Sidus Method Trading System For MT4
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 Sidus Method Trading System For MT4 is a dynamic trading strategy that uses market volatility to identify the potential trade setups. Since the system depends on the market liquidity, it is better to use this system to trade the stable pairs only. According to the inventor of this system, novice and intermediate traders should stick to the major currency pairs only. But those who have advanced knowledge on Japanese candlestick patterns can use this system to trade all currency pairs.
To reduce the noise in price movement, we will deploy this strategy in the 1 hour and 4-hour chart only.
The Sidus Method Trading System For MT4
Some of the rookie traders often think a complex trading system is the only way by which they can make a profit. This nothing but a myth in the Forex market.
The Sidus Method Trading System For MT4 is a simple trading strategy and provides a logical explanation to the retail traders regarding the potential reversal zone. The steps are easy to remember and with proper practice, the retail traders can easily evaluate the market data with the help of this system.
What are EMA and WMA?
EMA stands for Exponential Moving Average, and WMA stands for Weighted Moving Average. The EMA and WMA both focus on the most recent prices with only one exception. The WMA assigns a heavier weighting to the current data since they become more relevant.
Let's have a look at key indicators used in The Sidus Method Trading System For MT4:
- Exponential Moving Average (EMA) 18
- EMA 28
- Weighted Moving Average (WMA) 5
- WMA 8
After installing the necessary indicators, the chart looks like this:
The 18 EMA and 28 EMA will work as a channel. So, we can consider the top portion of the channel as resistance and the lower band of the channel as support.
To determine the direction of the trend, we will be relating the position of the price with the 18 and 28 EMA. For confirmation, we will evaluate the data with respect to WMA 8 and 5.
Sidus Method Trading System For MT4 Bullish Trade Setup
The Sidus Method Trading System For MT4 tends to work well in the H1 and H4 time frames. We will be avoiding the minute time frame just to reduce the noise in the price movements.
Bullish Trade Condition
- The price should be trading above EMA 28 and 18 (Red tunnel in the chart).
- WMA 8 and 5 should cross above the red tunnel.
The red tunnel will represent the long-term trend, and the WMA 8 and 5 will describe the short-term trend. If the short-term trend is stronger than the long-term trend, it is an indication to take the trade.
Entry
Execute the long trade as soon as WMA 5 and 8 cross above the red tunnel. If possible, look for the bullish confirmation candlestick. If you are not sure how to analyze the candlestick pattern, open the long trade after you have strong bullish closing in the 1 hour or 4-hour candle.
Stop Loss
Since the 28 EMA act as a strong support level, you can set the stop loss below the 28 EMA. Traders who have strong knowledge about the price action confirmation signal can set the stop loss below the bullish price action confirmation signal.
Take Profit
Usually, the take profit is set to the nearest resistance level. Traders who have strong analytical knowledge can close the trade manually after the bearish crossing take place in the EMA.
Sidus Method Trading System For MT4 Bearish Trade Setup
Like the long trade setup, look for a bearish trade setup at the major currency pairs.
Bearish Trade Condition
- The price should be trading below EMA 28 and 18 (Red tunnel in the chart).
- WMA 8 and 5 should cross above the red tunnel.
The red tunnel will represent the long term trend, and the WMA 8 and 5 will represent the short term trend. For better accuracy, you should be looking to take the short trade when the long and short term trend is bearish.
Entry
Execute the short trade as soon as WMA 5 and 8 cross below the red tunnel. Look for the bearish price action signal as it will give you a better opportunity to make a profit.
Stop Loss
The stop loss should be set above the 28 EMA as it acts as a strong resistance level. If you are good at using the price action confirmation signal, you can also set the stop loss above the 28 EMA.
Take Profit
For the take profit, you can identify the nearest support level. But if you want to ride the bearish trade, you can carry the trade till you get a bullish crossover in the EMA.
Sidus Method Trading System For MT4 Conclusion
The Sidus Method Trading System For MT4 is a simple strategy that uses the EMA crossover. But to improve your efficiency, you can learn the use of the Japanese candlestick pattern. In order to avoid the critical state of the market, you can also avoid taking the trades during the key news release. Try to maintain a minimum 1:3 risk to reward ratio while using this trading strategy.
If you are experienced at trading, we recommend you evaluate the trend in the daily time frame. After that, move to the H1 or H4 time frame and see if the long-term trend matches with the H1 and H4 time frame trend. By using this multiple time frame analysis technique, you can improve the accuracy of the trade execution process. But make sure you learn to use the multiple time frame analysis in the demo account so that you don't have to risk any real money.
We suggest to trade a new trading system on a demo account for at least a few weeks. This will help you to learn the system without risk of losing money. Later you can switch to a real money account.
Download the complete system description and the files here:
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