Wildfire Trading System - Following Grandpa Elder's Principles
Hello, friends! Today we will talk about a simple forex strategy called Wildfire. Its goal is to catch an intraday trend, build up the position, and take as much profit as possible. Based on logical and simple analysis. No reading tea leaves.
Forex System Wildfire Characteristics
Platform: Metatrader 4
Currency pairs: Any
Timeframe: From M5 to H1 (H1 preferred)
Trading time: around the clock
Recommended brokers: Alpari, Roboforex
Reference Section
- Installing strategies in Metatrader 4
- How to draw trend lines
- How to identify support / resistance levels
The Basis of the Wildfire Strategy
The Wildfire strategy is based on the classic Three Screens of Elder. First, we identify the trend on daily charts, then on four-hour charts, and then, if the trend matches, we look for an entry point on H1 after first waiting for a correction against the global trend. In the analysis, the system's indicators help us.
Entry Rules
For buys:
- The trend on both H4 and D1 must be bullish (both indicator bars in the chart basement are green)
- We wait for a downward move against the trend on H1, draw the trend line of this move. We wait for its breakout and enter. Or we wait for a signal in the form of a green colored candle (the indicator does not always work correctly)
- If there is a nearby support / resistance level in the price path, we skip the signal.
For sells:
- The trend on both H4 and D1 must be bearish (both indicator bars in the chart basement are red)
- We wait for an upward move against the trend on H1, draw the trend line of this move. We wait for its breakout and enter. Or we wait for a signal in the form of a red colored candle (the indicator does not always work correctly)
- If there is a nearby support / resistance level in the price path, we skip the signal.
Stop-Loss and Take-Profit
We place the stop-loss beyond the second local high from the entry point (for sells) / low (for buys) at a distance of about 15 points from this trough / peak.
We do not use take-profit; to lock in profit we move the stop-loss behind each new peak (for sells) / trough (for buys) as the price moves in our favor. A manual analog of a trailing stop. You can also exit at strong levels.
Important!
The signal indicator that colors the candles does not always work correctly, so it is worth drawing the trend lines manually. Or at least checking the indicator signals.
Recommended Risk Level
It is not advisable to risk more than 2-3 % of the deposit in 1 trade. It is convenient to calculate the lot using a special table.
Download the Wildfire Strategy Files
P.S. Undoubtedly, the Wildfire strategy offers broad room for optimization. Do you have ideas for improving this system? Join the discussion on the forum.
Respectfully, Pavel
TradeLikeaPro.ru
Hello, friends! Today we will talk about a simple forex strategy called Wildfire.