Forex Ultra Filter - a rough and tough approach to the market
Hello, fellow forex traders!
The market is like a woman, sometimes requiring persistence, a rough approach. Simple and tough decisions. After all, our main goal is to make a profit, even if by not entirely elegant methods.
Today we will look at the extremely simple and effective Forex Ultra Filter strategy, developed specifically for the AUDUSD pair. Even a beginner will be able to follow it. The author of the system, our forum member XTPUSD, increased his deposit sixfold with it over a year.
Characteristics of the Forex Ultra Filter strategy
Platform: Metatrader 4
Currency pairs: AUDUSD
Timeframe: H1 + H4
Trading time: around the clock
Recommended brokers: Alpari, Roboforex
Reference section
- Installing strategy files in MT4
- How to trade AUDUSD
Basis of the strategy
If we look at the daily chart of the AUDUSD pair (see above), even with the naked eye we can see clear trend swings practically begging us to take profit from them. This allows positions to be held for a long time.
The obvious conclusion is that we need a good entry/exit trigger and optimal take-profit/risk levels. And of course, we should not forget about money management.
Entries and exits
Entries are made using the Ultra Filter indicator. Everything is extremely simple: we enter when the indicator changes color. Red means sell, blue means buy.
Moreover, and this is important, we ENTER AT THE OPEN OF THE SIGNAL CANDLE, unlike many other indicator strategies, where entry is made after the signal bar closes. That is, as soon as a signal appears at the candle open, we open an order immediately. We do not enter right away with a market order on the signal bar, but place a pending order adjusted for the spread at the opening price of the signal bar.
Exit is on the opposite indicator signal (trade reversal), or by Stop Loss/Take Profit.
Stop Loss and Take Profit
The Stop Loss in this strategy is 70 points, which roughly corresponds to the average daily volatility of the Australian dollar.
Take profit is 210 points. That is, 3 times greater than the SL.
Money Management
Recommended risk level: 0.01 lot for every $100 of deposit.
Additionally
Entries according to the system are made around the clock, regardless of the current trading session. We do not pay attention to the release of economic news.
System Variant No. 2
There is also a longer-term variant of this system for those who do not have time to follow H1.
Trading is carried out on the four-hour chart (H4); we also enter/exit based on the indicator's signals. The stop-loss is 150 points, the Take Profit is 450.
Conclusion
The Forex Ultra Filter strategy shows that even a crude approach to market analysis yields profit if the rules are followed. This system will suit traders who are attracted by simplicity, as well as by the absence of a need to devote much mental energy to daily market analysis.
Among the system's drawbacks, one can note drawdowns, often prolonged in time, since we are trying to capture large trends. In this respect, the system is similar to the famous Turtle strategy.
Download the strategy files
Respectfully, Pavel Vlasov TradeLikeaPro.ru
The market is like a woman, sometimes requiring persistence and a rough approach.