Simple Price Based Forex trading strategy — an exciting strategy developed by one of the good Forex traders recently. It works for any mt4 pair (though EUR/USD is recommended) and in all mt4 market conditions. No other indicators are required to trade using this strategy. All you need is the ability to set up the chart pending orders.

Price-Based Forex Trading Strategy Features

• Position-based forex trading for any state of the market.
• Trailing stop protects profit.
• Lack of statistical proof.

How to Trade?

1. A higher timeframe chart is recommended as each trading setup requires some calculations based on the latest bar.
2. You should calculate The key number first. It’s based on the current Price. For the quotes with four digits after a dot, the critical value is the current Price multiplied by ten and then rounded. For the quotes with two digits after a dot, the key value is the current Price divided by ten and the rounded.
3. Putpending Buy order at Current Price + (2 × Key value).
4. Put pending Sell order at Current Price − (2 × Key value).
5. Put stop-loss for pending Buy order at Open Price − (2 × Key value).
6. Put stop-loss(SL) for pending Sell order at Open Price + (2 × Key value).
7. Take-profit(TP) for both orders is calculated similarly to the key value, but the current chart Price should be multiplied by 100th for the quotes with four digits after a dot and shouldn’t be divided for the quotes with two digits after a dot. In both cases, the values have to be rounded.
8. Trailing stop(TSL) is also applied to the orders and is set to 2.5 × the main value.
9. Don’t forget to cancel the untriggered entry orders after the timeframe period ends.
10. If this sounds complicated, see the example below.

Example

Let’s calculate the chart entry conditions and parameters for an example presented on the chart:

1. It’s a EUR/USD H4 chart.
2. The current Price is 1.1202, and the current bar’s open Price is 1.1209.
3. There are four digits after a dot in the quotes for EUR/USD. That means the Key value is calculated as 1.1202 × 10 = 11.2. Rounding it results in 11 pips.
4. Pending Buy trade level is calculated as 1.1202 + (2 × 11) = 1.1224.
5. The Pending Sell order level is calculated as 1.1202 − (2 × 11) = 1.1180.
6. Stop-loss for a pending Buy trade is calculated as 1.1209 − (2 × 11) = 1.1187.
7. Stop-loss for pending Sell trade is calculated as 1.1209 + (2 × 11) = 1.1231.
8. Take-profit for all pending trades is calculated as 1.1202 × 100 = 112.0 or, after rounding, 112 pips.
9. Take-profit(TP) for pending Buy order is set to 1.1224 + 112 = 1.1336.
10. Take-profit for a pending Sell order is set to 1.1180 − 112 = 1.1068.
11. The trailing stop for both orders is set to 2.5 × 11 = 27.5 or, after rounding, 28 pips.

Read More Winning 100 pips a day with MT Forex Mobile Strategy

Credits

The Forexkid originally developed this trading strategy. The version presented here has some modifications.

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Discussion:

Do you have any questions or suggestions regarding this strategy? You can always discuss the Simple Price Based Trading System with your fellow Forex traders on the Trading Systems and Strategies forum.