be under the EMA in the 4-hour chart.
The price should be below the median price of the previous 4-hour bar in the chart.

Or

To re-enter the market:
If the previous deal on the purchase was closed by the foot.
Determining the size of trading positions, profit, stop loss is carried out as described above, to open "position to buy."