Rainbow Magic Trading System For MT4

Rainbow Magic Trading System For MT4

Table Of Contents:

  1. Rainbow Magic Trading System For MT4
  2. The Rainbow Magic Trading System For MT4 – Long positions
  3. The Rainbow Magic Trading System For MT4 – Short positions
  4. Is the Rainbow Magic Trading System 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 Rainbow Magic Trading System For MT4 is supposed to be one of those trading strategies where multiple moving averages are used in order to form a moving average ribbon or a rainbow. Such trading systems are called trend following systems and the use of multiple moving averages basically allow you to filter the long and short positions depending on how far price is moving away from the moving average.

In the case of the rainbow magic trading system however, this is not the case. This trading system makes use of proprietary indicators which require a license. Therefore, when you load the template, you will see that the indicators are not completely applied.


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All you're left with is just the indicator in the second sub window which comprises of a thick blue line and a yellow line which acts as a signal line. Long and short positions can be taken based on how the yellow line or the signal line is positioned in relation to the thick blue line.

Even if traders want to experiment in using the rainbow magic trading system, it is not possible. This is because due to the lack of the license file, you will receive multiple alerts every time the chart refreshes. This means that it will take you endless amounts of time simply to close out the alerts. There is also no way to disable the alerts leading to a very frustrating experience when using the rainbow magic trading system.

Traders can definitely give this rainbow magic trading system is due to the fact of incomplete or indicators that do not work. Still, we will outline the trading signals on how you can buy and sell using just the oscillator in the first sub window. Note that we do not have much information about the indicators used due to the fact that they are all custom indicators and are also using different names making it impossible to research on how these indicators work.

Let's now take a look at how you can trade long and short positions using the Rainbow magic trading system for MT4.



The Rainbow Magic Trading System For MT4 – Long positions




In order to take a long position using the rainbow magic trading system, you will need to look at the indicator in the sub window. Here you will notice that the yellow line is moving above the thick blue line. This suggests that the market trend is to the upside. When you see this, the indicator will also change its signal and alerts you to a buy signal.

After you see the signal appearing, you should also look at the price action itself once you are confirmed that the market momentum is moving to the upside, you can then take a long position at market. We recommend that you set a pending long order near the recent swing high that formed while identifying the recent swing low and set your stop loss to this level.

You can now calculate your risk to reward ratio and set your take profit level accordingly. We also recommend that you leave a part of your open position search that it captures more profits when the trend is strong. In the second case, keep an eye on the indicator in the second sub window and hold on to the position until it reaches a high and then closeout the long position.



The Rainbow Magic Trading System For MT4 – Short positions




In order to take a short position using the rainbow magic trading system, you will need to look at the indicator in the sub window. Here you will notice that the yellow line is moving below the thick blue line. This suggests that the market trend is to the downside. When you see this, the indicator will also change its signal and alerts you to a sell signal.

After you see the signal appearing, you should also look at the price action itself once you are confirmed that the market momentum is moving to the downside, you can then take a short position at market. We recommend that you set a pending short order near the recent swing low that formed while identifying the recent swing high and set your stop loss to this level.

You can now calculate your risk to reward ratio and set your take profit level accordingly. We also recommend that you leave a part of your open position search that it captures more profits when the trend is strong. In the second case, keep an eye on the indicator in the second sub window and hold on to the position until it reaches a low and then closeout the short position.



Is the Rainbow Magic Trading System For MT4 profitable?


The rainbow magic trading system in our conclusion is a trading strategy that can be ignored by traders. The reason behind this is because it makes use of indicators which do not work any longer. There for the moment you load this trading template, what you see is a bunch of alerts informing you of the expired indicators.

The trading template itself is rather heavy to load. Even when loading on one instrument, it can take quite a bit of time for the indicators to be loaded and for the charts to be displayed. Therefore, you can imagine if you load this trading template onto multiple charts at the same time. It will certainly freeze up your trading terminal for quite a long time.

Further to the above, we find that the choice of indicators used are also not that great. After all, most of these indicators are very custom indicators. It seems that the developer of this trading system has made use of some proprietary trading indicators for which the license has now expired. Therefore, there is absolutely no way for you to make use of this trading system unless you purchase the indicators that are available in this trading system. But even having said that, there is no guarantee that the indicators used in this trading system are worthwhile.

The rainbow magic trading system works on the 15 minute chart time frame only. Trader should note that every time there is a new tick, you will automatically get an alert. Therefore, it is nearly impossible to get rid of the popup alerts unless you manually set the alerts to false in each of the indicators. This makes absolutely no sense.

For the above reasons mentioned, the rainbow trading forex system is something that can be ignored by both beginners as well as professional traders. There is no real edge that you can get from the trading system as we have demonstrated in the above article. There are many more forex trading systems available out there which are consistent and works significantly better.

Download the complete system description and the files here:

FREE Rainbow Magic Trading System

Download the FREE Rainbow Magic Trading System for MT4.

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