Trading Strategy

Here goes-
EUR/USD - 4Hr chart.

Long-
Buy set up is the RSI(21) rising above 50 on a closing basis.

Enter a Buy Stop at the high of the bar that caused the RSI cross above 50 + 15% of the Daily ATR(21).

(15% of the Daily ATR on EUR/USD will be around 15 pips.)

The Stop Loss will be the entry price - 30% Daily ATR(21). (About 30 pips) OR a signal to go short.

Add another lot when the RSI crosses above 60 on the close.
The Stop Loss for this second lot is the RSI falling below 50.

Close half the trade when the RSI crosses above 70 and then falls back below it.

The Stop loss for the remaining half of the position is a signal to go short OR the RSI falling below 40.


Short
Sell set up is the RSI(21) falling below 50 on a closing basis.

Enter a Sell Stop at the low of the bar that caused the RSI cross below 50 - 15% of the Daily ATR(21).

(15% of the Daily ATR on EUR/USD will be around 15 pips.)

The Stop Loss will be the entry price + 30% Daily ATR(21). (About 30 pips) OR a signal to go long.

Add another lot when the RSI crosses beliw 40 on the close.
The Stop Loss for this second lot is the RSI crossing above 50.

Close half the trade when the RSI crosses below 30 and then crosses back above it.

The Stop loss for the remaining half of the position is a signal to go long OR the RSI rises above 60.

© Help for New Traders