Simple Price Based Forex System - 5emas forex trading system

Simple Price Based Forex System ~ 5emas forex trading system


Simple Price Based Forex System is a very interesting strategy that utilises no indicators whatsoever, but only price levels and setting of pending orders. The strategy works on higher time frame charts (H1 and above) with any currency pairs and in all market conditions.

Here is how it works:
  1. Firstly, we need to calculate a "Key Value" based on the current price of the currency pair. For quotes with 4 decimal places, the key value is the current price multiplied by 10 and then rounded. For quotes with 2 decimal places, the key value is the current price divided by 10 and the rounded.
  2. Place a pending Buy Order at Current Price + (2 * Key value).
  3. Place a pending Sell Order at Current Price - (2 * Key value).
  4. Place a stop-loss for pending Buy Order at Open Price - (2 * Key value).
  5. Place a stop-loss for pending Sell Order at Open Price + (2 * Key value).
  6. Take-profit for both orders is calculated similarly to the key value but the current price should be multiplied by 100 and then rounded.
  7. Place a Trailing Stop to both order at 2.5 * Key value.
  8. When one of the order get triggered, cancel the other untriggered order.
Lets look at an example of a EUR/USD H4 chart below and how these values should be calculated.
  1. The current price is 1.4810 and the current candles open price is 1.4832.
  2. The price is quoted with 4 decimal places. Therefore, the "Key Value" is calculated as 1.4810 * 10 = 14.8. Rounding it results in 15 pips.
  3. Pending Buy Order is calculated as 1.4810 + (2 * 15) = 1.4840.
  4. Pending Sell Order is calculated as 1.4810 - (2 * 15) = 1.4780.
  5. Stop-loss for pending Buy Order is calculated as 1.4832 - (2 * 15) = 1.4802.
  6. Stop-loss for pending Sell Order is calculated as 1.4832 + (2 * 15) = 1.4862.
  7. Take-profit for both pending orders is calculated as 1.4810 * 100 = 148.1, which is
    148 pips after rounding up.
  8. Therefore, the Take-profit for pending Buy Order is set to 1.4840 + 148 = 1.4988.
    The Take-profit for pending Sell Order is set to 1.4780 - 148 = 1.4632.
  9. Finally, the Trailing Stop for both orders are set to 2.5 * 15 = 37.5, which is 38 pips after rounding up.

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