Real Value Forex Trading Strategy

The Real Value Forex Trading Strategy is a profitable strategy that can be termed short-term/long-term.

We would shed more light on this and make it clearer how a strategy can be short term and long term at the same time.

Chart Setup

MetaTrader4 Indicators: realvalue.ex4 (default setting), The Legacy Trader MT4 Indicator.ex4 (default setting), Stalin.ex4 (colors modified)

Preferred Time Frame(s): 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download The Real Value Forex Trading Strategy.

Buy Example (click the image for full size)

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Fig. 1.0

Trading Strategy

Long Entry Rules:

Enter a buy position when the following conditions are in place:

  • The realvalue indicator line is below price bars i.e. the first bullish candle that has its open and close price above the realvalue red indicator line.
  • The Legacy Trader MT4 Indicator has its aqua colored dotted lines below the candlestick formation.
  • The Stalin indicator has its red arrow pointing upward.

Stop Loss For Long Entry: ≤30 pips for short term trading and ≥60 pips for long term trading.

Exit Strategy/Take Profit for Long Entry:

The exit strategy for the Real Value Forex Trading Strategy is as follows:

  • When the first bearish candlestick opens and closes below the relvalue red indicator line. This is a loud signal that such position(s) should be liquidated in the market.
  • Magenta colored “The Legacy Trader MT4 Indicator” forms above the candlestick, thus signaling a shift in trend.
  • A yellow downward pointing arrow on the Staling indicator signifies that the existing bullish trend is reversing and trader(s) should take profit and exit his/her position(s).

Sell Entry Rules:

Short signals are triggered if the following patterns are seen on the custom indicators:

  • The first bearish price bar that opens and closes below the red “realvalue” indicator line is a bullish signal.
  • The formation of magenta dotted lines above price bar is a signal that price pressure by sellers is winning and a bearish trend is in the making.
  • The Stalin indicator arrow changes color to yellow and points downward, signaling a sell.

Stop Loss For Sell Entry: ≤30 pips for short term trading and ≥60 pips for long term trading.

Exit Strategy/Take Profit For Sell Entry:

General exit or those for take profit are as follows:

  • First bullish bar that opens and closes above the red “realvalue” indicator line, signals a possible reversal and position(s) should be exited accordingly.
  • An exit is in place when the aqua colored dotted lines form below price bars on the chart.
  • The red colored Stalin indicator point upward is an indication that price is reversing and position(s) should be liquidated.

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Fig. 1.1

Free Download

Download Real Value Forex Trading Strategy.

About The Trading Indicators

One of the main indicator of this trading strategy is the “realvalue.ex4” The realvalue tries to approximate the value of the real market. The whole notion of the realvalue indicator is to design an indicator that changes its direction much slower than the market price, making it better tailored than Moving Averages.

The Legacy Trader MT4 Indicator uses aqua and magenta colored dotted lines above and below price to denote sell and buy signal respectively.

On the other hand, the signals that are generated via the Stalin indicator are carried out via intersection of two moving average.

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