Prometheus Strategy: How Not to Be Fooled by the Market

To create something, you must first destroy.

It is no secret that there is deception on Forex. Otherwise, everyone would already be millionaires. The market makers have to earn somehow, right? That is why they use traps for simple naive traders with 100 bucks in their account.

The "Prometheus" strategy uses those very same "traps" to make a profit. After all, it is better to be on the side of the big players, is it not?

Platform: Metatrader 4
Currency pairs: any trending pairs
Timeframe: any
Trading time: around the clock
Recommended brokers: Alpari, Roboforex

The system uses a single indicator - Better Volume 1.4. A red bar signals a buying climax - an increase in trading volume and spread (the difference between the high and the low) on a bullish candle. A white bar, by contrast, signals a selling climax on a bearish candle. When there are no signals, the indicator draws a light blue histogram.

In describing how this strategy works, we will use terminology applied in VSA methods. Therefore, first we need to understand the concepts of selling and buying climaxes. In short, selling and buying climaxes are nothing more than an imbalance of supply and demand that leads to a market reversal.

Within the "Prometheus" strategy, we first determine the presence of a clearly defined trend, after which we wait for a selling or buying climax. The climax is followed by a phase of position accumulation by major players - a consolidation period on the price chart. After that, the price knocks out the pending orders of weak market participants and forms a second top or a second bottom, where we enter the position together with the major market participants. This setup strongly resembles the "Double Bottom" or "Double Top" pattern.

Take profit: 72; Stop loss: 24 (we determine the stop using the ATR indicator at the moment the order is placed).

Take profit: 147; Stop loss: 49.

Take profit: 39; Stop loss: 13.

The stop loss must be set so that the shadow from the second top or the second bottom does not knock it out. Therefore, we set the stop loss approximately equal to the average candle body on the chart.

We set the take profit equal to three stops. But, when working with any strategy, support and resistance levels should be taken into account. If there is an important level between the opening price and the profit target, the take profit should be moved closer to the support or resistance level.

You can trade on any timeframe, but I would recommend periods from M15 to H4. This is because the strategy uses VSA methods that are designed for intraday work.

Also, if you entered a position and the market is standing still for a long time, the 5-candle rule comes into force. That is, after 5 candles, if the market is standing still, it makes sense to exit the position with a small profit or loss.

A big advantage of the strategy is its simplicity and versatility, which makes it possible to use this trading tactic on almost any pair or timeframe. All we do is follow the big players while they build a position opposite to the current trend. Since the strategy is countertrend, it is not suitable for beginners. But you can always try your hand on a demo account in order to gain confidence before a clash with the main players of the forex market.

Respectfully, Pavel Vlasov TradeLikeaPro.ru