OVERALL

STRATEGY 

  1. 3 Models: Price Chanel, Pivot, Price Action.

  2. Those models are used with the following strategies: Breakout, Momentum, Mean Reversion.

  3. Trades are triggered using Limit/Stop and Market Orders.

  4. All Trades are protected with a Stop Loss. There are NO dangerous methods of money management such as Hedging, Martingale, or Grid.

  5. Strategies are back tested with real variable spreads, with over 8 years of tick data and modelling quality.

MOMENTUM

Described as the rate of a price acceleration during trading hours. The price generally moves in the same direction for some times until it reverse. As soon as we see a large price movement (Bearish/Bullish), we will wait for a confirmation and then place our buy/sell orders on the formation of a new candle.

BREAKOUT

Strong price movement which break through the support or resistance technical levels. (Resistance and Support are the levels which holds the price from moving higher or Lower). We will buy/sell when a support/resistance level has been broken. Our Buy/Sell orders will be placed above/below market price of the Resistance/Support levels.

MEAN REVERSION

Change in direction during price movement and return to mean (Average Price). We refer to this strategy as being reversal trading or counter-trend trading. If we compare it to the 2 strategies above, this strategy is using the reversal of a strong price movement. We will place a trade when the price approach a support/resistance level, or after a large Bearish/Bullish movement

PIVOT

Pivot points are to determine critical resistance and support levels. We calculate the central line (CL) at specified time (Initial Hour) using the following formula:    

                             

CL = (Highest Price (Period)) + Lowest Price (Period) + Close Price at a Specific Time) / 3.

 

Support levels (SL) and resistance levels (RL) are then calculated off this central line: 

SL = CL – % of the Daily ATR (Average True Range); RL = CL + % of the Daily ATR. We can trade the pivot model as the Breakout/Mean Reversion strategy. 

PRICE ACTION

This model is based on the price movement analysis at a specific time or place.

PRICE CHANNEL

Based on the support (Low) and Resistance (High) levels. We calculate the support and resistance levels based on a confirmed minimal/maximal price.

FILTERS:

To improve the performance of each trades we make, we use filters to get the best quality for entries. It reduces the amount of trades and increases the profit factor. When we use filters in our strategies, it will leave us with the best/higher Average Trade. (Total Net Profit/Number of Trades). This value gives us as a result, the average profit of all trades. 

 

A good strategy must be profitable without filters. It will not turn a losing strategy into a winning one. Using too many filters may result in over-filtering and curve fitting.

These are the few filters we use:

  • Trend (or regime) filters

When a trade is open in the direction of a trend, we will use some of the filtering methods such as the Daily EMA (Exponential Moving Average), and the Daily HL/2. (High Low/2)

  • Volatility Filters

Trade will not be triggered if the volatility filters determine the volatility is too high or too low. They have a large influence on the strategy performance. As a filtering method, we use intraday, the width of the price range (High and Low). And the Daily (Mid-Term) ATR (Average True Range).

  • Pivot, Range, Hurst, Shadow, RSI Filters 

Filters are here to help us find the most appropriate market conditions.

Execution:

Trades are executed with limit/stop/market orders on the FX market by our Broker AXI Trader.

Control and Management of open Positions:

We control all our open positions by using take profit, stop loss, time stop, trailing stop, and other tools.

Research:

If you have any suggestions in regards to your own portfolio, we can perform a custom research of the portfolio of your choice and we will get back to you providing you with a detailed analysis and if it will be suitable to use it in conjunction with our trading strategy.

"WRAP UP"

Online Quotes

Price Channel

Pivot

Price Action

Trend Filters

Volatility

Limit Order

Stop Order

Market Order

Limit Order

Stop Order

Market Order

Profit/Loss

1. Model: 

Generating

a Signal

2. Filters: 

Filtration

3. Execution: 

Opening

a Trade

4. Management: 

Modify/Close

Trade

RISK WARNING

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Whilst the high degree of leverage can work for you, it can also work against you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is always a possibility that you could sustain a loss more than your initial investment. Accordingly, you should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.