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Trading system "Buylow"

       This system shows an example of a profitable and easy using the trend indicator FourAverage. Adaptability of indicator allows to get a stable result with relatively simple rules of the inputs and outputs out of the transactions. The system has an adaptive stop (stop is not bound for a clear number of items) to control the losses that allows the system to bring a steady income since 2000.

       The trading system is trying to buy at low prices and sell at the maximum. This leads to many small losses and big profitable trades. The system is designed for EURUSD H1, but at the adaptation of the parameters it can work on any financial instruments.
       The main advantage of the system is the small drawdowns, which allows you to start trading with a small deposit. For example, at the rules listed below, for confident trade enough $ 70.

       The development of this approach to trade will help beginners to start to develop their own, more complex systems because the used approach is the basis by many successful systems.

 

 Indicators required for system operation:


Setting indicators: EURUSD H1

FourAverage №1:

PeriodFA =2;
Average_1 = 0;
Average_2 = 0;
Average_3 = 30;
Average_4 = 70;

FourAverage №2:

PeriodFA =39;
Average_1 = 130;
Average_2 = 80;
Average_3 = 110;
Average_4 = 70;

Multi_Period_MA (moving average, built on data more a senior timeframe)

PeriodMA      = 5;
applied_price = 0;
timeframe     = 1440; 

PeriodMA      = 3;
applied_price = 0;
timeframe     = 1440;  

PeriodMA      = 2;
applied_price = 0;
timeframe     = 1440;  

PeriodMA      = 1;
applied_price = 0;
timeframe     = 1440;  


 

Rules opening a long position (BUY)

Moving averages for the previous day should line up in a row: MA1 <MA2 <MA3 <MA5. After that we are starting to look for an entry point on the indicator FourAverage №1. The indicator should cross the zero line from the bottom to the top and the candle with a positive value should be closed.

Open the long position, putting StopLoss on the lowest low of the previous two bars (a bar with a negative value FourAverage №1 and bar with a positive value)

Rules of closing the long position (BUY)

Moving averages for the previous day should line up in a row: MA4 <MA3 <MA2 <MA1.

Close long positions.

In fact, there are great opportunities for the modernization of the system, the use of all kinds of trawls, partial profit-taking, further holding the position...


 

Rules opening a short position (SELL)

Moving averages for the previous day should line up in a row: MA1> MA2> MA3> MA5. After that we are starting to look for an entry point on the indicator FourAverage №2. The indicator should cross the zero line from top to bottom and a candle with a negative value should be closed.

Open the short position, putting StopLoss at the highest high of the previous two bars (a bar with a positive value FourAverage №2 and bar with a negative value).


Rules closing a short position (SELL)

Moving averages for the previous day should line up in a row: MA1 <MA2 <MA3 <MA4.

Close the short position.

In fact, there are great opportunities for the modernization of the system, the use of all kinds of trawls, partial profit-taking, further holding the position ...


Example opening long position:

Пример открытия длинной позиции


Examples of transactions in the system BuyLow, indicators are hidden, the result is marked by a line:

Примеры сделок по системе BuyLow, индикаторы скрыты, результат отмечен линией

Примеры сделок по системе BuyLow, индикаторы скрыты, результат отмечен линией



Trading system "Buying low" addition №1

       Many users of the trading system noticed how often the system loses profits. In the system was added TakeProfit, which led to a review of all parameters. The results were strongly positive, the profit has become more and less drawdown.

       Testing was performed only on EURUSD H1, you can download freeware expert "BuyLow" and test various settings in other symbols and timeframes.

 

Setting indicators: EURUSD H1 to supplement №1

FourAverage №1:

PeriodFA =7;
Average_1 = 126;
Average_2 = 32;
Average_3 = 102;
Average_4 = 69;

FourAverage №2:

PeriodFA = 43;
Average_1 = 171;
Average_2 = 58;
Average_3 = 123;
Average_4 = 24;

 

 Multi_Period_MA (moving average, built according to a senior timeframe)

PeriodMA = 5;
applied_price = 0;
timeframe = 1440;

PeriodMA = 3;
applied_price = 0;
timeframe = 1440;

PeriodMA = 2;
applied_price = 0;
timeframe = 1440;

PeriodMA = 1;
applied_price = 0;
timeframe = 1440;


TakeProfit = 150 points