Kevinator Retracement Trading System For MT4
Table Of Contents:
- Kevinator Retracement Trading System For MT4
- Selecting the trading instrument
- Kevinator Retracement Trading System For MT4 - Long trade setup
- Kevinator Retracement Trading System For MT4 - Short trade setup
- Trade Management
- Kevinator Retracement Trading System For MT4 - Conclusion
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Kevinator Retracement Trading System For MT4 showcases the importance of retracement in the Forex market. Very few traders are able to take advantage of the market retracement. But to open the trades at maintaining extreme precision, you have to know the endpoint of retracement. Since the Kevinator Retracement Trading System depends on the retracement trading technique, it is widely popular in the professional trading industry. TMA bands, MTF Stoch, and retracement finder are the core indicators embedded in the strategy template. After loading the chart, you see the price is trading inside the TMA channel. And to find the trade confirmation, you will get two separate indicator window.
The TMA bands tell a lot about the market dynamics. Ascending TMA bands reflect bullish momentum and descending TMA bands suggest a strong downtrend in the market. The retracement finder indicator allows us to identify the best point to take the trades. To filter the bad trades we will be using the MTF Stoch 4TFX indicator. In the long and short trade setup segment, we will discuss the role of each indicator very precisely so that you can take the trades with confidence. However, to maximize your earning potential by using the Kevinator Retracement Trading System, a trader need to choose the right trading instrument. Let’s see how we should select our trading asset for this strategy.
Selecting the trading instrument
People who are completely new to the Forex market should trade the EURUSD and GBPUSD pair only. Their preferred time frame should be 15 minutes, 30 minutes, and the 1-hour chart. And all the trade needs to be executed during the London or the New York trading session. Intermediate can trade the major pairs and they need to select their trading execution time based on the trading session. On the contrary, experienced traders can look for the trade signals in any currency pairs but in that case, they have to evaluate the news factor, spread, and overall sentiment of the market.
We recommend using the Kevinator Retracement Trading System for trading the major pairs only. Once you successfully use this strategy for 1 year, you can slowly start taking the trades in different assets. Prior to the selection of a new trading instrument, you should deploy this strategy to trade the specific asset in the demo environment. Once you feel confident with your actions, you can start making trades in the real environment. But note that having a small list of trading assets allows you to trade in a much more organized way. Now let’s learn about the key steps taken by the professional traders to execute the trades based on this strategy.
Kevinator Retracement Trading System For MT4 - Long trade setup
We have already told the TMA band will act as excellent support and resistance. In an ascending TMA band, look for the rejection of the lower band. At times, you can expect to get a strongly bullish trade setup at the mid-band but in that case, the uptrend must be very strong. Once the rejection is spotted in the lower TMA band, check the reading from the retracement finder 1 indicator.
You should see the fresh white bar on the positive side which is the indication that the bulls are back again. If you look at the preceding bars at the retracement finder 1 indicator panel, you will see yellow bars are gradually getting smaller. This means the bears are gradually losing momentum which ultimately defines the end of the bearish retracement.
For the final check, you need to move to the MTF Stoch 4TFx4 indicator panel. The blue line should be testing the 20 levels or you may see an upward rally in the blue signal line. On the other hand, the red signal line should be sharply falling indicating the weakness of the sellers. Open your long trade with 2% risk and place your stop loss just below the low of the last candle. For the take profit, you can set the TP to the top of the band of the TMA indicator.
Note that you need to be extremely careful with the lot size calculation while using the Kevinator Retracement Trading System or else you might incur heavy loss.
Kevinator Retracement Trading System For MT4 - Short trade setup
Opening the short trade with the help of the Kevinator Retracement Trading System is pretty much similar to the long trade. In this case, you have to find a descending TMA band. Look for the price to rally higher and test the top part of the band. Once the price fails to break above the top of the TMA band, have a look at the retracement finder 1 indicator reading. Now, you should be seeing the white bar on the bottom part of the 0.0 line. Finally check the data reading in the MTF Stoch TFX4 indicator. In this case, the blue signal line will be trading right at the 80 levels. Now we will show you the tricky part of using this indicator.
In general, you were supposed to the red signal line at the bottom. But if you see the red signal line close to the 80 levels, there is nothing to worry about. This usually happens when the market starts to consolidate after testing the upper band. Open up the new short trade with an SL price right above the high of the last candle. And for setting up the take profit, you should be placing the take profit to the bottom part of the indicator channel. But note that you should keep the risk factor low in each trade.
Trade Management
The professional traders know very well that the Kevinator Retracement Trading System is bound to have some losing trades. That’s why they always recommend the novice traders follow stand money management rules. Those who are using this strategy to trade with a big trading account, should not risk 1% of the account balance. Since this trading strategy provides tight stop loss and big profit in terms of pip, you can easily increase the lot. But while increasing the lot make sure you are not placing the stops to close the highs or lows of the candle.
The rookie traders usually make a decent profit with this system. As they gain more experience, they start squeezing the stop loss and start losing money. But to survive in the trading industry, you should always place logic stops in each trade. If you tighten the stop just have more room to increase the lot, you are taking the wrong steps. Follow each step mentioned in this guide very precisely and only then you will get the true benefit of this amazing Kevinator Retracement Trading System.
Kevinator Retracement Trading System For MT4 - Conclusion
The traders gain more confidence as they win more trades. While using the Kevinator Retracement Trading System for the first time, you will definitely have some trouble. At times, you will notice the price of the asset is trading outside the TMA band most of the time. To solve this issue, switch to a different time frame or select another trading instrument. But never try to find a trade signal even though the market is clearly stating it is not suited for this strategy. Be honest to yourself while using this classic retracement based trading strategy.
Investors who have strong knowledge about the news data analysis can take the trades even at the news with the help of this system. But it is imperative that you look for the rejection in the TMA band by using the price action candlestick patterns. So, if you are good at analyzing the Japanese candlestick pattern along with the news data, you can expect to trade major news with a great level of ease. But make sure the risk in the trade is less than 1% of your account balance.
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