Strategy XYZ trading For MT4
The Strategy XYZ trading For MT4 often creates massive confusion among the users. Unless you know the core method to use this trading method, it will be tough to rely on this edge. Different people tend to use this system differently.
But we will simplify the process so that the system becomes more adjustable and easier to the rookies. Thanks to the modern platform as it helps us to get the edge into a bundle. You are no longer required to set different parameters and impose hard rules on the indicators to develop the edge. The template is well built for the traders and you can trade the financial market just by knowing the core steps. We often think higher time frame trading is more profitable as it gives strong profitable signals to the traders. But this is not entirely true for this method.
It becomes hard when you start tracking the signals in the daily or the extreme TF. The optimum time frame for this edge is the start from the minute 30 chart and extends up to the 4-hour chart. As a new user, you should get used to the system with a paper trading account.
The support, resistance points are featured with lines, channels, marks, and most importantly by the price bars. But to take trades with the patterns of the bars or candles, a trader has to learn price action signals. As we all know learning PA is hard, we have come up with an easy method in this guide. Let’s see how the long and short trades are taken at the important levels with knowing too much about PA.
Long trade setup
Executing a long trade requires a series of checks in the chart. Before that, we will teach you cool tricks to determine key trends. The Quad Reg channel might be a simple level for the traders but its patterns tell a lot. If the channel shape is more like a U structure, the trend is up.
On the contrary, inverted U like structure in the channel tells us the trend is down. So, you need the normal U structure in the Quad Channel since we don’t want to increase the risk by finding setups against the market. The bottom part of the Quad Reg channel works as a strong support zone.
But most of the time, this support zone will be breached when you have more support in the close proxy. Chances are high you will get the blue horizontal or the trend line right below that level. In case, you are lucky, you are going to get the yellow support line. Note that the yellow support line is not mandatory when you get the green arrow.
We have said, we will be using the price action bars for this method. You should see as strong a bullish pin bar or doji at the support level. In some cases, you have to wait for the dual candlestick pattern which is the bullish engulfing candles. When you get the price action confirmation, it’s time to look at the MMS Dot signal line.
It should at the bottom of the chart which will suggest to us the price will go higher at a strong pace. Place your stop loss below the doji or the PA pattern. The PA pattern is required as it tightens the stop. In case, you want to avoid the PA pattern, place the stop below the last recent swing low. For the take profit, you can use the Quad Reg channel.
Short trade setup
The short trades are taken when the Quad Reg channel is not in the regular U shape. This means it will be in the inverted U form. The inversion of the U gives us the clue about the trend. In most cases, the price will test the resistance channel and start falling. But like our long trade, if we have an additional resistance line, the price might test that level.
But in this system, we will teach you how to take advantage of the chart pattern and protect yourself from the false spike. If you find any possibilities for double top formation, be advised, a strong spike can hunt down the early stops. For this reason, we have to wait for the false break. The false break will be accompanied by the purple color arrow, and this arrow tells us a have a strong setup and indeed the breakout is fake.
So, if the MMS Dot signal line stays on the overbought zone, we are good to short the asset. The SL for this short trade setup is placed above the high of the candle. And the take profit is determined based on market volatility, support level position, and news factor. However, new traders can use a simple method for this system.
They can find the stop loss by using the average hourly movement of the price. If the average hourly movement of the price for the last 24 hours is 25 pips, the stop loss can be should be 35 pips. We are adding the extra 10 pips just to cover up the ups and downs in the price.
Managing the trades
We have covered most of the things related to the execution. But for the exit strategy, this system can be used in many different ways. We have already said, how the 35 pips stops can be used. Note that it will depend on the average hourly price movement for the last 24 hours.
In some cases, this might lead to every wide stop loss and we must learn to minimize the risk with the help of the price action pattern. For this reason, the traders should always learn a few basic price action patterns no matter which trading method they chose. It might sound very tricky at the initial stage but if you learn to take the trades with a paper trading account, you will know how to manage the trades efficiently.
Most people don’t have the idea, the market is very volatile. Traders with less than 1 year of experience should trade EURUSD, GBPUSD, AUDUSD, NZDUSD, and USDCAD pairs only.
The reason to limit the asset selection is to eliminate frequent losses due to false spike. For instance, if you chose the GBPJPY pair and set the SL without the PA bar, it is very normal the market will hunt down the stops. So, we should stick to the mentioned 5 assets as it lowers the risk.
Download the complete system description and the files here: