The strategies below are based on combined indicators. Some of them are based on the well-known MT4 basic indicators, some of them are unique authoring. They are repeatedly tested in practice and show fairly good results. You should not expect a miracle from them – this is not the Grail. And do not wait for the fact that immediately after the installation of indicators and the strict implementation of recommendations, they will immediately begin to make a profit. Let me remind you that there are no indicators and strategies that would be ideal. All of them need testing, adjustment of parameters for each pair, adaptation to the current market situation.

Nevertheless, general recommendations will help indicate the direction of strategy optimization. For beginners, they will become a good simulator: the strategies are relatively simple and understandable in terms of the principles of entry and exit from the market. Each strategy has an indicator template, which you need to download from the link and install in MT4. Detailed instructions on how to do this are provided in the second half of this review (link to scalping).

1. Strategy with JMA Slope and Moving Averages

Moving Averages (MA) is a classic tool for technical analysis. They operate by the method of averaging: the value of the price for several periods is added up and the result is divided by the number of periods. For example, if the period “3” is specified in the settings and there are the following closing prices “2”, “4”, “5”, then the MA value will be (2 + 4 + 5) / 3 = 3.67. If the last candlestick closes at “6”, then the next MA will be (4 + 5 + 6) / 3 = 5. The more periods there are, the less the moving value will change sharply. This is fraught with a delay in the signal. But setting a short period is also undesirable: if a moving one with a long period (slow) practically does not respond to a local price surge, then a reaction of a moving one with a short period (fast) will be sharp. The question is the selection of optimal parameters.

The formula for averaging a simple MA is often criticized, as a result of which several adaptive versions of it have appeared. If in a simple MA in the final result each period (each candle) has equal weight, then in other versions of MA, the greatest weight is given to later periods by multiplying by a decreasing coefficient. For example: (2 * 1 + 4 * 2 + 5 * 3) / (1 + 2 + 3) = 4.17. In more complex modifications, logarithmic, parabolic and other functions can be used to calculate weight by period. Which option is best for analysis is up to you.

The JMA Slope indicator is a kind of adaptive moving average, which is also called the Kaufman moving average. I will not give the formula to which the coefficient of efficiency is added, the smoothing constant. Compared to classical variations, MA is less late, more sensitive to the market and more smoothed. The JMA Slope is displayed at the bottom of the screen and is a histogram showing the reduced MA angle. The indicator is trending; the strategy will use the classic method of entering the market at the time of a reversal.

Timeframe – Н1, pair – EUR / USD. JMA Slope settings: Length = 14, Phase = 0, Levels: 0.001 and -0.001.

Conditions for opening a long position:

  • Trade is conducted in the interval from 8.00 to 20.00 Eastern European time (the period of the most active trading in EUR / USD).
  • The indicator has drawn two or more red columns in a row below the “-0.001″ mark. Each next column must be larger than the previous one.
  • After fulfilling the previous condition, the indicator draws a column that is smaller than the previous one.
  • The body of the candle, on which a column with a smaller modulus appeared, should be more than 5 points. The candle should be growing.

On the next candle, open a deal. Stop can be set at a local minimum or retreat 15-20 points. The target profit is 10 points, after which you can either close the entire position or close only 50% by insuring the remaining 50% in the market with trailing with the mandatory transfer of the stop to the breakeven level.

Theoretically, the condition for an increase in modulus of the red columns should apply to columns below the level of -0.001. In this case, this condition is not strictly fulfilled, which can be called a weaker signal, which nevertheless turned out to be effective.

Conditions for opening a short position:

  • Trade is conducted in the interval from 8.00 to 20.00 Eastern European time.
  • The indicator has drawn two or more green columns in a row above the “0.001” mark. Each next column must be larger than the previous one.
  • After fulfilling the previous condition, the indicator draws a column that is smaller than the previous one.
  • The body of the candle, on which a column with a smaller modulus appeared, should be more than 5 points. The candle should be falling.

We open a deal in the same way.

The advantage of JMA Slope is that it is one of the few indicators that give fairly accurate signals, including at the time of news release, although the risks at this moment are increased.

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