Lucky Stars Strategy For MT4

Lucky Stars Strategy For MT4

Table Of Contents:

  1. Lucky Stars Strategy For MT4
  2. The Lucky Stars Strategy For MT4 – Long positions
  3. The Lucky Stars Strategy For MT4 – Short positions
  4. Is the Lucky Stars Strategy For MT4 profitable?


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 Lucky Stars Strategy For MT4 is a trading system that is nothing but a trend following trading strategy. It makes use of moving averages as the main indicators that drive this trading system. The rest of the indicators are the usual belts and results that you find in a trading system that tries to portray itself as one of the sophisticated trading strategies. In fact, there is nothing sophisticated about the lucky star strategy.

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In total, there are five indicators that are used in this trading system. Most of these are custom indicators. The first is called the lucky star's easy indicator. This indicator is responsible for plotting the up and down arrows on the price chart. However, as you can see the up and down arrows reflect the very short term retracement in prices. These up and down signals do not represent the major trend.

The next indicator is called the lucky star pivot indicator. This is again a customized indicator. However, this indicator simply plots the intraday pivot levels on the price chart. This is what you can see based on the green and the red lines shown on the chart. The support and resistance levels can be used as potential take profit levels for your trades.

The two moving averages which we think are the most essential indicators to this trading strategy. These are the two exponential moving averages. The long term moving averages based on a 32. Setting, and the short term moving average is based on a 16 period setting. The market trends are therefore depicted based on how the short term and the long term moving averages crossover each other.

In the sub window of the lucky star trading strategy, we have a custom indicator. While usually one is prone to see an indicator such as an oscillator, this custom indicator merely plots histogram bars. By default, this indicator is supposed to show the strength of the candle sticks.

But as you can see the signals are hard to understand. Traders can potentially look at replacing this indicator with a more meaningful oscillator such as the stochastics indicator or the relative strength index indicator.

Let's now take a look at how you can use these indicators to trade with the lucky stars trading strategy.



The Lucky Stars Strategy For MT4 – Long positions




For long positions using the lucky stars strategy, we wait for the market to signal a bullish trend. This is what you see when the short term moving average which is the white dashed line is above the long term moving average which is the thick yellow line. You can ignore the up and down signals that are shown on the price chart. As we mentioned earlier these signals are misleading.

After you identify that the market is in an uptrend, wait for price to make a high and then make a retracement. This retracement will create a local swing low. You should set your long order as a pending order near the high that formed and set your stop loss to the local swing low. For your take profit level, you can either use one of the resistance levels that you see below the price, or you can set your take profit level based on a calculated risk to reward ratio.

As a confirmation, you can also look for validation from the signals in the sub window. However, given that it is quite complex to understand this we recommend that you purely focus on the price action trading and the trends based on the price chart.



The Lucky Stars Strategy For MT4 – Short positions




For short positions using the lucky stars strategy, we wait for the market to signal a bearish trend. This is what you see when the short term moving average which is the white dashed line is below the long term moving average which is the thick yellow line. You can ignore the up and down signals that are shown on the price chart. As we mentioned earlier these signals are misleading.

After you identify that the market is in a downtrend, wait for price to make a low and then make a retracement. This retracement will create a local swing high. You should set your short order as a pending order near the low that formed and set your stop loss to the local swing high. For your take profit level, you can either use one of the support levels that you see below the price, or you can set your take profit level based on a calculated risk to reward ratio.

As a confirmation, you can also look for validation from the signals in the sub window. However, given that it is quite complex to understand this we recommend that you purely focus on the price action trading and the trends based on the price chart.



Is the Lucky Stars Strategy For MT4 profitable?


Based on the trading rules that are defined in the lucky Stars strategy, we come to the conclusion that this is no different from a regular trend following strategy. The addition of a couple of pivot points and a few other indicators does not really bring any major change to the overall basics of trading with this strategy.

Furthermore, we find that the use of the lucky stars VF indicator that you see in the sub window also does not represent market information correctly. There for beginners might find it a bit confusing to trade based off the signals using this strategy.


In fact, in this article we have tried to keep the trading rules as simple as possible. This is why you can see that the trading rules are based on the trends rather than focusing on the signals from the sub window.

From the above, we can therefore state that the lucky star strategy is nothing unique. In fact, it is merely a whitewash of regular trend following trading system. Applying complex looking trading indicators does not make it sophisticated and neither does it give traders an edge in the markets. Therefore, you will not be missing anything if you give this trading strategy or miss.

Download the complete system description and the files here:

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