Explore trading forex strategy Boomerang
Explore trading forex strategy "Boomerang"
Punching coup strategies with capital management by the martingale method are fairly common. It is enough to recall such, famous in due time, trading systems as "Chameleon" or "Cheburashka." The main premise of the systems was to try to catch the beginning of the trend. And martingale helps compensate for a possible hit in the correction.
The creators of "Boomerang" tried to insure themselves against inaccuracies of entry, using "heavy" four-hour time frame (H4). For the same purpose, "live" currency pairs were chosen, which are used by the described GBP/USD strategy or on GBP/JPY.
Successful forex trading strategy & laquo; Boomerang & raquo;
On the main work H4 we "roll" exponential sliding (EMA) with period 18. Additional information about the market after the opening of the position will give us H1 and less long periods. But the main one will still be H4.
• The signal of entry into the long position will be finding the market above the muwing and the median of the previous candle. Finding a median is easiest by stretching the Fibo grid across candle extremes, a level of 50% will point to the middle. An alternative is to create another sliding, this time Simple, on the workfield with period 1 and a price of "Median Price (HL/2)." It is very important that the input signal described is correct only for the primary warrant, all subsequent ones are opened without looking back at the signal;
• Accordingly, entry into the short position is made when the market is lower, both EMA-18 and median price;
• Goals in this strategy are selected short, as well as feet. In this, the strategy is scalping rather than punching. Both levels of SL/TP are equal to 10 points and to facilitate calculations, the strategy is equipped with a level calculator in Excel format, which can be downloaded here. The opening price is entered in the Entry Price field and the opening direction is selected in the Direction. The levels are then recalculated in the table.
• If an open deal has closed down the foot, the next one opens in the opposite direction with twice the volume. Thus, there is a calculation for mandatory market movement in some direction, when the warrant closed on the profite will cover the whole chain of previous losses;
Alternative use of strategy
The main objective of the Boomerang strategy is to profit from small price fluctuations. It will be excellent for fans to be constantly in the market and to break the profit from market noise. However, Boomerang may well be seen as a profitable strategy in the forex market and with a steady trend.
For this purpose it is enough either to spend a profite position, or to open the next warrant immediately after the closing of the previous one according to the primary entry algorithm. In the first case you will have a break-even deal, standing on a trend, with continuously increasing prophite. And in the second - a chain of profitably closed positions scalping the trend. As a result, there is quite a successful forex strategy in various markets.