⏳Strategy "Medium-term counter market dynamic"
Last updated
Last updated
This strategy is a consequence of the "Counter Market dynamic" strategy, but their differences are that the first one refers to scalping, and the current one refers to swing trading. Here you need to enter positions for a long time, while taking away the medium-term trend. The peculiarity is that positions will be accumulated using the cumulative method, and the entry price will be averaged.
First you will need to set up a workspace:
Step 1. Go to "Add Widget" and open the "Trading View Chart" tab.
Step 2. In the open chart window, select the traded instrument and set the timeframe for 1 minute. Although this strategy refers to swing trading, it will be more convenient to find situations on a minute timeframe.
Step 3. Open the "1EX Indicators" and add the "Market Dynamic" indicator with a period of 1 minute to the chart.
After setting up, the workspace should look like this:
The value of the line!
Green line - market dynamics, which shows the strength of price fluctuations and its beating over a certain period of time.
Description of the trading strategy!!!!!
Theory: With an extreme surge in market dynamics, the price, as a rule, often reacts with a reversal or indicates a reversal in the medium term.
You need to select the extreme deviation of the market dynamics for about the next month and set a horizontal line on the indicator.
Как только значение индикатора превышает экстремальное значение - заходим в сделку на разворот!
Additional conditions!
You do not need to constantly enter into a trade as soon as you see a signal. We enter the position if the previous dynamics is lower than the current one, and the price has gone even more in your direction!
We re-enter the trade only when we are at a loss to average the position!
If the extreme dynamics occurred in an alternating array, then enter the deal on the first spike, and enter the next deal only after the dynamics fade out and recover!
Closing a position at the level of the first entry point (if the trend accelerates and there are no significant price reactions on the reversal).
The trading result in this situation in 18 hours and 20 minutes = +1.87% excluding leverage.
Closing a position using the average method (from the highest point to the lowest entry point, we determine the distance and divide it in half, after which we measure this value from the first entry point towards profit and set a take profit). In the situation below, we took the first entry point and the last one, measured the distance (990 pt.), divided it into two (495 pt.), set the take profit at a distance of 495 points from the first entry point.
The trading result in this area (includes two situations) in 5 hours = +7.49% excluding leverage.
Closing a deal on a counter signal of the strategy.
The trading result in this situation in 2 hours = +2.04% excluding leverage.
CONCLUSIONS:
You can use this strategy both independently and as one of the filters within a variety of trading strategies used by traders.
IMPORTANT! Trading involves risks. The user is solely responsible for their actions or inactions when using the described trading strategy. The strategy and its description are for informational purposes only. The information provided here does not constitute personalized investment advice. News, articles, expert comments, research, forecasts, and other information are presented without considering any specific investment profile, and the financial instruments or operations mentioned may not align with the expected returns, investment horizon, or acceptable risk levels for any particular user. Company 1EX is not responsible for any potential losses resulting from trades based on the described strategy or investments in the financial instruments mentioned in this publication.
