Lucky 5 Strategy - Forget Stop Losses!
Hello, friends! As you know, a typical newcomer to forex throws a strategy after 3 stop losses in a row. But what if we exclude the triggering of stop loss in the trading system, if not completely, then as much as possible? What if you trade according to a strategy, transactions on which are closed in plus in more than 70% of cases? It is this strategy that the system Lucky 5, which we will analyze in detail today.
Characteristics of the Lucky 5 trading system
Platform: Metatrader 4
Currency pairs: EURJPY, GBPJPY, as well as any pairs with high ADR
Timeframe: optional, optimal M15
Trading Time: Frankfurt, London Session and the Beginning of the American
Recommended DC: Alpari, GKFX
Attention! So that the terminal does not get buggy and everything works, you must first install the TS template on a chart with a D1 (Daily) timeframe, and then change the timeframe to H4, H1 and, finally, M15.
This is due to the features of the new MT4 builds.
Lucky 5 Strategy Benefits
- No lagging indicators, simple logic
- Trading intraday without sitting out hours behind the monitor - the analysis will take you 3 minutes per hour.
- Over 70% of transactions are profitable
- Simplicity, even a beginner can deal with the system
- Automatic control of open orders using auxiliary advisers
Lucky 5 Strategy Concept
The basis of the strategy is very simple - it is working out impulses at round price levels with filtering by higher timeframes, a trailing stop and moving to breakeven.
Entry and Exit Rules
- Once per hour we place pending orders for price 00, 0.1, 0.2, 0.3,0.4, 0.5, 0.6, 0.7, 0.8, 0.9
- We trade only in the direction of the candle D1
- We enter only if the last candle H1 coincides in direction with D1
- We start trading with the opening of Frankfurt, we finish 2 hours after the opening of New York
- At the opening of Frankfurt, we trade only the levels 0.4, 0.5, 0.6
- Do not sell at 0.1 and Do not buy at 0.9
- Take profit 5 points, stop loss 10 points
- We transfer the position to breakeven after 3.5 points of profit. Also at the level of 3.5 points trailing stop is included. Control is performed automatically with the help of advisers - see video
- There must be at least 10 points to the borders of ADR
- Do not trade one hour before and half an hour after the release of important news
- The goal is 10 points per day, then we stop trading (advice of the author of the TS)
- If the price has already passed adr, no longer trading on this day
- We trade only the first intersection of the level!
Forex strategy Lucky 5 offers us a very interesting approach to work inside the day, focusing solely on logic. The pluses can also include a small amount of time needed for analysis, because orders are placed once an hour, and then controlled automatically. Of the minuses of the system, it is worth noting the high stop loss in relation to take profit. However, this point is offset by a high percentage of profitable trades, as well as auto-transfer to breakeven and a trailing stop, minimizing the triggering of full-sized stop loss.