This "FM strategy" is the strategy that I'm using right now (just a little over two weeks). I am not the one that put together this strategy, so I don't have any credits, but I will like to know if I can improve it somehow.
These are the instructions:
Timeframe: from 30 min to all.
- Tehnical Indicators:
- Price Channel
- Price Channel Stop
- Heiken Ashi candles (you can find them on any MT but they have different colors)
- Trigger Lines Alert
The strategy looks like this:
Instructions:
- Price Channel + HA candles will show the entry point.
- Price Channel Stop – use it for setting a Stop Loss and continuously adapting your SL
- Trigger Lines Alert – use it as a filter
Currencies:
Eur/usd
Gpb/usd
Usd/jpy
Usd/chf
Gpb/jpy
Eur/aud
Xau/usd (gold)
Signals:
At the beginning, I used the combination Price channel + Price Channel Stop. Similar with Brain Trading System. While searching for a sistem that will give an earlier signal I added HA candles.
Long signals – when descending red HA candles touch the channel made by Price Channel and then change color in blue.
SL set at the value indicated by Price Channel (the thin blue line from the bottom).
Short signal when ascending HA candles (blue) touch the channel made by Price Channel and then change color in red.
SL set at the value indicated by Price Channel (the thin blue line from the bottom).
The signals are more accurate if the timeframe is larger (4H or more).
For the choppy market periods, to eliminate the false signals we will use Trigger Lines Alert. When TLA changes his color from blue to red it means that, the market is rising and when the changed colors are red to blue it means that the market is slowing down.
The best way to use TLA as a filter is to take only the signals that correspond to a high value for the TLA when going short and a lower value when going long.
If the price goes in the expected direction do not forget to adapt your SL to the values indicated by Price Channel Stop (the cyan or magenta dots)
How to use:
Extract the archive and you’ll find 5 files: 4 indicators, that have the .mq4 extension and a template called FM template.tpl
Metatrader should be close.
Indicators goes in Program Files/Metatrader/experts/indicators.
Template go in Metatrader/templates
Start Metatrader and open a chart. Right click, select Template and select FM template.
The author of this strategy is Fata Morgana (
see on wikipedia what this user name means)
I am using this strategy only for trading EUR/USD on Daily timeframe.
) I definately want to give this a go and see what happens!
Linear Mode
