Hedging Dynamic Forex Strategy (2024)

Submit by Karl

Hedging Dynamic Forex Strategy is a trading system trend momentum based on classic crossover of moving averages filtered by slow stochastic. This strategy can also be interpreted in a dynamic hedging key due to its characteristic of being able to generate few operations in long lateral phases. Here I present a basic idea of how to eventually develop an EA expert whose settings vary from currency pair to time frame. But the idea I propose is clear.

Time frame 15 min or higher. The time frame at 15 min and 30 min is recommended only on the following currency pairs: EUR / USD, USD / JPY, AUD / USD. For other currencies a time frame of H1 or higher is recommended. On the daily time frame the strategy can also be managed manually. The reason I give this recommendation is that brokers between 22:30 and 24:00 GMT Berlin extend the spreads a lot.

Best time frame is 4H or daily.

For the 4 hour or daily time frame I propose also a strategy momentum only based.

Technical indicators.

Moving Average 34 period smoothed close.

Moving Average 14 period smoothed close.

(or Moving Averages 21 and 50 is more slow but good and proven solution)

Stochastic oscillator 21, 10, 10, close.

X indicator period 18 ( optional).

Trading rules Hedging Dynamic Forex Strategy

Buy

Moving Average 14 period smoothed crosses upward Moving Average 34 period smoothed.

Slow stochastic above 75 level.

Sell

Moving Average 14 period smoothed crosses downward Moving Average 34 period smoothed.

Slow stochastic below 25 level.

Hedging Rules

Martingala multiplier 1.5 or 1.4. max 10 trades for cycle.

Examples: USD/JPY, GBP/USD, AUD/USD.

15 min time frame USD/JPY Target Profit 15 pips, increase each subsequent trade by two pips + dinamyc gap (pips) between buy and sell.

H1 time frame USD/JPY Target Profit 30 pips, increase each subsequent trade by three pips + dinamyc gap (pips) between buy and sell.

H4 Target Profit 70 pips, increase each subsequent trade by 5 pips + dinamyc gap (pips) between buy and sell.

GBP/USD 15 min PT 20, pips Increase each subsequent trade by two pips + dinamyc gap (pips) between buy and sell.

GBP/USD H1 min PT 40 pips. Increase each subsequent trade by three pips + dinamyc gap (pips) between buy and sell.

GBP/USD H4 min PT 20 80 pips. Increase each subsequent trade by five pips + dinamyc gap (pips) between buy and sell.

AUD/USD 15 min PT 10 pips, Increase each subsequent trade by two pips + dinamyc gap (pips) between buy and sell.

AUD/USD H1 min PT 25 pips. Increase each subsequent trade by three pips + dinamyc gap (pips) between buy and sell.

AUD/USD H4 min PT 50 pips. Increase each subsequent trade by five pips + dinamyc gap (pips) between buy and sell.

Approved by Admin ( Janus, Maximo and Joy22) as Swing Holy Grail!!!!

Time frame H4 and daily.

Technical indicators.

Stochastic oscillator 21, 10, 10, close.

X indicator period 18.

Rules Stochastic momentum strategy

Buy

Stochastic line crosses upward line red.

Sell

Stochastic line crosses upward line red.

Exit position at opposite cross or with predetermined profit target see the previous target. Place initial stop loss at the previous swing high/low but, in this strategy the stop loss cannot be used (it is occurring with several different tests).

Right now we are also doing a comparative study to apply this strategy to binary options and more.

Update 30/04/208

Change filter x indicator 10 periods from 18 and slow stochastic (14, 10,10), from some tests it seems better period, it manages to be more reactive in moments of volatility, especially at low time frames.

Trend momentum strategy based on two moving averages and CCI filtered.

This is a trend momentum strategy very accurate.

Time frame 5 min or higher. (Best time frame H1 or higher.

Currency pairs any.

Metatrader 4 Indicator

Simple moving average 8 period close, shift -1.

Simple moving average 20 period close.

Super CCI 34 period.

Buy

CCI Black line crosses upward red line.

SMA 8 period > SMA 20 period.

Sell

CCI Black line crosses downward red line.

SMA 8 period < SMA 20 period.

Exit when there is the opposite direction or with predetermine profit target minimum ratio PT:SL 1:1

Place initial stop loss on the previous swing High/low.