Well met again friend.
I think you’re ready to up the stakes, but for this, you’ll need a good strategy.
The best strategies are often the most simple: buy low, and sell high, but things are not always so easy. People from all around the world have been trying to solve this problem with very sophisticated methods and yet they still incur losses. Our strategy is tailored for you, works and is a much safer way to make money.
1) Moving and spinning.
This is a type of TREND Strategy. This strategy uses one of the most basic views. Trends are our friend so we’re going to take a look at them.
We need two moving average with periods:
SMA “period” 8 (green)
SMA “period” 24 (yellow)
The time frames are from 10s to 1 m.
The Instrument or currency (EURUSD, Crypto Index or choose your favorite)
First. We need to draw two Moving Average indicators.
1) Click on the pencil and go to the indicators tab.
2) Click on “Moving Average” and for the first period, set the bracket to 8.
3) Do it once again and put the value at 24 for the second period and colour.
After that you’ll have a graphic showing the price with two moving averages.
Now let’s establish our buy signal.
When the green line (8th period SMA) crosses the yellow line (24th period SMA) from down to up, it’s the signal that a new UP trend has come. This is the time to BUY. (green arrows)
Notice: The price is fluctuating so you need to BUY after the signal indicates that the period is ended.
Third SELL signal (As shown by the red arrow) is an opposite situation when the green line (8th period SMA) is under the yellow (24th period SMA).
Notice: the price is fluctuating so you need to BUY after the signal indicates that the period is ended.
As you can see, this is a very useful strategy to make money. Now the last thing to do is to choose an expiration time.
Time frame and Expiration
The graphic will change depending on the time frame you choose but our strategy has a rule that will make it work no matter what.
The rule: Double your time frame. This means that if your timeframe is 30s your expiration should be 1 minute.
Let’s look at the price chart.
The green oval represents the BUY time on the 30s second time frame. The time of expiration is 1 minute.
The red oval represents the SELL time on the 30s second time frame. The time of expiration is 1 minute.
When to use? Use this strategy in the markets where the price usually has a distinguishable trend, and if the price goes sideways, then it’ll not be so effective.
This strategy has too many advantages to count. Here are some of them:
The only thing that will make this strategy complicated is that you will have to wait for the signal for a long period of time to be certain the signal is good.
2) The Second Strategy will expand your repertory of strategies because it’s not like the trend strategy. In this one, you’ll find yourself going against the trends.
The Idea of this strategy is good - BUY when it’s cheap and SELL when it’s expensive.
For this reason, we’ll trade some volatility because it shows how the price can explode in both directions. When the explosion is very intensive, we’ll make our trades against the trend.
Let’s watch how to do it.
We need an indicator: bollinger lines with the period at 14 and the rejection that equals 2:
Time frames from 10s to 1 m.
Instrument (EUR/USD, Cryptoindex or choose your favorite)
These parameters show how the price changed and what the deviation was within the 14 periods.
First. We need to draw Bollinger lines indicators.
1) click on the pencil and go to indicators
2) click “Bollinger lines” and write 14 in the “period” bracket and 2 in the “rejection” bracket.
After that you’ll have a price graphic with Bollinger lines.
The middle line is the SMA of the 14 price periods, the upper line represents the +2 standard deviation of the 14 periods and the lower line is the -2 standard deviation.
Second. Let’s establish our buy signal.
When the price is approaching below the lower line, that’s a signal to BUY.
Notice: The price fluctuates so you need to BUY after the signal that the period has closed.
Third SELL signal (red arrows) is an opposite situation when a price closes above the upper line.
Notice: The price fluctuates so you need to SELL after the signal that the period has closed.
Time frame and Expiration
Different time frames will yield different results, but we have a rule that will make the strategy work better.
The rule: Double your time frame. This means if your timeframe is 30s your expiration should be 1 minute.
Let’s look at the price chart.
The red ovals represent the trade time on a 30s second time frame. The time of expiration is 1 minute.
Usage. Use this strategy in markets where the price is usually a sideways trend or a trend corridor. It will be very effective if there are no big price fluctuations. This strategy has many advantages. Here are some of them:
The only thing that makes this strategy complicated is that you have many signals so you need to trade continually and pay attention to the market over a long period of time.
3) Three moving averages
Trend trading with some filters. This strategy has awesome results because it filters the direction of the trading.
We need three moving averages with periods:
Time frames from 10s to 1 m.
Instrument (EUR/USD, Cryptoindex or choose your favorite)
First. We need to draw two Moving Average indicators.
1) click on the pencil and go to indicators
2) click “Moving Average” and type 8 in the first “period” bracket.
3) do it once again to set the 24 period one and its colour.
4) do it once again to set the 54 period one and its colour.
Second. Let’s establish our buy signal.
As you can see in the first strategy, the concept of the signal is the same, but for the more advanced strategy we’ll filter the direction of the signal with the third long SMA line (54).
BUY - only when the blue (54 period SMA) line is below the two other MA (moving averages). (Filtering function of the system)
and at the same time the green line (8th period SMA) is above the yellow (24 period SMA).
Notice: The prices fluctuate so you need to BUY after the signal that the period has closed.
Third SELL signal only when the blue (54 period SMA) line is above the two other MA (moving averages). (Filtering function of the system) At the same time the green line (8th period SMA) must be below the yellow (24 period SMA).
Notice: the prices fluctuate so you need to SELL after the signal that the period has closed.
As you can see, the filter strategy makes the situation less unpredictable. We know that we should not SELL while the filter does not show the proper selling conditions. This makes our trades more targeted towards a main trend.
Time frame and Expiration
Different time frames will yield different results, but we have a rule that will make the strategy work better.
The rule: Double your time frame. That means if your timeframe is 30s your expiration will be 1 minute.
Let’s look at the price chart.
The green oval represents the time of trade on a 30s second time frame. The time of expiration is 1 minute.
This strategy has a lot of advantages. here are some of them:
The only thing that will make this strategy complicated is that you will have to wait for the signal for a long period of time to be certain the signal is good.
As you can see we already filtered the wrong signal marked by an arrow in the red crossed circle.
Usage. Use this strategy in markets where the price has a trend or an observable trend corridor. It will not be effective if there is no observable trend.