Kill Market Strategy For MT4
Table Of Contents:
- Kill Market Strategy For MT4
- Kill Market Strategy For MT4 Long trade setup
- Kill Market Strategy For MT4 Short trade setup
- Trade management techniques
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 Kill Market Strategy For MT4 allows us to open trades in a ranging market. Though the primary purpose was to use it as a reversal strategy but the strategic implementation of the tools can help to find trades in any form of price movement. The market might be trending, ranging, or at the reversal point, but you have an 80% chance to win when you follow the steps according to this guide.
Kill market and the Bollinger band are the only indicators for this template. Don’t get fooled because you are seeing only two tools that will be used. To open the trade, we are required to use basic knowledge of investment. That means, having skills on support resistance, stages of a trend, and false breakout are the perquisites to use this technique. Investors who are in this business for more than two months should have these basic skills.
Unless you don’t have this skill, you must take a step back and use the learning platform to get complete the basics. Once it is done, it’s time for us to know how the kill market strategy can help us to earn money. The strategy is designed to open trades in 15M and the 30M chart only. The reason to choose these two-time frames is to keep the door open to trade any forms of market.
That means, we no longer require to invest money in trending assets as it can allow us to predict short term movement. To get the best result, the killing strategy should be used to trade currencies only. However, having sound acknowledgment of the steps can help you to open trades in any financial instruments.
Kill Market Strategy For MT4 Long trade setup
People usually learn about reversal or trend continuation strategy. We have decided to start with the ranging market trading technique. A ranging market doesn’t have any specific trend that means the price will be stuck in a rectangle zone. The Bollinger for this template is going to be a channel that will appear parallel to the base of the chart.
The price should respect the support and resistance as if the asset is trading inside a hollow pipe. Before we open the trade, we need a green arrow at the support and a red arrow at the resistance. The third arrow will be green and the fourth arrow must be red. This sequence validates the formation of a ranging market. If the sequence is altered, you don’t have a ranging market.
Provided that you have such placement of the arrow in chromatic order, it’s time to wait for the fifth arrow at the support. The fifth arrow will be green in color. There should be no false break in the red support line of the BB (Bollinger band). Open the long trade with the stop below the red line of the Bollinger band.
The stop is usually 15-20 pips and the take profit is nearly 40+ pips. It depends on the distance of the green line of the Bollinger band. But careful of the false break. False break immediately discards the trade setup and you should be waiting for a new setup.
Kill Market Strategy For MT4 Short trade setup
This setup is going to be more like a trending method. But the same rule is applicable to open trades when you expect to deal with a reversal. The trend should be bearish or the price has to trade at an extreme high. When you consider the high or the reversal technique, it is best to introduce a double top pattern.
It will give you more confidence to sell at the green line or the resistance of the Bollinger band. In this case, we have to find a false break of the green line. The false break of the green line signifies the market is killing the early short trades. In other words, stop loss hunting will take place. A red arrow should appear when the stop loss hunting is done. But you still need to wait on the driving seat.
The price will be dropping below the green line. A drop below the green line shows, the market has stabilized and is ready to test the red line or the support. So, any rational investors should be selling at this level. But don’t get freaked out just because you have a false break in the action. The false break is capped by the red arrow of the kill indicator.
Just because it’s a simple mark that caps the bulls, don’t try any fancy stuff just to increase the change winning the trade. This kill strategy is well tested and it’s meant to make your trading life easier. Getting into the complex chart and memorizing critical steps makes you vulnerable to make more mistakes.
This is the leading reason to become a frustrated trader. So, have faith in the system and follow this guide. But be still you do have to know the process of managing the trades.
Trade management techniques
As you can see, the system is not hard to use. The trade management part is easy too. But people get the wrong idea that they can be flexible with the killing strategy as it doesn’t depend on too many indicators. The reason you can’t be flexible with the rules, the system is dependent on very well-calibrated sets of indicators.
And changing any steps or sequences will hamper the win ratio. Now let’s dig to the steps to find the stop loss. The green line is going to stop level determiner for the long. But the SL must be 10 pips below the green line. For the short trade or trades that have a false breakout, we have to use the highs of the candle that has the arrow level.
Place the SL 5 pips away from the high of the candle and you should be fine. The TP profit level is adjusted with the channel SR level that means you do have a great RR ratio. But don’t get fooled the system will always help you to win. Always expect to lose trades and keep the risk to 1%. This can significantly improve the chance of surviving in the market and it will reduce the unnecessary loads while taking important decisions at trading.
Download the complete system description and the files here: