Good day, dear readers of the magazine for traders ForTrader.org. Today we will analyze the Forex strategy of the Daily and Weekly Open Trading System, but not with standard entry points, as presented in the classic version of the system, but as suggested by one of the traders at one of the foreign forex forums. Why in this particular version? Yes, because the author led a whole branch and proved that this option of using the Forex strategy of the Daily and Weekly Open Trading System is more profitable. Unfortunately, I can’t give a link to the forum thread, as this forum no longer exists). But take my word for it, the system is worth attention, both in the classical version (I will briefly mention it) and in the version that will be described below.
Input parameters
- Currency pairs: any
- Timeframe: Н1-Н4
- Trading time: round the clock
- Type of strategy: trending, indicator
Installing the Forex Strategy Daily and Weekly Open Trading System
The Forex strategy of the Daily and Weekly Open Trading System is installed in a standard way. Your terminal desktop should look like this:
Indicators Used
The trading system consists of 12 indicators, six of which affect the decision-making on entering a position, another one is responsible for money management. All the rest are informers. Now briefly for each:
HApro — this indicator is a modified version of the Heiken Ashi indicator; it looks like red and blue candles with up and down arrows. Arrows appear when the color of the Heiken Ashi indicator candle changes in the opposite direction. In the settings you can set the period of the moving average, as well as the number of bars, on the basis of which the indicator is calculated.
THV Coral — this indicator is displayed as a line of red and blue. The indicator was pulled from the famous THV system and created on the basis of a simple moving average. In the Forex strategy of the Daily and Weekly Open Trading System, the indicator acts as a filter: the blue line — only buy, the red — only sell. In the settings, you can change the period of the moving average depending on your preferences, and also enable sound notification when a trend changes.
Daily and Weekly Open — the indicator draws two lines with a dashed line in red and blue. The blue line is formed at the opening price of the day, the red — at the opening price of the week. In the system, this indicator plays the role of the signal, since its crossover (price crossing) forms the entry point.
Trend combo and Trend scaner — these two indicators are connected in the first additional window, displayed as green and red lines (one as a histogram, the second as columns) and act as filters.
Fs30 — the indicator is in the second additional window, in the form of a line of red and green. This indicator is a modification of the standard RSI oscillator. In the settings you can specify any period that suits you.
Strenght — this indicator is in the third additional window and displays the strength of the trend on the main currency pairs. In the settings you can set the number of bars based on which the calculation will be made.
LotCalculator — this indicator is in the fourth additional window. He is an assistant to comply with the rules of money management.
Signals for opening a buy position
We enter the buy position while observing the following conditions:
- The HApro indicator is colored blue (blue candles).
- The THV Coral indicator line is blue.
- The price crosses the line of the Daily and Weekly Open indicator from the bottom up.
- The bars of the Trend combo and Trend scaner indicators should be green.
- The indicator line Fs30 (RSI) should be green.
Some indicators are redrawn, so we enter a closed bar.
Signals for opening a sell position
We enter the position for sale while observing the following conditions:
- HApro indicator is colored red (red candles).
- The THV Coral indicator line is colored red.
- The price crosses the line of the Daily and Weekly Open indicator from top to bottom.
- The bars of the Trend combo and Trend scaner indicators should be red.
- The indicator line Fs30 (RSI) should be red.
Some indicators are redrawn, so we enter a closed bar.
Money management
In terms of money management, the author competently thought out and implemented the LotCalculator indicator. This indicator calculates the lot depending on the percentage of risk per position. In order for the indicator to calculate the lot correctly, you must go into its settings and indicate the number of points in the Stop Loss column. In the working window of the LotCalculator indicator, a lot will be displayed, which is recommended to enter a position. By default, the risk per position is 3%.
Personal opinion of the author
For a very long time I came across the Forex strategy of the Daily and Weekly Open Trading System and, judging by the analysis of its work on historical data, I can only give a positive assessment. The system is built on the basis of breaking through an important level (the opening price of the day and week) plus a competent filter. Also very pleased with the indicator-calculator, with which you can quickly calculate the lot (especially useful for beginners). In the standard system, the level indicator is simply thrown out, and the input is carried out by arrows. But since the arrows are redrawn, I don’t like this option, and I propose an alternative method of entering the market. Both the beginner and the experienced trader can cope with the Forex strategy of the Daily and Weekly Open Trading System. Thank you for your attention and the associated trend!