You can download Forex Directional Edge Strategy 43 page PDF manual plus the template and the indicators FREE. This is a gift from Vladimir Ribakov. He is giving his very effective trend trading strategy as a gift as part of the prelaunch of his Forex Scorpio Code. Forex Directional Edge Strategy uses Bollinger Bands. We use the Bollinger Bands to find the direction of the market on higher timeframe then we again use BBs to trade on the lower timeframe. Below is a screenshot of the this strategy in action.
As you can see this strategy uses Bollinger Bands. I am not a huge fan of Bollinger Bands. But here I think we have a good trend trading strategy based on Bollinger Bands. This is what Vlad has done. he has developed a FxScorpio Directional Edge Indicator. this Directional Edge Indicator has two components. One is the histogram and the other is the dashboard. You can see the histogram below. You can see the dots on the histogram in the 2 screenshots. These dots are extra confirmation before we enter into a trade. Dashboard helps us to check the market direction on the higher timeframe without the need for switching back and forth between the timeframes. There will be three dots on the dashboard. The first dot will be H1 timeframe which is the timeframe that we will use for entering and exiting the trade.The other two dots are for H4 and the daily timeframe.
When the candle closes above the BB, we get a green dot and when the candle closes below the BB, we get a red dot. Dashboard check the three timeframes H1, H4 and D1 and colors the dot whether the candlestick closed above or below the BB on the timeframe. When the three dots are red, it shows a very bearish market and when the three dots are green, it shows a very bullish market.
This is how we are going to look for a buy signal. When the candle closes above the Bollinger Bands (BBs) on D1, we can look for a buy signal as long as the price stays above the 20 SMA middle BB line. If the price closes below the 20 SMA, this buy rule is no longer valid.Now we look at H1 timeframe. The price should go below the lower BB. When the price closes above 20 SMA the middle signal line on BB, we go long. These are the buy rules. Stop loss will be placed below the last swing low. Profit target should be twice the stop loss.
These are the sell rules. Price should close below the lower BB on daily timeframe. As long as the price stays below the 20 SMA on the daily timeframe, the sell rule is valid. If price goes above the 20 SMA, the sell rule becomes invalid. Now we shift to the H1 timeframe. Price should close above the upper BB on H1. We will wait for price to close below the 20 SMA. Once that happen, we can open a sell trade. Stop loss should be above the most recent swing high. Profit target should be twice the stop loss.
As said above, we will use the histogram for extra confirmation. Look for 2 consecutive dots on the histogram in the same direction. This is for conservative traders who want extra confirmation otherwise you don’t need to use this extra confirmation. This is what you should do. Test the Forex Directional Edge strategy on the demo account. Make at least 50-100 trades with it. First install the indicators and the templates on at least 20 currency pairs. This will ensure that you get good signals.
Make a trading journal and enter each trade in that journal with the details like the entry, stop loss and profit target. Also mention whether the trade ended in a win or a loss. After 50 trades, you can calculate the win percentage and the loss percentage plus the average win size and the average win loss. Always make it a rule. First test your trading strategy and the trading system on the demo account thoroughly. Only trade live with your trading strategy if you get good results on the demo account.
Once you shift on the live account start with only $100 and once again test the strategy thoroughly. Always take risk management very very serious. This is a good strategy with a 2:1 Reward to Risk ratio. What this means is that if you lose a trade, you can easily recover the loss with the next win. Ideally you should look for trades with high Reward/Risk something like 5;1 or 10:1. This strategy has a Reward/Risk of 2:1 which suffices. But as said above you will first test the strategy on the demo account.
Forex Direction Edge Strategy is a free strategy that Vlad is giving as part of pre-launch of Forex Scorpio Code. In the next few days he will open the doors to his Forex Scorpio Code. When you download Forex Directional Edge Strategy, you can also download the Forex Market Control System that Vlad gave away yesterday. After downloading these two systems, you should leave a good comment below the download page thanking Vlad for giving two very effective trading systems FREE. Make sure you leave an outstanding comment. After a few days Vlad is going to select the best comment and give the maker of the best comment, his Forex Scorpio Code gratis.
Forex Scorpio Code is a great system. Vladimir Ribakov is a successful forex trader who has been trading forex successfully for the last 14 years. So you should rest assure that he will give a good system that can help you achieve your dreams of financial freedom. If you don’t win Forex Scorpio Code gratis, you can still try it.