Trading strategy-Slingshot

A very simple trading system that uses exponential moving averages EMA with a period of 10. This trading system has been tested only for two currency pairs.

Pairs for trading

-EUR/USD

-EUR/CAD

Chart setup.

Time interval: 1-hour candlestick chart.

- EMA with a period of 10 at maximum prices.

- EMA with a period of 10 at minimum prices.

- EMA with a period of 10 at closing prices.
 
Rules for long positions.



1) Buy one lot when the price closes below 10EMA at the high prices, but above 10EMA at the closing prices. The previous candle should close above 10% at the prices of the highs.



2) we place a Stop on this lot at the level of 10% at the minimum prices.



3) If we have already opened a long position on one lot and ONLY if the price closed above 10% at the maximum prices, we add two additional lots, each separately. Now we are working with three lots.



4) Move the stop on the first lot to the break-even level.



5) Stop on the second lot is placed AT 10% at closing prices.



6) we place a Stop on the third lot at 10 EMA at the minimum prices.



7) this strategy does not use limit orders, positions are closed only when stops are triggered. We transfer lots 2 and 3 when moving 10EM at closing prices and 10EM at minimum prices. When 10EMA at minimum prices reaches the break-even level for the first lot, we also begin to adjust the stop for the first lot at 10EMA at minimum prices. I.e. from this point on, we move the stops for lots 1 and 3 at 10EMA at minimum prices and for lot 2 at 10EMA at closing prices.
 
Rules for short positions.



1) Sell one lot when the candle closes above 10EMA at the minimum prices, but below 10EMA at the closing prices. The previous candle should close at 10% at the prices of the lows.



2) the Stop for this lot is placed AT 10% at the maximum prices.



3) If we have already opened a short position and ONLY if the price closed below 10% at the minimum prices, we sell two more lots separately. Now we have three lots.



4) Move the stop on the first lot to the break-even level.



5) Stop on the second lot must be placed at the level of 10% at closing prices.



6) Stop on the third lot must be placed AT 10% at the maximum prices.



7) this strategy does not use limit orders and all positions are closed only when stops are triggered. We move stops for lots 2 and 3 after 10EMA at closing prices and 10EMA at high prices, respectively. When 10EMA at maximum prices reaches the break-even level for the first lot, the stop for the first lot is also transferred to 10EMA at maximum prices. I.e. from this point on, the stops for lots 1 and 3 are transferred after 10EMA at maximum prices, and the stop for lot 2 is transferred after 10EMA at closing prices.
 
Example of a Slingshot Strategy for a long position.











Notes:



1) we buy one lot on a red candle that closed under 10EMA at high prices, but over 10EMA at closing prices. The previous candle closed above 10% at the prices of the highs, i.e. all the entry rules were met. We place a stop at the level of 10% at the prices of the lows.



2) Buy two more lots, as the price closed above 10% at the prices of the highs. Now we hold three lots. Moving the stop on our first lot to the break-even level. Stops for lots 2 and 3 are placed at 10EMA at closing prices and at 10EMA at minimum prices, respectively.



3) Our second lot was closed on the stop with a loss of 8 pips, as the price reached 10% on the closing levels. At this point, we have 2 lots left. Since the minimum price EMA crossed the break-even level for our first lot, we are now moving the stops for lots 1 and 3 TO 10% at the minimum prices.



4) Lots 1 and 3 were closed in the footsteps with a profit of 78 and 55 pips, respectively.
 
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