Business & Investment

Trend Channel Strategy-Trading Systems-October 11, 2021

NS Casual channel Or “random walk channel” RWC Indicators are a breakthrough technology in trading, far surpassing all existing indicators without exaggeration.

According to statistics, most traders lose money. And there is even an unfounded opinion that a successful transaction is a coincidence, and a “successful” trader is someone who has not yet been able to “exhaust” deposits. But then the question arises: “In general, is it possible to make consistent profits on the stock exchange? If so, how?” I will answer the first part of this question immediately, you can make money consistently on the stock exchange. However, in order to understand how to do this, intellectual effort must be spent to achieve the following non-trivial understanding.

The trends displayed on the chart are not always trends. More precisely, it’s a trend where you can make money. The point is that there are two types of trends: 1) True trends Being stable, it is caused by basic economic reasons that can provide traders with credible profits. 2) And there is Wrong trend section It looks like a trend and is caused by a chain of random events-moving prices (mainly) in one direction. These false trend sections are short and can be reversed at any time (and, in principle, immediately after identification). Therefore, it is impossible (not accidentally) to make money with them. Visually correct and incorrect trends are initially indistinguishable. In addition, random price fluctuations or the false trends they generate are always superimposed on the true trends, especially the setbacks of the true trends that need to be identified and distinguished from the reversals caused by new root economic causes. It can cause it.

The casual channel indicator distinguishes between these two types of trends by plotting a random walk channel of prices... If you attach this indicator to a currency pair chart, as a rule, these charts are completely within the random walk channel, in which many (but not all) trend sections are false. At the same time, the price moves from one channel boundary to another channel boundary simply by touching the channel boundary.If installed Casual channel Indexes, CFDs, or long time frame stock charts show that in some cases those quotes for a sufficiently long period are outside the random walk channel, that is, above the uptrend channel and below the downtrend. increase. .. In these cases, there is a real tendency, the higher the chart, the higher the upper line or the lower line. Casual channel Indicators show a strong true tendency that can be considered identified if the chart follows almost one of the indicator lines.

StopLoss should be placed in the row below the indicator when opening a buy position on a true uptrend, and StopLoss should be placed in the row above the indicator when opening a sell position on a downtrend. In this case, imposing an incorrect trend section or random price fluctuations on a true trend that appears as a rollback will not trigger StopLos. This only works if the trend reverses. However, the CFD trend grows very slowly, and this growing pullback, in principle, far exceeds the growth itself. This makes a purely trending strategy low-profit and high-risk.

The indicator has built-in cash management capabilities that allow you to calculate lots to play with trends based on StopLoss lines, deposits, and selected risk levels. You can use the same lot value to replay in-channel variation from one line to another. However, playing within the channel is not recommended as the inside of the channel is filled with a purely random process. This process does not have to follow exactly from one indicator line to another, but it moves from one line to the channel and again.

Special for reliable games in currency pairs Trend channel strategy Was developed, but its essence is as follows:

If there is a trend in the shorter time frame (opening a position), the price moving from the channel boundary towards this trend in the longer time frame will probably reach the moving average of this channel. Set the take profit. If the price of the large time frame following the trend set in the short time frame deviates from the moving average along the trend, it reaches the opposite boundary of the large channel. Random walk channel boundaries are calculated very accurately. In fact, establishing a real trend in a shorter time frame ensures that prices that move away from the channel boundary in a longer time frame along this trend reach the opposite boundary. This is the essence of the trend channel strategy to solve. Profitable exchange game issues.

Indicator settings..

  • Average period.. value –NSny positive integer (60 default).
  • Calculate lot size from risk, deposit, Stop Loss?? value: NS, NS..
  • Allowable loss from free margin (%) .. value: От0до100 (2.0) default).

screenshot.

Click on the chart to see the dynamics price fluctuations

Click on the chart to see the dynamics price fluctuations

Can be downloaded or purchased Casual channel Next indicator Link..

Trend Channel Strategy-Trading Systems-October 11, 2021

https://www.mql5.com/en/blogs/post/746217 Trend Channel Strategy-Trading Systems-October 11, 2021

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