Strategy: Trend +
1) Configuration
6) Entry, Stop and Targets
Purchases (symmetric for sales):
• Entry: buy stop 1–2 pips/ticks above the high of the signal candle (or the minimum size that applies in your market).
• Stop-loss: below the low of the signal candle or at ATR(14) × 1.0–1.2, whichever is greater.
• Take profit (partial exits):
• TP1 = R=1 (same size as the risk).
• TP2 = R=2 (or previous high).
• TP3 = R=3 or exit in strong zone/structure break.
• Management: upon reaching R=1, close 50% and move stop to break-even. Rest “trailing” by increasing lows or closing below EMA50.
7) Risk management (key)
• Risk 0.5%–1% per trade (max. 2% if you have a lot of experience).
• Position size (FX example EUR/USD):
• Pip value ≈ $10 per 1.00 lot, $1 per 0.10, $0.10 per 0.01.
• Formula:
\text{Lots} = \frac{\text{Capital} \times \text{Risk}}{\text{Stop (pips)} \times \text{Value per pip}}
Step-by-step arithmetic example:
• Capital = $1,000
• Risk = 1% ⇒ $10
• Stop = 20 pips
• Value per pip for 0.01 lots = $0.10
• Denominator = 20 × 0.10 = 2.00
• Lots = 10 / 2.00 = 0.05 (5 microlots)
8) Filters that increase quality
• Avoid high-impact news (calendar) 30–60 min before/after.
• Do not trade if the signal candle is against a giant wick right at opposite resistance/support.
• Avoid very sideways markets (flat and intertwined EMAs).
9) Invalidation rules
• If after entering, the price closes strongly on the other side of EMA50 (in H1/H4) or breaks your key low/high, exit without hesitation.
• Maximum 3 consecutive losses in the day: stop and review.
10) Quick checklist (print and paste)
1. Clear trend by EMAs?
2. Pullback to zone (S/R + EMA50)?
3. Valid and clean candle pattern?
4. Confluence (reasonable ATR, RSI not extreme)?
5. Stop entry above/below the signal?
6. Stop ≥ max(tail/ATR)? Risk ≤ 1%?
7. TPs and management plan defined?
8. No nearby news?
9. Calculated position size?
10. Capture and note in the diary?
11) How to validate (backtest + metric)
• Do ≥50 historical trades with fixed rules.
• Calculate Expectation:
E = (W \% \times \text{Avg. profit in R}) - ((1 - W\%) \times \text{Avg. loss in R})
• If E > 0 and tolerable drawdown, you're doing well. If not, adjust only one thing at a time (e.g., #MarketGreedRising #BNBBreaksATH #REVABinanceTGE $XRP $BTC
