Base 150 Trading System - Bulletproof Classic
The world belongs to the patient. Jack Trout Hello, friends, forex traders. Today we will talk about the classic strategy called Base 150. It originated in the depths of the Price Action thread on the Forex Factory forum, and gained fame after some traders managed to get up to 80 profitable trades in a row with it. However, a typical forex beginner, after reading the rules of the system, does not get good results. Why? What is omitted in the description of this strategy on Russian-language forums? Let's figure it out.
Characteristics of the Base 150 Forex Strategy
Reference Section
- Moving averages
- How to install a strategy in MT4
- Support and resistance levels
- Price Action patterns
- Elder's Three Screens
Principle at the Core of the Base 150 Strategy
A situation often arises when, after a strong impulse, the price, before continuing its further movement, makes a short-term pullback to the nearest resistance or support level. Moving averages will act as dynamic support and resistance for us. Our task is that after signs of a reversal appear, to open a trade in the direction of the breakout.
To determine a significant breakout, the strategy uses two slow MAs with periods 150 and 365, and to confirm the pullback, two fast MAs with periods 6 and 25.
The main trading is conducted on the H4-D1 timeframes, which are optimal for this strategy. We will additionally look for entry confirmation on a lower timeframe, which should reduce the percentage of false entries. For D1 this will be the H4 timeframe, and for H4 - H1.
Despite the fact that the system may produce a certain number of losing trades, they are more than covered by profits from large trending moves.
Entry and Exit Rules
- The price broke through the slow MA upward.
- MA 6 is at the same level as or above the slow MA.
- After the price touches the fast MA, move to the lower timeframe and wait for a reversal signal (It is important to note that subsequent touches of the MA are no longer taken into account; the trade should be opened only after the very first pullback).
- The same applies on the first touch of one of the slow MAs, or the 25 MA.
When using a more conservative approach, you should wait for the slow MA to be touched and only then look for an entry on the lower timeframe, which in some cases gives a more favorable entry point. As an option, you can use both approaches at the same time and, when possible, add to the position on the touch of the slow MA.
Rules for entering a sell
- The price broke through the slow MA downward.
- MA 6 is at the same level as or below the slow MA.
- After the price touches the fast MA, move to the lower timeframe and wait for a reversal signal (It is important to note that subsequent touches of the MA are no longer taken into account; the trade should be opened only after the very first pullback).
- The same applies on the first touch of one of the slow MAs, or the 25 MA.
To gain additional profit, you can use a trailing stop, with which you can catch prolonged trends. Which method to choose largely depends on the volatility of the pair, and for flatter ones a fixed profit will work better.
Money Management
Standard position sizing is recommended in this system - 1-3% per trade. You can calculate the trading lot using our mobile app.
Conclusion
The Base 150 Forex strategy remains a powerful weapon in skilled hands to this day. For its successful use, it is worth taking only the first pullback to the "heavy" averages (150 and 365), and also looking for the actual entry moment 1 timeframe lower, taking into account support / resistance levels and Price Action patterns. Your personal filters are also welcome, since a strategy that suits you specifically is the key to success in trading.
Download the Base 150 strategy template
Discuss on the forum
P.S. The examples in the video are analyzed using the Forex Tester program.
Best regards, Pavel Vlasov
TradeLikeaPro.ru
Today we will talk about the classic strategy called Base 150.