Slice" Trading Strategy
Assortment of platform indicators broker INTRADE.BAR includes a fairly large selection of tools, among which quite a few oscillators. In this review we will look at a strategy for short-term trading. The main system is the three oscillators. They provide triple filtering of signals. Despite the common principle of all three instruments used, they are very different from each other. The differences can be traced to the mathematical calculation formula.
The "Slice" strategy is based on three indicators: Wonderful oscillator, CCI and Stochastic. The last two tools are similar in many ways, but at the same time they are not interchangeable. Each of them is unique in its own way. The Miracle Oscillator deserves special attention. Its creator is a well-known personality in the world of trading - Bill Williams. Having created this indicator, he was so delighted with the result that he preferred to call it "Wonderful Oscillator".
- CCI. This is a time-tested tool, originally created for commodity exchanges. However, traders appreciated its advantages in practice. As a result, the indicator quickly enough began to be used for analysis on stock and currency markets. The Commodity Channel Index (CCI) is currently used in both Forexas well as online trading platforms like Intrade.Bar (see the platform). It consists of a single curved line.
- Stochastic. It is this indicator is considered the main oscillator, along with RSI. It consists of two curves - fast and slow. This gave traders another type of signals: the intersection of the lines with each other.
- Wonderful oscillator. The type of this indicator is reflected in the name. Externally, it is implemented in the form of a histogram rather than a line, which is a non-standard choice. The bars are formed around the neutral separating line - above or below it. There is also a color indication: green bars indicate growth, red ones - decline
Configuring the trading terminal
To begin with, we choose underlying asset and set the graph interval to 15 seconds. This is not a rigid requirement. The main thing is a high yield (preferably above 80%). As for the time frame - it can also be any. But depending on the chosen interval, the expiry dates of contracts should be adjusted. The formula is as follows: "timeframe" * 4 = "deal duration". Considering dynamism of terms, the deviation up to 3-6 price bars is acceptable.
- Wonderful oscillator - standard;
- CCI - period: 20;
- Stochastic - period: 20, level of both areas: 50.
The strategy is notable for its simplicity. Attention should be paid to the standard trading signals used indicators. Mainly, it is a crossing of levels located in the middle. The commodity channel index has a N/A line by default. We manually adjusted the stochastic in the same way.
A signal to go up - crossing of the neutral level by the white line of Stochastic and CCI. As a result, the curves should rise into the overbought area above the N/A level. Confirmation of the signal is a change in the color of the Miracle Oscillator histogram bars from red to green. Their position relative to the neutral line does not play a key role. They can be either above or below.
Down signal - N/A level crossing from above. The CCI and Stochastic curves should fall into the oversold area located at the bottom of the indicators window. The signal must necessarily be confirmed by the change of color of the Miracle Oscillator histogram bars - from green to red.
Example of trading by strategy
At the end of the review we traditionally present a practical example of trading on the considered system. In addition to confirming the performance of the strategy, it allows you to consolidate the learned material by visual repetition.
The CCI has crossed the N/A level from below and now the way is open for it to grow further. A similar situation is observed in the Stochastic window, but it is a bit delayed. Therefore, immediately after the formation of the green bar on the histogram we open a position to increase. The timing is minimal, but in our case - 6 candles from the chart.
We made a profit as a result of this demonstration trade made specifically for this review. However, it did not happen in the best way. Immediately after entering the market the chart fell down, but by the time of expiration it managed to restore its positions. Therefore, on the whole, the signal worked out for all 100%.
Let's conclude the review by giving some practical advice to traders. First, remember that the best moment to open trades are the turning points of strongly pronounced trends. Second, refrain from trading in a sluggish market. It is better to switch to another asset. For example, CRYPTO IDX, unlike currency pairs, always demonstrates an average level of volatility. Thirdly, observe the general risk management rules, limiting the amount of investment to a maximum of 5% of the deposit.