Zig Zag Hist system For MT4
Table Of Contents:
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 Zig Zag Hist system For MT4 was curated to fine-tune any existing trading method. But due to the intensity of this trading method, many retail traders are getting dependent on this system. Especially those who are involved with the options trading market.
Moving average 2 periods close, Moving average 3 periods close, Moving average 200 periods close, Zig Zag hist and some variables coding has been used to perfectly tune the trading method. In general, the time frame in which you will analyze the market data has not a significant impact on the expiry of the orders. As for the thumb rule, we will be using a sixty-second-time frame as the expiry period as it will give us a better chance to execute quality trades without zero issues.
The template can be used to trade Forex, commodities, index, ETFs, and cryptocurrency. Though the system is perfect for any market, we have to carefully analyze the key variables and find the best possible trade setups by lowering down the risk exposure in the trades.
To be on the safe side of trading, we must learn to use the key steps. In rare cases, this system is also used to trade major news. But this requires advanced trade management skills. We will learn the key technique in the latter part of this content.
Call option setup
Expecting the price to go higher tells us to execute the call option. If we ignore the call option setup, it will be a tough task to manage the risk profile and we will lose money most of the time. We describe how to trade the key reversal by using this method.
So, find a downtrend in the asset and wait for the price to hit a bottom. After hitting the bottom, the price will slowly consolidate and try to make a new high. It will require patience since the consolidation in the price can be pretty lengthy it will be tough for the aggressive trader to wait for the breakout.
The pink color dashed line will act as the support line and the price will bounce back where the pink and golden band coincides. After the price breaks the major resistance and creates a new high, it’s time for us to execute long. The 2 and 3 moving average will act as the endpoint of the retracement.
The bulls will get a bit exhausted after the break since they have to spend a huge amount of buying momentum in establishing a new force against the downtrend. At the retest of the 2 or 3 moving average, you can open a long trade and make a decent profit without losing too much. But be careful about the execution as the risk exposure must be limited by a 2% rule.
At the trade management segment, we will discuss it more elaborately. But remember, the expiry should be the 60s and not higher than that. If you chose higher expiry, you must stick to the trend trading concept. Let’s see who we can go for put option by taking the trades with the major trend.
Put option setup
For our put option, we will use the simple trend trading technique. The benefits of the trend trading technique are enormous as we can lower the risk exposure to a great extent and it also helps us to improve the efficiency of the trading method. Before we dive deep, we have to know to find a bearish trend. Look for new lows in HFT to assess the trend.
For simplifying the entry, we will be looking for the double top pattern at the chart. When the double top pattern is confirmed, we notice two segments of a blue line that indicates the price is not ready to go any higher. This level indicates that we must focus on the trend and short the asset. When the price test the golden band, wait for the light orange dot.
The light orange dot tells us, we have to short the asset as the price is not ready to go any higher. The system can super perfect but we must entertain the idea of losing trades. Many retail traders have lost their entire capital just because they didn’t have the skills to deal with complex market analysis. But if you spend some time and take the trades by fixing the expiry and chose the right asset, you will get better results most of the time.
Try to avoid taking the high risk or aggressive steps as it can improve the confusion in the trading method. The traders tend to do best when they take the trades in the lower time frame without increasing the risk factors to a great extent. So, trade with discipline and don’t get biased by taking high risk in each trades.
Trade management technique
You should be careful about the trade management technique as it is one of the efficient ways to improve your efficiency in maintaining the cash flow. Your efficiency in maintaining the cash flow. Your efficiency in maintaining the cash flow. The maximum amount of money that you should be risking in the trades is 1%. But this is only applicable for the counter-trend trading technique.
If you trade in favor of the trend, the risk can be as high as 2%. But this should be done in a very systematic way. The maximum risk you should take in the trade is only 2 even though you deploy the PA signal. By lowering down the risk in the trade, it will be easier to improve efficiency. People often get triggered after seeing a series of losses.
But this series of losses should be handled with care. Increasing the risk not going to improve your performance. Rather it will impose a threat to your career. You should be careful enough to take the trade and lower the risk. And for that of the news, it’s good to avoid taking trades in any news.
Trading with high risk is one of the main reasons to lose money in news trading. So, for the news trader, the fixed percentage of risk is only 1 as it will keep the stress level low.
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