complex forex trading strategies

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Page 1: Complex Forex Trading Strategies

Complex Forex Trading Strategies

Page 2: Complex Forex Trading Strategies

Complex Forex Trading Strategies

Trading in the financial market each year is taking new

forms. There appear new methods of market analysis,

theory and trading algorithms that contribute to

successful trading. However, certain principles and

trading systems are already in use for several decades and

help trading in the financial market.

Page 3: Complex Forex Trading Strategies

Complex Forex Trading Strategies

Let’s look on such complex systems:

-Turtle trading system;

-Elliott wave theory.

Page 4: Complex Forex Trading Strategies

Turtle Trading SystemTurtle trading system is a strategy that is based on level

breakthrough, which indicates the formation of a new trend.

The system doesn't "catch" turning points, but follows the

trend.

Page 5: Complex Forex Trading Strategies

Turtle Trading SystemTurtles" use a limited number of technical indicators:

- Donchian channel with a 10-day period;

- Donchian channel with a 20-day period;

- Donchian channel with a 55-day period;

- ATR.

Page 6: Complex Forex Trading Strategies

Signals to Enter the Deal

Deals are being opened on the fact of breaking through

Donchian channels.

Generally, there are two signs for transaction opening:

- Price pierces the 55-day channel;

- Price pierces the 20-day channel.

 

Page 7: Complex Forex Trading Strategies

Deal ExitDeal exit under the "Turtle" system is commited when the

junior channel was broken through in the opposite

direction of the senior. For example, if a deal is opened for

a 20-day channel breakthrough, the upper bound of a

10-day channel would be an exit position or a level of loss

restriction.

Page 8: Complex Forex Trading Strategies

Elliott Wave TheoryAccording to Elliott, the market moves in cycles which can

be visualized in the form of waves. A wave is a clearly visible

price movement. The market may be in one of two periods,

ascending and descending. In addition, Elliott divides the the

waves into impulse and correction ones.

Impulse wave. These waves comprise the price trend

movement, ascending or descending (waves 1, 3, 5, A, C);

Correction waves. These waves typically move against the

trend and have a shorter cycle (waves 2, 4, B).

Page 9: Complex Forex Trading Strategies

ConclusionThese strategies make it possible not only to predict the

price movement and understand the logic of its market

behaviour. Each of the complex trading systems is easily

applicable by a FIX API trader as well as by a trading robot.