forex "13 hour candle" strategy requires almost no special knowledge when trading in the foreign exchange market and in fact is a "mechanical" forex strategy, but at the same time is able to consistently produce a profit, on average, per month: about 100 - 120 points (4 -x digit broker).
Personally, I was surprised how easy it can be applied in the market, especially since it does not require a lot of time for the trade and the search for signals to enter the market (or at least the idea of the trading system is quite interesting and original). It perfectly shows that the most important when trading in the forex market - it is clear algorithm and discipline in the first place!
So, the strategy of "13 hour candle" is designed for the currency pair EUR / USD, the time interval H1 (1 hour). Indicators are not required at all, all that is necessary - it is just open candlestick chart euro-dollar on the hourly interval.
C 22:00 GMT to 11:00 GMT time exactly 13 candles. We need to count the white and black candles, open a transaction, we will against the direction of movement of a large number of candles during the given period.
Terms for the deal to buy:
1) In the specified time interval should be at least 7 black candles!
2) After 11:00 GMT during 4 hours (no longer) the appearance and closing the first black candlestick (required closure of the candles) gives a signal to enter the market to buy.
3) Stop-loss is set at a minimum of the previous day. However, the minimum size - 30 points, maximum 60 points (again, for the 4-digit type Forex4you broker for 5-digit type Alpari - 10 times, and hereafter also for all values in the "points"!). That is, if the previous day to a minimum of more than 60 points, then we set the stop at a distance of 60 points.
4) Take Profit: the first half of the deal we close at the same distance as the stop-loss. If a stop-loss of 35 points, and 35 points the first goal. The rest of the deal put on a trailing stop at a distance of 30 points.
5) When you reach the first target, stop loss placed in the open transaction level (portable in-hand).
6) If you open a new day, and the transaction has not closed, they must also translate into the black.
7) The next day is done the same process, regardless of the current transaction.
The deal to buy:
1) In the specified time interval (C 22:00 GMT to 11:00 GMT) should be at least 7 white candles.
2) After 11:00 GMT during 4 hours (no longer) the appearance and closing the first white candle (required closure of the candles) gives a signal to the entrance to the market for sale!
3) Stop-loss is set at a maximum of the previous day. However, the minimum size - 30 points, maximum 60 points. That is, if the previous day to a maximum of more than 60 points, then we set the stop at a distance of 60 points.
4) Take Profit: the first half of the deal we close at the same distance as the stop-loss. If a stop-loss of 35 points, and 35 points the first goal. The rest of the deal put on a trailing stop at a distance of 30 points.
5) When you reach the first target, stop loss placed in the open transaction level (BU).
6) If you open a new day, and the transaction has not closed, they must also translate into the black.
7) The next day is done the same process, regardless of the current transaction.
Additions to Forex Strategy "13 hour candle":
1) If the previous day does not have high or low above / below this, the stop is calculated as follows: for a specified time period (C 22:00 GMT to 11:00 GMT), we measure the distance from the highest to the lowest, and divide that number by two - this will be the size of our stack. Do not forget about the size of the maximum and minimum stop.
2) Candles with equal opening and closing levels are considered as black!
Summary of the "13 hour candle" strategy:
from September 1 to December 30, 2013, this strategy has brought 553 pips on the four-digit broker.
November turned out to be a drawdown of 40 points.
