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There are various simple forex strategies based on the use of candlestick analysis. We will not analyze in detail all the models that make up the candles, but dwell on the use of one of them, a reversal one - “Cross harami”. This model includes a large body of one candle and a small body of another, followed, completely within the range of the first. In this case, the smaller the body of the second candle, the more significant this model.
Preceded by such a model, as a rule, a pronounced trend. And when the market unexpectedly makes a U-turn, without leaving the range of the previous candlestick, a dodge-candlestick is formed, with almost equal opening and closing prices. These prices may differ from each other within 2-3%. However, this model will be valid only if there are no doji in the data for previous days. Crosses harami are divided into bullish and bearish and, accordingly, signal an uptrend or downtrend.
As you can see, a strategy based on these models is extremely simple and, at first glance, logical, but by testing it on historical data, we will get a negative result indicating that this system is unstable. If you take a long position, after a few bars after the formation of the bearish cross, when the market stops falling, its growth begins again, or, on the contrary, to sell after the formation of the bullish cross, the test results turn out to be significantly better, and the drawdowns are small .
So, the figures clearly show the signals for the sale and purchase after the formation of the bull and bearish “cross harami”, respectively. We open orders by skipping a few candles in advance. This system is reversible or, in other words, a flip-flop — when a buy order is closed, a sell order is simultaneously opened and vice versa.
Like many other simple forex strategies, it is quite possible to make this system automatic, that is, having basic programming skills, you can create an adviser based on it. It is also useful for testing the system and its further optimization. In the event of a change in the market situation, the system can easily be reconfigured to get better trading results and reduce drawdowns.
And one more rather important point, without which the “Cross Harami” strategy will be flawed. It is imperative to limit losses by placing stop orders. The value of the stop loss is also selected by testing. Naturally, its size should not be too small in order to avoid false triggering when it is “thrown out” from the market prematurely, and also too large for losses to become critical for a deposit. The optimal stop loss level is no more than 5% of the total trading capital.
The Cross Harami system has one important advantage - the absence of significant subsidence during lateral movement. Another significant plus is a stable profit for different values of optimization variables in the advisor. Despite the fact that the number of profitable transactions is less than unprofitable, the average profitable transaction is almost twice the average unprofitable one. In conclusion, it should be noted that this system is most suitable for intraday trading. כנסו לאתר נערות ליווי dizengoff-escort.com ותזמינו נערת ליווי שווה
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