The strategy is based on the Martingale system and uses the
indicators, TEMA (in different time periods), ADX (14), RSI (14) and
MACD (12/26/9) to find a good entry point. To enter the market the
TEMA indicator in the 6 different periods, 1 min TEMA (70), 5 min
TEMA
(50), 1 hour TEMA (30), 4 hours TEMA (30), daily TEMA (15) and weekly
TEMA (7), must show in the same direction. When the current TEMA
candle value of all these 6 periods is lower then the last TEMA
candle
value, a short position is opened. At the same time, the following
control values must be observed: - In the 1 hour control period, the
current MACD (12/26/9) candle value must be lower then the previous
MACD (12/26/9) candle value. - The ADX (14) indicator in the 5 min
and
the 4 hours period must be beyond the value 20 - The RSI (14) value
in
the following periods must be higher the value of 20: 1 min period, 5
min period, 1 hour period, 4 hours period and daily period. For a
long
position, the logic is exactly the opposite. The strategy works in
the
EUR/USD currency pair with an initial trade amount of 0.5 million.
The
trade amount is changing proportional to the equity. The stop loss is
set to 25 pips and the take profit is set to 35 pips. After a
position
has been closed with loss, the following logic came to use. If the
last closed trading position was a long position and this position
was
closed with a loss and if one of the following TEMA indicators, 1
hour
TEMA (30), 4 hours TEMA (30), daily TEMA (15), weekly TEMA (7) are
going downwards, than a short position will be opened with the new
trade amount multiplied by the following logic:
- 1st Martingale Position - Trade Amonunt multiplied with 2.5
- 2nd Martingale Position - Trade Amonunt multiplied with 2.4
- 3rd Martingale Position - Trade Amonunt multiplied by 2.2
- 4th Martingale Position - Trade Amonunt multiplied by 2.0
- Each additional Martingale Position - Trade Amonunt multiplied by
1.8
If the last closed trading position was a short position the logic is
vice versa. Be advised to not use this strategy for live Trading.
It's
very
risky.
https://www.dukascopy.com/fxcomm/blog/?action=post-show&post_id=223241