HOW TO IMPLEMENT :
Trading rush – 200 period – timeframe same as chart – search in indicators for this one. Note at the bottom.
-MA crossover – set to 20 period MA, 50 period . I use the crossover indicator made by @Hpotter but you could just as easily set these up as separate and MA on the chart, which is what I do on my Binance charts.
Using the Higher time frame to identify the current momentum in the price. If the line is below the signal line then you are either focusing on taking short trades when it goes below the 200 period , or you stay out of the long signals until the crosses back above the signal line.
This goes the same for the being above the line, if the is above the signal line and your price action is above the 200 then you are looking for the next long opportunity on the shorter time frame , if you’re price action is below the 200 period then you are waiting for the higher time frame to cross back, or the price action to come back above the 200 .
LONG SETUP :
Higher time frame is above the signal line
Price action is above the 200 period
lower time frame crosses over the signal line going up. (best practice is to keep these crossovers below the zero line, but on shorter time frames it still works on either side of zero)
EMA-MA crossover candles are green, 20 period MA is above 50 period .
Price target 1.5xR.
SHORT SETUP :
Higher time frame is below the signal line
Price action is below the 200 period
lower time frame crosses over the signal line going down. (best practice is to keep these crossovers above the zero line, but on shorter time frames it still works on either side of zero)
EMA-MA crossover candles are red, 20 period MA is below 50 period .
Price target 1.5xR.
BACK TEST RESULTS ON ALL TIME FRAMES. WORKING WITH A 1.5xR.
15min chart – 15min & 60min – 68 wins 48 losses – 58% success – 18% profit on original account.
5min chart – 5min and 30min – 60wins 30 losses – 66% success – 20% profit on original account
1min chart – 1min and 5min – 97wins 53 losses – 64% success – 30% profit on original account.
Other findings during backtesting –
Potential of over 1.5xR
1.5xR – 27% chance of 1.5xR and nothing more.
2xR – 18% chance of 2xR and nothing more
3xR – 9% chance of 3xR and nothing more
over 4xR – 45% chance of over 4xR.
Whilst I try to stick to a solid 1.5xR where I can, you can see from these stats that actually there is a 72% chance of getting more than 1.5xR on this strategy, this all comes down to your appetite for risk and within the market, this would effectively mean that 27% of your trades could potentially go from a winning trade at 1.5xR to a losing trade, but 72% of your trades would return more than 2xR, so it would be worth weighing up these risks when setting up this strategy as this would reduce the success rate of the overall strategy but will alter the ROI overall, potentially for the better dependant on the outcomes.