Lucky 5 Strategy - Forget About Stop Losses!
Hello, friends! As is known, a typical forex beginner abandons a strategy after 3 stop losses in a row. But what if we exclude stop-loss triggering in the trading system, if not completely, then as much as possible? What if we trade a strategy whose trades close in profit in more than 70% of cases? It is exactly such a strategy that the Lucky 5 system is, which we will analyze in detail today.
Characteristics of the Lucky 5 trading system
Platform: Metatrader 4
Currency pairs: EURJPY, GBPJPY, as well as any pairs with high ADR
Timeframe: optional, optimal M15
Trading time: Frankfurt, the London session, and the start of the American one
Recommended brokers: Alpari, GKFX
Installation nuances
Attention! So that the terminal does not glitch and everything works, you first need to install the TS template on a chart with the D1 (Daily) timeframe, and then change the timeframe to H4, H1 and, finally, M15.
This is due to the peculiarities of the new MT4 builds.
Knowledge base
- Installing strategies in MT4
- Working with expert advisors
- How to trade pending orders
- Where to view economic news
- Psychological price levels
- ADR indicator
- What new and old points are
Advantages of the Lucky 5 strategy
- No lagging indicators, simple logic
- Intraday trading without sitting in front of the monitor for hours - analysis will take you 3 minutes per hour.
- More than 70% of trades bring profit
- Simplicity, even a beginner can understand the system
- Automatic control of open orders with the help of auxiliary expert advisors
Concept of the Lucky 5 strategy
The basis of the strategy is very simple - it is working off impulses at round price levels with filtering by higher timeframes, a trailing stop and moving to break-even.
Entry and exit rules
- Once per hour, place pending orders at the 00, 0.1, 0.2, 0.3, 0.4, 0.5, 0.6, 0.7, 0.8, 0.9 price levels
- Trade only in the direction of the D1 candle
- Enter only if the last H1 candle matches D1 in direction
- Start trading at the Frankfurt open, finish 2 hours after the New York open
- At the Frankfurt open, trade only the 0.4, 0.5, 0.6 levels
- Do not sell at 0.1 and do not buy at 0.9
- Take profit 5 points, stop loss 10 points
- Move the position to break-even after 3.5 points of profit. Also at the 3.5-point level, the trailing stop is activated. Control is performed automatically with the help of expert advisors - see the video
- There should be at least 10 points to the ADR boundaries
- Do not trade one hour before and half an hour after the release of important news
- The goal is 10 points per day, then stop trading (advice from the author of the TS)
- If price has already passed ADR, do not trade any more that day
- Trade only the first crossing of the level!
Bottom line
The Lucky 5 forex strategy offers us a very interesting approach to intraday work, relying exclusively on logic. The advantages also include the small amount of time needed for analysis, since orders are placed once per hour and then controlled automatically. Of the system's disadvantages, it is worth noting the stop loss being high relative to the take profit. However, this point is compensated by the high percentage of profitable trades, as well as the automatic move to break-even and the trailing stop, which minimize the triggering of a full-size stop loss.
Download the Lucky 5 strategy files
Best regards, Pavel TradeLikeaPro.ru
Hello, friends! As is known, a typical forex beginner abandons a strategy after 3 stop losses in a row.