Hi Everyone,
I have developed a trading strategy that is based on multi time frame pivot points. I have developed it into an EA as the strategy trades on time frames from M1 to MN1, uses a trailing stop and dynamic stop losses so it easier to use the EA rather than manually trade.
Basically the strategy works on the basis that is the price is above the daily pivot point then the price is going to go up for that day, and if the price is below the pivot point then it will go down.
But instead of using the daily PP, I use the monthly, weekly, daily, 4hr, 1hr, 30min, 15min, 5min & 1min, pivot points.
If the price is above the PP for all time frames, then you have a strong up trend, and if it below all the PPs then you are in a down trend.
So, now you have a basic background to the strategy, here is exactly how it works, and you’ll see why I use an EA for it.
[B]Trade Opening[/B]
[B]Buy[/B]
The current price should be above the pivot points on all time frames, then it is BUY.
[B]Sell[/B]
The current price should be below the pivot points on all time frames, then it is SELL.
[B]Stoploss[/B]
As soon as the trade is opened, the initial stop loss is twice the previous days ATR.
This is also a trailing SL, for every pip the trade moves in the direction of the trade, move the SL the same number of pips.
[B]Take Profit[/B]
None, it’s a trend following strategy aiming to get as many pips as possible in the trend.
I keep all trades open for 24 hours. After 24hours, if the trade is still trending in the direction of the trade keep it open until it stops trending. By this I mean if you have a buy trade open for 24 hours, and the price is above the monthly, weekly and daily PP, then it is in trend.
If the trade is open 24 hours, keep it open and only close it if the price has retracted past [I]either[/I] the monthly, weekly or daily PP. Depending on how strong the current trend is, this could be open for a few days, which is why we have the trailing stop as well.
I also close all trades on a Friday afternoon @ 18:00GMT.
As pivot points are exact numbers, there is no guess work needed for this strategy.
Hopefully I have explained everything, if not let me know.
Also, let me know what you think.