FREE FOREX SYSTEMS – FOREX POWER PRO

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Forex

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Introduction

Albert Einstein

My favorite quote comes from the eminent theoretical physicist. Trading is another area in which this technology may be used. Trading may be pretty easy, but sometimes we add a second dimension by using an additional indicator or set of rules in an attempt to filter trade signals.

But the simplicity of it has its limitations. One such system is this one.

There are just two sets of indications. The average generates the best trade chances by filtering out the other indicators.

at the same time, it certainly not difficult.

I’ve been trading since 2000, therefore I have a lot of experience. I have spoken to several skilled traders, seen numerous trading strategies, and witnessed numerous happy outcomes and regrettable failures. I’ve gained a lot of knowledge and have been able to put it to use.

I created this trading strategy a while back, and a few expert traders have utilized it with outstanding success.

Why was it not made available for general usage earlier? The reality is that this approach contains a component of straightforward efficiency that the typical day trader appears to despise. They believe that if anything succeeds, it must be difficult. This transaction

I want you to be a successful trader and to gain money from trading. I’d rather give away such a powerful trading method than sell it because of this. I encourage you to use this strategy in your day-to-day trading to maximize your profits.

I won’t go into the specifics of Forex trading since I’m going to presume that you already have the necessary trading knowledge to use this strategy. The indicators are widely used and may be found on all charting platforms.

I run my charting software on the MetaTrader4 platform. Nearly everything offers them for free. You may get a free copy of these incredible charts by going to the following website:

http://www.metatrader4.com

there.

Indicators

Only three indications are required:

The entries are:

the peak using a 20 Exponential Moving Average (dodger blue) the bottom using a 20 Exponential Moving Average (red)

When using the trailing stop:

the peak using a 10 Exponential Moving Average (red)

applying a 10-exponential moving average to the low (dodger blue)

A second entrance indication is:

Periodical Relative Strength Index 10, between 45 and 55 (dodger blue) RSI using a 10 Simple Moving Average (red)

A. The Highs and Lows 20 EMA

The 20EMA of the highs is added first. Clicking on the Indicators button in the toolbar will allow you to access your indicator files where Moving Averages are located.

Next, pick Moving Average from the new popup menu by hovering your cursor over Trend.

Because I recently used it, the Moving average option appears at the top in the example below; however, this may not be the case for you.

The Moving Average characteristics box will appear after you choose the Moving Average indicator. First, ensure that the Parameters tab is selected, and then complete the form so that it resembles the one below. Click OK after the fields have been correctly filled out.

Of course, you may choose any color and any line thickness, but the values must be consistent:

Period: 20

Shift: 0

MA method: Exponential Apply to: High

The 20 EMA of the lows is then added.

We apply a new moving average by following the same procedures as before, but this time, when the characteristics box appears, we decide to apply to the lows. I also change the color of this EMA. Click OK after the field has been correctly filled out.

Period: 20

Shift: 0

MA method: Exponential Apply to: Low

10 EMA of the Highs and Lows

We now add the 10 EMAs precisely the same manner as we added the 20 EMAs.

You’ll see that the line colors from the 20 EMAs have been switched around for the 10 EMAs. Red and blue colors represent the 10 EMA high and low, respectively.

You’ll also see that I picked the narrowest line and decided to make it dotted rather than solid. This will make it easier for us to tell the chart’s lines apart.

10 EMA of the High

10 EMA of the Low

RSI

In the toolbar, choose the indicators button to add the Relative Strength Index.

Next, pick Relative Strength Index from the new popup menu by hovering your cursor over Oscillators.

Because I recently utilized the Relative Strength Index in the sample below, it is at the top; however, this may not be the case for you.

When you select the Relative Strength Index indicator, the Relative Strength Index properties box will pop up. First, make sure the Parameters tab is chosen, then you need to fill it out so it looks like the one below.

Of course, you can make the color and the line thickness anything you like (I use the second thickness in the selection), but the values should be as follows:

Period: 10 Apply to: Close

By default, the 2 check boxes at the bottom (Fixed minimum & Fixed maximum) will be checked. I like to uncheck them to allow the RSI to fill its indicator window.

The RSI is then increased to 45 and 55 respectively.

You must increase your Relative Strength Index by 45 and 55 levels after selecting the Levels tab.

Again, you have complete control over the color and line thickness.

1. A level will show up in the level window.

Create a level of 45.

3. Press the Add button one more (you might have to click it twice to get a new level in the window).

4. Level this up to 55.

You may adjust the line thickness and color to your liking. Since I would be using this on a black chart, I made the level line white and added a dot to the line. Select OK.

The majority of the indicators are now correctly set up on your chart. The 10 SMA must still be added to the RSI.

My chart is a replica of the basic chart for the Rapid Result Method, therefore it is black with white bull candles and grey bear candles.

Your chart will like this after the Forex Power Pro indicators have been added:

The 10 SMA will now be included to the RSI as the following stage.

1. Select the Navigator toolbar button.

2. To access the Indicators folder, double-click it.

3. After selecting the Indicators folder, scroll down until you find Moving Average. Drag and drag it into the window of the RSI indicator.

1. A box containing moving average characteristics will appear. Configure the following:

Period: 10

Shift: 0

MA method: Simple

You will not see the moving average on the RSI, take note. Instead, it will show up on the pricing chart.

Click OK after everything has been filled out.

Your completed chart will now appear as follows:

This method seems to be rather straightforward. It is quite easy. It performs admirably!

Even without understanding precisely how to proceed, you can tell from the chart that it works.

Let me quickly explain the purposes of the various indicators before we go on to the system’s regulations.

The highs and lows’ 20 EMAs.

These EMAs are used to look for entry signals and to support the first stop loss placement.

We may enter a buy trade if the price closes above the highs’ blue 20 EMA. Our first stop loss will be placed right below the lows’ red 20 EMA.

We may enter a sell trade if the price closes below the lows’ red 20 EMA. Our first stop loss will be placed right above the highs’ blue 20 EMA.

10 EMAs for highs and lows

We use them for our trailing stop. The 10 EMAs will serve as a reference for adjusting our stop loss once the market begins to move in our favor. The 20 EMAs are used to color the 10 EMAs.

In a buy position, we will trace our stop loss using the blue 10 EMA of the lows. The 10 EMA of the lows will increase as price increases. We will move our stop to just below the 10 EMA of the lows with each successive closed candle.

In a sell trade, we will trace our stop loss using the red 10 EMA of the highs. The 10 EMA of the highs will decline as price declines. We will move our stop to just above the 10 EMA of the highs with each fresh closed candle.

The 10 SMA and the RSI

An entry signal is confirmed by the RSI. The RSI/10 SMA combo allows us to trade without ever glancing at the price chart.

In order to execute a buy trade, the RSI must cross both the 10 SMA and the 55 line.

In order to execute a sell trade, the RSI must move below the 45 line and the 10 SMA at the same time.

 

Rules

ENTRY Rules

1. Buy Trade

  1. Price closes above the blue 20 EMA of the highs.
  2. RSI is above the 55 line.
  3. RSI is above the 10 SMA on the RSI indicator.

We are prepared to join the market in a buy trade when all the pieces come together.

2. Sell Trade

  1. Price closes below the red 20 EMA of the lows.
  2. RSI is below the 45 line.
  3. RSI is below the 10 SMA on the RSI indicator.

We are prepared to join the market in a sell transaction whenever all the pieces come together.

STOP LOSS Rules

Buy Trade

Initial Stop Loss

The first stop loss will be positioned a few pips below the red 20 EMA of the lows when we initiate a buy trade. (T will change with each time period.)

Trailing Stop Loss

The stop loss will be adjusted along the blue 10 EMA of the lows when fresh candles open and shut (dotted line). Your risk will be reduced nearly instantly as a result. Any trading method should take into consideration this factor.

The 10 EMA of the lows will rise when a candle closes. We relocate our Stop Loss to this new location beneath the most recent closed candle.

Sell Trade

Initial Stop Loss

The stop loss will be positioned a few pip above the blue 20 EMA of the highs when we initiate a sell trade.

Trailing Stop Loss

The stop loss will be adjusted along the red 10-EMA of the highs when fresh candles open and shut (dotted line). This will almost instantly lower your risk, which is crucial for any trading technique.

The 10 EMA of the highs falls when a candle closes. We relocate our stop loss to this new position above the most recent closed candle.

TAKE PROFIT Rules

Buy Trade

What price do we set when we identify a trading setup? My basic guiding principle is a risk to benefit ratio of 1:1.

A 2 to 1 risk reward will typically succeed, as you can see by looking back in time on your charts.

But initially, the 1:1 is the most secure wager. It will increase your winnings and decrease your losses.

A 1:1 risk to return ratio is what?

As a profit objective, we aim for whatever our stop loss is.

If our stop loss is 25 pip’s distant from where we enter the market, we’ll aim for a 25 pip profit target, for example.

Sell Trade

Again, we start by looking at the stop loss we have in mind after applying the 1 to 1 risk reward ratio. The stop loss in the example below is 40 pip’s distant from the entrance. This is the one we set when we initiate the transaction; it is known as the Initial Stop Loss. With this stop, we will have traveled the farthest.

The stop loss will approach the entry level when the 10 EMA approaches the entry level as the market swings in our favor. To reflect the new Stop loss level, we DO NOT adjust our take profit level. The Initial Stop Loss was set at the current distance, and it will stay there.

Trade Examples

Complete Buy Trade

1. A candle closes above the high-frequency 20 EMA.

2. The RSI crosses the 55 thresholds.

3. The RSI is higher than its 10 SMA.

4. The stop loss is set below the 20 EMA of the candle’s lows, which served as the entry signal.

Just focus on the closed candle that signaled the entrance instead of swing lows. For this trade, the Stop Loss is set at 35 pips.

5. A 35 pip take profit will be applied. If the stop is 65 pips, the take profit will likewise be 65 pip using the 1 to 1 (1:1) risk to reward ratio.

6. If we do lose this trade, our risk and potential loss will be reduced since the stop loss will move along with the 10 EMA of the lows as the price increases in our favor.

Complete Sell Trade

1. A candle closes under the lows’ 20 EMA.

2. The RSI drops below the threshold of 45.

3. The RSI is below the RSI’s 10 SMA.

4. The stop loss is placed above the 20 EMA of the candle’s highs, which served as the entry signal.

Just focus on the closed candle that signaled the entrance instead than swing highs. The trade’s Stop Loss is 65 pip.

5. A 65 pip take profit will be applied. If the stop is 65 pip, the take profit will likewise be 65 pip using the 1 to 1 (1:1) risk to reward ratio.

6. Should we lose this trade, the stop loss will move with the price as it moves in our favor, minimizing our risk and possible loss.

2 to 1 Profit Target Option

You’ll discover that many of your transactions succeed in returning twice as much as your risk. This indicates that if you set a stop loss at 50 pip, you may reach your profit objective of 100 pip.

This sort of deal may significantly increase your earnings, and the advantage of this aim is that you only need to break even by winning one trade and losing two others.

victory percentage in order to avoid making or losing any money. You shouldn’t ever go so low with appropriate trade management; you will be performing much better.

Trade management was highlighted. The greatest thing you can do to get a 2:1 risk-reward ratio is to:

Move your stop loss to break even when you reach the 1:1 level. If your stop loss is 25 pip and your aim is 50 pip, move your stop to break even when the market achieves 25 pip profit.

 

Conclusion

I sincerely hope that you will treat this system as a trading system that can help you get to your dreams and accomplish your goals as a trader.

Please enjoy this system and let it help you achieve your goals!

Thank you very much for your time and your consideration. Best of luck to you in your trading and in your life as a whole!

 

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