Wait for the signal modified Strategy For MT4
Table Of Contents:
- Wait for the signal modified Strategy For MT4
- Call option setup
- Put option setup
- Managing the trades
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 Wait for the signal modified Strategy For MT4 is powerful indices trading method. The experienced traders know the volatile nature of the index. You can experience more than 200+ pips movement in a 1-minute candle when you deal with the dow Jones which also often known as the US30.
But don’t think this system can’t be used to trade Forex, commodities, CFDs, and other financial instruments. The system is designed to withstand any level of market and it can improve the skills of a trader with the level of precision. Value chart deluxe, KDJ arrow, ForexMTN, and tweaked coding are used to create a template. Though the original functions of this system are dealing with the volatile market like stocks and indices we will stick to the Forex pairs for the first three months.
Before you start trading an intense market, it will be a tough call to decide at the right time. For the betterment of the trader, we will guide you in the simple market. As you gain more confidence with this trading method, you can make the switch to a more complex market. But remember, Forex pairs can be traded with a 2% risk.
But to trade in any other market, the maximum risk should be 1%. And if you lose one trade in a day, you should take the day off. Taking steps to recover the losses is going to cause big trouble and you will lose more money since you won’t have that mental stability. Now let’s see how we can take the call and put trade with this method.
Call option setup
For the call option, we have to find a bullish trend. But if you fail to find the bullish trend there is nothing wrong with it. Stick to the key steps mentioned in this article and you will be able to make progress with this method. We will be using the concept of the double bottom to take the call option with this trading method.
Before the second bottom takes place, dual blue circle in the Carlos Mestre indicator. The blue dots tell us the buyers slowing taking the grip of the market and eventually, they will push the market to a new high. Now it’s time for us to wait for the buy arrow mark to appear in the main chart.
The buy arrow should appear right at the point where the second bottom should take place. At that level, you will get a red dot Carlos Mestre indicator. The red dot will be at the top of the purple bar indicating the bears have run out of the steam. Before that, we must have a strong bullish cross in the three signal line present in the present in the KDJ indicator.
The cherry and sapphire color lines will cross above the green line suggesting a strong bullish momentum has taken place in the market. At that time if the bar in the value chart deluxe indicator is green, you can take the long trade with confident. But control the risk for the trade as taking a high risk might create a hard situation for the retail traders.
Put option setup
Shorting the asset with this method is a very simple process. You have to wait for the double formation in the main chart. Both of the tops should be accompanied by the bearish red arrow market. The red arrow mark will suggest the sellers have managed to dominate the market.
Before the formation of the double top, we have a dual red circle in Carlos Mestre indicator. The dual red circle at the top of the purple bar is the indicator that the buyers have lost the momentum. Whenever you spot dual dots, you can expect the loss in the current momentum. Wait for the bearish cross in the KDJ indicator.
The red and the blue line will cross below the green line suggesting the price is ready to push to a new low. When the price push to a new low, you can short the asset. But for the financial confirmation, we will value the chart deluxe edition indicator. The indicator must show a red bar when the second arrow market is formed. The red bar will suggest the price is ready to drop and we can short the asset.
Before you take the put option, you should carefully analyze the expiry of the trade. In case, the analysis is done in the 15-minute chart, you can add + - 10 minutes to the analytical chart to get the expiry period.
However, things are quite different when you get into the trades during the news trading time. You have to rearrange the risk profile and reevaluate the setup from a different angle. If you want to avoid such hassle, ignore taking trades in the news as the trade management is tough for the rookies.
Managing the trades
The simple trade management process for this system is very easy. As a trader, you should depend on the complex trading process since you know it won’t work in the long run. Take risk of less than 1% when you focus on the core concept of trading.
In case, you trade with a stable market by selecting the Forex asset, you can risk up to 2%. But for indices, stocks, and commodities, you can’t increase the risk period. The expiry period for the Forex market is + - 10 minutes in which the data are being analyzed. But for the stock and other markets, it should not exceed 30 minutes. Due to the intense volatility of the market stock market, you must avoid taking trades during the news.
Remember, the system is easy and can create high-quality trades. But you ant increase the risk by winning some trade. Confidence is good but becoming overconfident in any system leads to loss. Try to use this system as an intraday trading method and limit your risk without taking aggressive steps.
And keep on studying the different price dynamics of the market so that you can adapt yourself to the dynamic condition at any instant. But don’t jump to trade with emotional steps. Emotional traders will always lose money even if they get a 99% win rate.
Download the complete system description and the files here: