Good day, dear readers of the magazine for traders ForTrader.org. Today we look at the trending forex strategy called Dynamic Gains System. This strategy has repeatedly been ironed in various forums, both in Russian and in English. If you look at the reviews of our foreign colleagues, then they are not quite bad about her, but in the Russian segment the strategy has not won confidence. Having studied our forums, I concluded that our trading society is extremely negative about free systems, arguing this with the proverb «Free cheese can only be in a mousetrap.» But no matter how skeptical we are, the system has a right to exist, so we proceed to a detailed analysis.
Input parameters
- Currency pairs: any
- Timeframe: Н1-Н4
- Trading time: round the clock
- Type of strategy: indicator, trend
Installing the forex strategy Dynamic Gains System
We install the trading system in a standard way. If you did everything correctly, then after starting the template, your terminal desktop should look something like this:
Indicators Used
Kijun-sen — the indicator is displayed as a gray line moving below and above the price. The Kijun-sen line crossing is one of the system’s signals. For those who are not in the know, Kijun-sen is one of the lines of the standard Ichimoku indicator. The parameter in this strategy is 26, like the standard Ichimoku.
Dynamic Gains — the indicator draws arrows to enter a position up or down. It is created on the basis of the usual moving average with a period of 3 (most likely, crossover prices and movings). Given the noise and the moving average period of 3, the arrow is redrawn as it pleases, from the slightest fluctuations, so that the signal of the indicator is perceived only by a closed bar.
ArZZx — the indicator is displayed in the form of gray triangles, and shows the direction of entry into the position.
Heiken Ashi Ma — this indicator draws candles in red or blue, is a modification of the standard Heiken Ashi indicator with the addition of a moving average function with a period of 1.
Daily open line — the indicator is displayed with a faint dashed gray line and shows the time and price of the opening day of the currency pair on the price chart.
Current trand index — displayed as a histogram in the three lower additional blue and red windows. This indicator is a regular Heiken Ashi, only rendered in an additional window to display the situation on a smaller timeframe.
Pivot td — the indicator draws pivot levels. It is necessary for setting stop loss and take profit.
Signals for opening a buy position
We open a buy position while observing the following conditions:
The price crosses the line of the Kijun-sen indicator from the bottom up.
The arrow of the Dynamic Gains indicator is directed up.
The triangles of the ArZZx indicator are directed up (personally, I think that this signal is not necessary, since it slows down the inputs).
Heiken Ashi Ma draws candles in blue.
Current trand index 30 is a blue histogram.
Current trand index 60 is a blue histogram.
Current trand index 240 — blue histogram.
Signals for opening a sell position
We open a sell position while observing the following conditions:
The price crosses the line of the Kijun-sen indicator from top to bottom.
The arrow of the Dynamic Gains indicator is directed down.
The triangles of the ArZZx indicator are directed down (personally, I think that this signal is not necessary, since it slows down the inputs).
Heiken Ashi Ma draws candles in red.
Current trand index 30 — red histogram.
Current trand index 60 — red histogram.
Current trand index 240 — red histogram.
Money Management Recommendations
Compliance with money management is a basic condition, without which no, even the most successful strategy will give you a steady increase in capital. I follow a simple formula: for one position, the risk should not exceed more than 2% of capital.
Criticism, personal observations
The Forex Dynamic Gains System strategy has proven itself for more than one year on the market, its indicators have become the basis of other systems and, in general, it has become a powerful framework for experiments. The trading system surprises with its ease and, at the same time, the meaningfulness of the selection of indicators. However, when working with the system, I found one significant minus. Almost all indicators are redrawn, as they say, a good wrapper for sale, but not at all in work. You can only enter a position with a closed bar! The arrow can appear and disappear five times within an hour, so you only need to wait for a clearly formed signal. Also, do not forget to back up your inputs with fundamental analysis, then you will not be afraid of any redrawing. Thank you for staying with us, and a fair trend, gentlemen.