Forex manual trading for the first 3 strategies

Forex manual trading for the first 3 strategies


Hello, dear traders, this is Petko Aleksandrov and while I am waiting for the Expert Advisors to show some results, to have
some statistics, I will record 3 lectures where I will show how exactly
these 10 strategies could be traded. What are the parameters inside and what are the entry and the exit rules? This way if you want to trade them manually you will
know how to do it and if you are not a fan of manual trading and you want to
use only the Expert Advisors you can basically skip these 3 lectures and
continue with the results from the Expert Advisors. But if you just want to
know how the trades are opened, where exactly the trades are opened, what rules
are behind these Expert Advisors, you can go ahead with these 3 videos. OK?
Now, I will use the Expert Advisor Studio because we have a very nice indicator
chart and we can see exactly where the trades were opened and closed. And on the
home page you can see that there is a video of mine and below the useful links.
There is a new series of videos that are recorded recently and I just uploaded them
today. And they are free and you can have a look at them if you want to learn how
Expert Advisor Studio works. It’s actually a complete startup course and I
show all the instruments, I go through them and I show some examples trading as
well. So if you are interested to learn more about the Expert Advisor Studio
you can watch these free videos. Now, I will go to strategy and I will import
back the first Expert Advisor. This is the one ending in 559. I will
click on open and you can see what I have. I have 1 entry rule the RVI
signal and we have the RVI line crosses the signal line downward. OK? This is
the rule to buy for the long entry. And to exit the long trade or to exit
the buy positions, we have volumes. Volume crosses the level line upward, this is
the exit condition. OK? So for the RVI we have period of 46 and
for volumes we have level of 11,912. So
these are the parameters for the initial Expert Advisors. Now, of course, with
time I will be updating these strategies. OK? Because the market changes, I will
do some optimization, I will do some analysis according to the recent market
conditions and I will change these parameters. Whenever I do a change I will
let you know. And basically I will replace these strategies with the
new ones, with the new parameters. And one of the ways to see the new parameters is
if you open the strategy in the Meta Editor. You can see at the beginning of
each strategy we have exactly the Stop Loss, the Take Profit, we have as
well the indicator parameters. So you can see here is for the RVI signal, 48 the
volumes, so you can see the new parameters inside the code of the
strategies. Alright? So let’s see the indicator chart of the first strategy,
how it looks. We have the RVI in line crosses the signal line downward. This is
our entry rule and we have volumes as an exit rule. OK? I click on the strategy
and you see here with the Expert Advisor Studio we have a very nice indicator
chart. We see exactly where the trades were opened and closed. And right here we
have a long trade because the RVI crosses the signal line downwards. And on
the opening of the next bar, the trade is opened. OK? So when we have the event
happening, in this case the event is the RVI line crossing the signal line
downwards, on the opening of the next one the trade is opened.
And with the Expert Advisors, the Take Profit and the Stop Loss are placed
immediately, but if you do that manually you need to place the indicators, you
need to wait to see the cross. And on the opening of the next bar you need to be
ready to open the trade. After that you need to place the Take Profit and the
Stop Loss. In this case, the Take Profit is 788 pips and Take Profit of 664 pips
which is $7.88 and $6.64. Alright? Let
me go back to the chart. So once you are into the trade, place your Take Profit,
place your Stop Loss and keep watching the exit rule as well. Because if it
reaches above 11,912 you need to close the
position. In this case, you can see that the Take Profit was hit. OK? So it
doesn’t really matter which platform you will be using. For manual trading you can
use any platform, there are many web-based platforms.
I personally prefer Meta Trader because it is possible to trade with the Expert
Advisors but for manual trading you can really use any platform. OK? So you can
see here are consecutive profitable trades, here is a buy after the RVI line
crosses the signal line downwards. Another buy over here and then another
one over here. Let’s have a look at some short trade. OK? This one over here. You
can see it happened after the RVI crossed the signal line upwards. OK? The opposite
direction but in this case the trade was closed because of the Stop Loss. Alright?
So this is how the first strategy works, 2 indicators, Stop Loss and Take Profit.
You can see it has a very nice balance chart so far. OK? I will remove this
strategy from the collection and I will upload the next one. It will be the one
with magic number ending in 184. I click on open, what we have here is
the directional indicators and envelopes as an exit condition. We have Stop Loss
of 832 and 945. Directional indicators, we have the DI+ line crosses the DI- line downwards with period of 44. OK? And with the envelopes,
I have the bar opens above lower band after opening below it. OK?
So it means that we will exit the long trade once the price was below the
envelopes and when it gets into the envelopes we are out. Period of 20, deviation, 0.36. Alright? So these are the 2 indicators with the strategy. What you
need to place on the chart if you want to trade it manually is the directional
indicators which display below the chart. And the envelopes, it is over the price
chart. Alright? So we have the DI+ crosses the DI- downwards. You
can see the green line, the positive one crosses the red line downwards. So we
need to buy on the opening of the next bar, the trade is opened. And you can see
in this case it goes to the Take Profit. OK? So once you see the cross of the
2 lines you need to open your trade, you need to place your Take Profit and
your Stop Loss and you need to look for exit from the exit rule which is the
envelopes. Let’s have a look at some example where the trade was closed due
to the envelopes. I will go back and look for such an example. So the entry here is
very clear when the 2 lines cross. Now, in this example we have the opposite
case. We have a short trade because the positive line crosses the negative line
upwards. OK? So we are selling. Let’s see what happens
with this trade, it closes over here and it closes because of the envelope. OK? We
set for a long trade. We want to see that the bar opens above the lower band after
opening below it. So for the short trade it will be the opposite thing. The bar
will open below upper band after opening above it. Alright? So we want to see the
price going above the band and when it gets into the envelopes between the 2
bands, it closes straight on the first bar open. OK? This is why we say that we
will exit the short trade when the bar opens below upper band after opening
above it. This bar opens above on the opening of the next one, we are out. OK?
this is how the envelopes work in this strategy. I will click on the editor one
more time so you can view the strategy. One entry rule, period of 44, one
exit rule, period of 20, deviation 0.36. OK? We have the Stop Loss and the Take
Profit. I will remove this strategy and I will import back the third Expert
Advisor ending in 637. I click on open and you will see that here
we have 2 indicators as an entry rule and we have 1 exit. The first one is
the CCI and it says CCI crosses the level line downwards, period of 23 and it
applies to typical method. And let’s have a look at the Average True Range, we want
the ATR to be falling. OK? Period of 21, level of 0.01. And the
envelopes is our exit indicator. Again, the bar opens below upper band after
opening above it. So this case, it is different. The bar opens below upper band
after opening above it. This is for the long trade now,
we need to see that the price gets into the bands in order to exit the long
trade. And here we have period of 27, deviation of 0.39. Alright? Let me have
a look at the indicator chart, we said that we want to have the CCI crossing
the level line downwards in order to buy and it will be upwards in order to sell.
OK? You can see here the CCI crosses the level line upwards. Let’s have a look
one more time at the level, yes it is the 0 line. You can see that it is
displayed over here so when it crosses upwards we sell and when it crosses
downwards we buy. So you can see here is a cell and here is a buy. And as a
confirmation, we have Average True Range falls. This is for the long trades and
for the short trades it should be rising. So at this moment over here it is rising
at opening of this bar, I’m not sure if you can see it but here there is a small
move down then it’s going a little bit up and then goes down again. And many
traders actually make the mistake to look over the chart over trading
platforms to analyze strategies with indicators. But the thing is that they
repaint and they are very misleading when you look at them back in time.
Sometimes it is very clear where the entry is but sometimes the indicator at
this moment was not exactly what we see it right now. OK? So here we have a long
trade, you can see that we have the cross of the CCI of the level line is going
down, it’s crossing downwards the line. This is why on the opening of the next
one, we have the long trade. So right here was the cross on the opening of the next
bar. The trade is executed and at the same time we need to have the Average
True Range falls. OK? It’s falling at this moment right over here. And what happened
with this trade, it hit the Take Profit and you can see where is the
Stop Loss. So this line, the red line shows where the Stop Loss is. And this one
over here shows where the Take Profit is. And you can see there is a small arrow
where the trade was open. It is green if it was a buy position and if it was a
sell position it is red. OK? So these are the first 3 strategies that I
selected and that I placed for algorithmic trading but I want to show
how these strategies actually work. And if someone is interested in manual
trading, they can use them as well in manual trading. And as I’ve said, I will
update these strategies whenever it is needed according to the recent market
conditions. I will do some optimization, I will analyze them according to the new
data that comes, the new bars, the new historical data. So what I’m going to do
in these 3 lectures where I show the manual trading of the strategies, I will
attach PDF files as resources and I will describe the strategies there with the
parameters and exactly the rules that are followed. So if you want to trade
these strategies manually it will be easier for you. And the other thing is
that when I update these strategies, I will update these resource files and I
will put there the new parameters. So if any other parameters is changed,
I will underline it. OK? So for example if I change the CCI to 25 but no longer
23, I will just underline the 25 so you know this is a new value and you can start
using the new value. And as well, I will update the Expert Advisors with the new
parameters. So I will upload the new Expert Advisors with the new parameters.
And the other way that I told you to see the new parameters is from the code of
the Expert Advisor but I believe with the resources files that you will find
attached to this lecture and the next 2 lectures, it will be much easier
for you. Alright? Thanks for watching and I will see you straightaway in the next
lecture. Cheers.

Danny Hutson

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