[M15-D1] BAT ATR Strategy and Fibonacci Levels

mr_fanto

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Jul 4, 2012
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Name of the strategy:- BAT ATR and Fibonacci Levels
Year of release: 2016
Currency pairs: any (but not exotic) couples )
Timeframe: from M15
Trading time: around the clock
Description:
On the chart of the selected currency pair, set:
1) BAT ATR v2 Alert indicator with parameters ATRPeriod -5, Factor-4, BackPeriod-100000;
2) Fibonacci levels with the following levels:
- 0 – 0;
- 0.5-for a StopLoss order;
- 0.618-for a Limit order;
- 1 - for a pending Stop order;
- 1.382-breakeven level;
- 1.618-profit level 1;
- 2-profit level 2;
- 2.618-profit level 3.
Trading Strategy Rules
We conclude a purchase transaction provided that the following points are met:
1. The price breaks through the green line of the BAT ATR v2 Alert indicator, it changes its color to red and jumps under the price;
2. After closing the first candle after the breakout of BAT ATR v2 Alert, we build a Fibonacci grid-from point 1 to point 2 (the nearest local minimum);
3. Set two pending orders (equal to the lot-for example, 1.0) BuyStop 2-3 points above point 1 (level - " pending Stop orders”);
4. At the "Limit-order" level, set the order-BuyLimit (with the same volume – 1 lot);
5. Stop-losses for all three positions are placed 1-5 points below the "StopLoss" level.
6. Take-profits for each position are set to the following levels: Limit-order - to the profit level 1
and to the profit level 2 and 3, respectively, the second and third BuyStop orders.
7. As soon as the price reaches the " breakeven level“, we move all 3 orders to zero (i.e., to the purchase price – for the limit, this will be the level of point 3, and for BuyStop-to the level of point 1).
8. As soon as two orders were closed at the profit 1 and profit 2 levels, we transfer the stop loss on the third order to the profit 1 level.

Figure 1 shows the ideal option: 3 orders were opened – BuyLimit and 2 BuyStop, and all 3 were closed by TakeProfit. In fact, there are not always 3 orders open, sometimes there is no Limit Order involved, or it is closed by a stop loss (which is very small in this case).
If the price after breaking the level of the green line ATR does not roll back down to the close of the candle, and the next candle opens above the close of the “breakout candle” at point 1, you should make two deals to buy at the market price. This usually indicates a fairly strong uptrend and it is quite possible that the price will not return to the limit order.

For sales transactions, the conditions are reversed:
1. The price breaks through the red line of the BAT ATR v2 Alert indicator, it changes its color to green and jumps above the price;
2. After closing the first candle after the breakout of BAT ATR v2 Alert, we build a Fibonacci grid-from point 1 to point 2 (the nearest local minimum);
3. Set two pending orders (equal to the lot – for example, 1.0) Sell Stop 2-3 points above point 1 (level " pending Stop orders”);
4. At the "Limit-order" level, set the SellLimit order (with the same volume – 1 lot);
5. Stop-losses for all three positions are placed 1-5 points below the "StopLoss" level.
6. Take-profits for each position are set to the following levels: Limit-order - to the profit level 1
and to the profit level 2 and 3, respectively, the second and third SellStop orders.
7. As soon as the price reaches the " breakeven level”, we move all 3 orders to zero (i.e., to the selling price – for the limit, this will be the level of point 3, and for SellStop-to the level of point 1).
8. As soon as two orders were closed at the profit 1 and profit 2 levels, we transfer the stop loss on the third order to the profit 1 level.

The strategy is profitable. The indicator has alert settings .
 

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