Strategy Cash Cow
Forex Cash Cow Strategy
Forex Strategy Cash Cow is designed to trade on the currency pair GBPUSD and is based on the rule that if the price was within the trading day in the same direction at least 140 points, then this motion can be called the "explosion" and this trend in the market tends to continue even during the next trading day or 2 days. And so 140 points in one direction - the most important rule of this strategy!
If the last number of points less than that, this movement is the usual intraday price swing that does not have a required sign of a strong trend movement in the market. Not every day, the currency pair GBPUSD is in the same direction at least 140 points in 24 hours. Such movements occur about 6-7 times within a month. And these movements are entirely correspond to one of the known rules of trading: "is less common than the market price is either a pattern, the more likely that it will be profitable".
Once we found " price explosion" on the market, go to step number 2. On the next trading day, we need to wait for the moment when the price will be at least 70 points in the direction of our "price explosion", and only after this condition will open a trading position!
Immediately after entering the market, we place safety stop-loss at 60 pips from entry into the market . Exit out of the market for take-profit at 100 points, or time - 11:30 GMT on the next trading day. Also, for greater certainty, at the opening of trading positions can be set a trailing stop at a distance of at least 40-50 points.
find on the daily chart of the day, which happened to move at least 140 points. In Figure 2 you can see more detail, the 5-minute price chart the same movement in the market.
now a necessary condition number 2 - on the next trading day, the market should take another 70 points in the same direction as the "explosion prices." And the picture number 3 we see what happened on the next trading day.
condition is satisfied, and we open a trading position on the sale and immediately place a safety stop-loss order at 1.7502 (60 pips away from the entrance), on the desired profit target is located at 1.7432 (100 pips from the entry into the market ).
As we can see the price reach our profit targets in the same trading day.
Risk - Management: in forex trading should ALWAYS keep a very important rule of trading - we should never take risks in the transaction more than 2-4% of the deposit. Maximum of 5% - if you believe in the trading position and it is confirmed by numerous trade signals.
Only in this case, you can stay in the forex market for a long time and always make whether by advisers or when trading in your hand!