Sidus Method V 2 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 V 2 Trading System For MT4 is mostly used in the H1 and H4 time frame. In this trading strategy, 3 Exponential Moving Averages are used along with the Relative Vigor Index. The inventor of this system suggests using this strategy during the opening hours of the trading session. And try to use this system to trade the major and minor currency pairs.
The Sidus Method V 2 Trading System For MT4
In this trading strategy, two Exponential Moving Average is used to understand the market trend. The slope of the EMA 18 and 28 is analyzed to determine the direction of the trend. An ascending slope suggests a bullish rally in the market whereas a descending slope suggests a bearish trend.
The major difference between the Simple Moving Average and the Exponential Moving Average is that the Simple Moving Average (SMA) focuses on the average price without emphasizing the most recent changes. On the other hand, the Exponential Moving Average (EMA) focuses on the most recent movement. So, with the help of this system, we can quickly anticipate the direction of the trend even though we have a sharp change in the trend.
Let’s have a look at the key indicators used in The Sidus Method V 2 Trading System For MT4:
- Exponential Moving Average (EMA) 18
- EMA 28
- Relative Vigor Index (RVI) 100
The EMA 28 is responsible for providing the core direction of the major trend. On the contrary, EMA 18 will be used to determine the retracement phase and potential entry zone. The RVI index is used to determine the quality of the trade signals.
RVI is generally used to measures the trend's strength by considering the closing price for a specific range. So, the reading from the RVI indicator will act as a strong metrics while analyzing the probability of success. If the RVI reading is not satisfactory, we will be ignoring the trade signals.
Sidus Method V 2 Trading System For MT4 - Bullish Trade Setup
The Sidus Method V 2 Trading System For MT4 works well in major and minor currency pairs. However, we can use this trading strategy to trade stocks and indices. But for that, we must make ourselves comfortable by trading the major and minor currency pairs in the real market.
Though the strategy works well in H1 and H4 timeframe, we can use this system to trade the daily chart. But in this case, we have to be careful about the major economic announcement. It is better not to trade the in the daily chart during the event of high impact economic news release like NFP, ECB press conference, interest rate decision, etc.
Bullish Trading Conditions
- The price should be trending higher making new highs.
- EMA 18 should crosses above EMA 28, indicating that the establishment of the bullish trend.
- The Blue RVI signal line should cross above the Red RVI signal line.
- After the RVI crossover, we need a bullish candle.
Entry
After checking the 4 conditions, we can execute our long trade. But we must not take a high risk expecting that we will definitely win. Nothing is certain in the Forex market.
Stop loss
We can use the most recent swing low to determine the stop-loss price.
Advanced traders can use the price action signal to execute the trade with a tight stop.
Take Profit
There is no specific take profit level for this trading strategy so you can hold the trade as long as possible. But while using this technique, you have to trail the stop loss smartly.
If you feel uncomfortable with the trailing stop loss, you can use 1:3 risk to reward ratio to determine the take profit level.
Sidus Method V 2 Trading System For MT4 - Bearish Trade Setup
The bearish trade setup in The Sidus Method V 2 Trading System is very similar to the long trade setup. In this case, we also need to check for conditions.
Bearish Trading Conditions
- The price should be trending lower making new lows.
- EMA 18 should cross below EMA 28, indicating that the establishment of the bearish trend.
- The Blue RVI signal line should cross below the Red RVI signal line.
- After the RVI crossover, we need a bearish candle.
Entry
Execute the short trade after checking the 4 conditions. Avoid opening any trade prior to the high-impact news release. Note that the market becomes extremely volatile and unstable right after such major economic news.
Stop loss
We can use the most recent swing high to determine the stop-loss price.
Advanced traders can use the price action signal to execute the trade with a tight stop.
Take Profit
Since there is no specific take profit level for this trading strategy, you can hold the trade as long as possible. But while using this technique, you have to trail the stop loss smartly.
If you feel uncomfortable with the trailing stop loss, you can use 1:3 risk to reward ratio to determine the take profit level.
Sidus Method V 2 Trading System For MT4 - Conclusion - Trade Management Idea
The Sidus Method V 2 Trading System For MT4 is can generate decent trade signals provided that you are using the key steps of this system in an organized way. To improve your trading efficiency, try to follow the below-mentioned rules.
- This trading system often creates false signals. Therefore, you should use your knowledge and experience to determine the confirmation. If possible learn about the price action signals as it will give you better exit points for each trade.
- Do not take any trades without stop loss. Try to set the stop loss in a logical place.
- There is no assurance you will money from a certain trade signal. So, limit your risk by using 2-3% risk exposure in each trade.
- Try to maintain a trading journal so that you can identify the weakness in your performance.
Please note that you should always use a demo account when you learn a new trading strategy. This will help you to avoid financial losses during the learning curve which comes with every new trading system. On a real money account we suggest a conservative money/risk management where you should not risk more than 1% of your trading capital for each trade.
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Partially Automated Trading Besides Your Day Job
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