A Simple Trading Strategy that Truly Works
One of the aims of The Financial Forecast is to create and deliver tools affordable to everyone, allowing you to make informed decisions faster and easier, increasing your accuracy and profitability. For this reason, we are presenting a simple but successful trading strategy using our chosen indicator Power Bundle, developed by Trading Indicators.
The Power Bundle works with 2 of the 3 principles we use to analyze the financial markets and to develop our tools and strategies, these are Trend and Volatility. This great tool has 3 different indicators,
- The Volatility Crusher, to detect key changes in volatility.
- 1-2-3 Strike, to follow strong trends.
- And Divergence Cloud, to find trends and exhaustion.
For this strategy, we are going to use,
- The Volatility Crusher in the 4h time frame to detect explosive volatility changes.
- 1-2-3 Strike to capture the strong trends in the 4h wave patterns.
- And the Divergence Cloud to validate the positions suggested by the other 2, based on the trend showed with the clouds (green for long positions and red for short ones).
The indicators can be customized by adjusting the parameters using the Instant Efficiency Statistics, where you can see the accuracy for the period selected. In our strategy, we are adjusting the parameters based on the prior 2 years’ performance and fixing this setup to work in the current month.
The entries are shown in the Volatility Crusher with the rectangles, and with the crosses in the 1-2-3 Strike.
The instruments we are trading are,
In this blog, we are sharing the performance and transactions generated in October, but you can get a weekly update if you subscribe to our community.
GBPUSD October Performance
We have 1 long position executed following the Volatility Crusher opened on Oct 14th and reached the 1st Take profit level on Oct 15th.
The 1-2-3 Strike gave us a long position on Oct 4th, reaching the 2nd take profit on Oct 18th.
EURUSD October Performance
We got the closure of a short position opened with the Volatility Crusher on Sep 29th, but no positions opened until today (Oct 18th).
Same for the 1-2-3 Strike, more than 150 pips position closed at the beginning of Oct, and one long position opened on Oct 14th active and positive.
BTCUSD October Performance
A long position opened with the Volatility Crusher reaching the 2nd Take Profit.
Same for the 1-2-3 Strike, a nice trend caught with more than 8305 dollars price change.
XAUUSD October Performance
There is an open position with the Volatility Crusher close to the Stop Loss at 1757.
The 1-2-3 Strike gave us a nice swing, with the position opened on Oct 1st, reaching the 2nd Take Profit at 1795 on Oct 13th.
The final statistics with this Power Bundle strategy from Oct 1st until Oct 18th are,
- Total Transactions 8
- Winning Transactions 6
- Losing Transactions 0
- Open Transactions 2
- Accuracy 75% (considering the open transactions as loss)
If you have questions about how to put into practice this strategy, please contact us.
*All information on the investment strategy is based on a model calculation and is not an indication of future performance.Back to Blog