Trading system "Double control"
Trading System "Double Control" is the most simple system based on the newest trend indicator FourAverage. This system was developed by one of the first in testing FourAverage indicator and is an excellent example of the abilities of this indicator to predict of price series.
The system of "double control" for the EURUSD, H1
The system includes:
FourAverage indicator with the parameters (sensitivity indicator or a first indicator):
PeriodFA = 24; Average_1 = 200; Average_2 = 21; Average_3 = 114; Average_4 = 83;
FourAverage indicator with the parameters (Verification indicator or the second indicator):
PeriodFA = 24; Average_1 = 158; Average_2 = 59; Average_3 = 95; Average_4 = 102;
Rules for opening positions:
- If the first indicator changes its values from negative to positive (you must required to wait for the closing of the current bar), and the second indicator is greater than zero, then we open long (Buy) position.
- If the first indicator changes its value from positive to negative (you must required to wait for the closing of the current bar), and the second indicator is less than zero, then we open short (Sell) position.
Rules closing positions:
- If the first indicator assumes negative values, we close long (Buy) position.
- If the first indicator takes positive values, we close the short (Sell) position.
Capital management: basic property of this system is the small number of consecutive losses, so for getting a permanent income we will increase the volume of positions on 1.4 after losing trade. After profitable trade we back to the original lot. When working on a standard accounts an initial lot size is 0.01 for every $ 500 (in no case, it is not recommended to increase the size of the lot without the presence of an adequate supply of money).