Trade Assistant Trading System For MT4

Trade Assistant Trading System For MT4

 

Table Of Contents:

  1. Trade Assistant Trading System For MT4
  2. Indicator Used and Time Frames
  3. Trading Strategy
  4. Long entry
    1. Stop Loss and Take Profit
  5. Short entry
    1. Stop Loss and Take Profit Settings
  6. Conclusion

 

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 Trade Assistant Trading System for MT4 is a trading strategy which can be deployed for day trading as well as for swing trading. It can be deployed on several assets and currency pairs. The aim of the strategy is to catch the swings of price movement and to alert the trader as to the various points within the swing that could serve as resistance and support targets.


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Indicator Used and Time Frames

 

This strategy uses the Trade Assistant Indicator as the primary indicator. The secondary indicator is the Pivot Point calculator. These two indicators work in tandem to ensure that entry and exit points within the swing move can be picked up and used to set trades.

The Trade Assistant indicator is the momentum indicator. It lies in its own window below the chart window and generates visible signals that are marked as “BUY” or “SELL”. These signals occur in sequences of 8. The number of times this signal appears indicates whether the trader can buy or sell the asset.

The pivot point calculator is an indicator which automatically plots pivot points on the chart, using the previous day’s high, low and close prices. Due to the fact that these prices change from day to day, these pivot points have to be recalculated every day. The indicator then connects the new pivots with the corresponding existing pivots, allowing the trader to have an idea about where historical pivot points are located.

Time frames suited for this strategy are the M30, H1, H4 and daily time frames. Each of these time frames have different execution parameters, which will all be discussed in this article.


Trading Strategy

 

Each of the signals generated by the Trade Assistant occurs in sets of 4. You have the Sell signals, shown in red, and you also have the Buy signals shown in green. There have to be at least 3 out of 4 signals showing the Sell or Buy. Each of the signals shown on the Trade Assistant window also has arrows attached to them. The arrows may be pointing downward, upward, sideways, or diagonally upward or downward.

 

  1. For the M30, H1 and H4 Time Frames

 

There must be 3 out of 4 signals that indicate Sell or Buy on the time frame between the current one and higher. For instance, if you want to trade off the M30 time frame, the M30 and H1 time frames must BOTH show at least three out of four instances of buy or sell signal stamps on the indicator window of the Trade Assistant.

 

  1. For the Daily Time Frame

 

There is no higher time frame to reference. Simply look for three out of 4 instances of a Buy or Sell stamp, then execute the signal at the open of the new daily candle.

 

  1. Long entry

 

Here are the long trade setup parameters.

 

    • Allow the Trade Assistant indicator to show three out of four BUY signals on both the current time frame and the time frame that is immediately above it.

    • At the same time, buy at the open of the candle if this price level is at or just above a pivot point. It does not matter if it is a support or resistance pivot. If price was above the pivot and pulled back to the pivot when the signals came in, this is probably the best it can get for a bullish trader.



The chart here is a 1-hour chart and the trader has to search the 1-hour chart and the 4-hour chart to see if there are at least three BUY signals. Indeed, these parameters were met and the trade was instituted at the appropriate pivot point, where the candle’s open price was just above the pivot in question.

Stop Loss and Take Profit

Set the Stop Loss below the pivot point where the trade was taken.

The Take Profit price level should be placed below the pivot point that is located above the pivot point where you made your trade entry. That is the first target for risk-averse traders. Risk tolerant traders can close half the trade position manually when the price hits the target, then the SL can be adjusted to the breakeven point (i.e. the entry price) and a trailing stop applied to the chart to chase the rest of the price advance, if indeed price has enough momentum to get to the next pivot point in the line of the trade, as shown in the chart above.

 

  1. Short entry

 

Here is what to look out for when seeking to go short using the Trade Assistant trading system.

 

    • Allow the Trade Assistant indicator to show the SELL signal in at least three out of 4 signal stacks. This should occur on the current time frame of the chart and a higher time frame (except if the time frame is the daily time frame, which has no higher referencing time frames).


    • If the price candle has just been rejected at a pivot (i.e. comes from below the pivot and finds resistance at the pivot), you can go short at that pivot.

 

The chart below shows what the trade setup looks like. This chart was the M15 chart. Therefore, both the M15 and M30 time frames should be viewed to see if the signals generated by the Trade Assistant indicator features at least 3 out of 4 Sell signals.



Here, we can see that the 15-minute and 30-minute time frames show 4 out of 4 sell signals, with 4 arrows all pointing downwards. These are the most powerful sell signals possible, and we can see how the price action collapsed from the sell trade entry point.

 

Stop Loss and Take Profit Settings

The SL should be set at a few pips above the pivot point where you performed the trade entry.

The Take Profit setting should be set a few pips above the pivot point located below the trade entry pivot. In all instances, make sure that the trade is such that at least three pips can be sought in the profit expectation for every one pip that has to be risked as a stop loss.

 

Conclusion

This strategy can be enhanced if candlestick patterns are added to the mix, allowing the trader to study trader behavior at the pivot points and use these as the benchmark to set trades that have a greater chance of success.

Download the complete system description and the files here:

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