Forex Strategy of EBB-2 at one time used in conjunction with the first of its versieystrategii EBB-1 well and to diversify risks, because the drawdown of them almost the same time, however, this strategy may well be applicable, and as a standalone trading system.
The essence of the EBB-2 strategy is to ensure that we are trying to catch the pulse movement and reach almost its maximum, without waiting for in which direction the movement will continue after that. EBB-2 is well suited for traders who prefer to receive frequent small losses (an average of 15-30 points), which are covered with more than one profitable trade (on average 170-200 points).
1. The currency pair for trading - EUR / USD
2. The time interval - H1
the following indicators are used in forex trading strategies:
1. Envelopes - 288 period; exponential method; closing prices; deviation of 0.15; 1 shift.
2. Bollinger Bands - a period of 24; deviation of 2; shift 0; apply to the First Indicator`s Data.
The conditions for entry into the market to buy:
1) The price went above the upper boundary of the indicator Envelopes, and then rolls back into the same display. It is necessary to establish order buy limit at the upper line of Bollinger Bands (2-3 points higher).
2) Stop-loss is 50 points (for 4-digit broker). According to the stop-loss transactions are closed rarely as output mainly occurs on additional conditions which are discussed later.
3) After passing the 40 points in the positive zone, the deal translate vbezubytok.
4) Under the first pronounced minimum in the course of a growing movement to be transferred, at that time already a positive stop-loss.
5) Exit with profits made as soon as the bottom line Bollinger Bands completely crosses below the lower limit of Envelopes indicator (red line).
The conditions for entry into the market for sale of forex strategy EBB-2:
1) The price went below the lower boundary of the indicator Envelopes, and then rolls back into the same display. It is necessary to establish an order sell limit at the lower line of Bollinger Bands (2-3 points below).
2) Stop-loss is 50 points. According to the stop-loss transactions are closed rarely as output mainly occurs on additional conditions, which are discussed later.
3) After passing the 40 points in the positive zone, translate the transaction to breakeven.
4) During the first pronounced maximum in the course of the downward movement should be transferred, at that time already a positive stop.
5) Exit with profits made as soon as the upper line of Bollinger Bands is completely crosses above the upper limit Envelopes indicator (blue line).
Important additions EBB-2 strategies:
1) From Envelopes breakdown to give the signal to the input must be at least 2 hours.
2) If you did not come back after the break Envelopes price to the entry point for 3-4 days, then the transaction will not open the next time you approach, while conditions are not met again.
3) If, after the entry into the market price rose yet the back of the Bollinger Bands, the deal should be closed at the market price. This condition does not apply to cases where the transaction in the BU and suppression of Bollinger Bands is happening already far in the positive zone.
4) As long as there is an active transaction, other transactions can not be opened.
5) At the time of closing of the BU, re-enter the market do not, as we wait for the condition again.
On request at the closing date of the transaction can be converted into the black, but this condition does not affect the trading results.
Some statistics:
Over the past year the profit amounted to about 1440 points.
January and February 2014 have given no greater drawdown.
In March it was fully compensated.
On average, once a month, it works out a deal with a high profit on the basis of which the strategy is based.
