Forex Profit Boost Indicator - Hurricane Profit
Good day! Simple trading systems, as you know, are not necessarily unprofitable. Today we will consider Forex Profit Boost - A simple indicator, which in itself is almost a whole trading system. This indicator is hybrid and consists of two classic indicators: Bollinger Bands and Moving Averages.
Platform: Metatrader 4
Currency pairs: trending
Trading time: depends on trading tactics
Setting Forex Profit Boost Indicator
Forex Profit Boost indicator is set according to standard instructions. No difficulties should arise.
Forex Profit Boost Indicator Parameters
- MAPeriod - period of the moving average.
- MAMethod - Moving Average Averaging Method:
- 0 - simple averaging;
- 1 - exponential averaging;
- 2 - smoothed averaging;
- 3 - linearly weighted averaging.
- BBPeriod - period of the Bollinger Bands indicator.
- BBDeviation - the number of standard deviations from the zero line.
- BBShift - indicator shift relative to the price chart.
Using Forex Profit Boost Indicator
As I said, the indicator consists of several classic indicators, Bollinger Bands and two Moving Average. This indicator is trendy, respectively, it gives the best results when working in trending markets, in a calm market it will give a lot of false signals (i.e. filters are needed). The indicator shows the presence and strength of the trend of a currency pair. For signals in total, three colors are used - the default is yellow, blue and red. As you probably guessed, the red color indicates the presence of a bearish trend, while the blue color indicates that bulls rule the market at the moment. Yellow color indicates a weakening of the current trend, a possible change in trend, the beginning of a rollback or flat section. The more yellow, the more likely a change in trend.
In my opinion, working with him will be more effective in older periods, from four-hour charts and above, although the authors claim that he will work well for any periods. For periods of less than four hours, the indicator gives a lot of false signals, although it is possible that they can be reduced by a competent selection of parameters for a specific period and additional filtering of transactions.
Forex Profit Boost Indicator Device
The indicator includes several classic indicators: Bollinger Bands and two Moving Average - one of them is configured in the settings, the second MA is a simple moving average, built at closing prices with an averaging period of 21. When the custom moving average is above MA21, the indicator will be painted in blue color, when below - in red. This determines the presence and direction of the trend. The closer the moving average is closer to the Bollinger Bands, the less yellow, the stronger the trend. The indicator is not redrawn, easy to use and configure.
Signals from the Forex Profit Boost Indicator
For the following screenshots, I overlaid the indicator: classic Bollinger Bands and a moving average in order to more clearly highlight the boundaries of the histogram. The authors of the indicator offer two options for signal extraction - aggressive and conservative. I'll start, perhaps, from the first.
The first, aggressive version of the signal occurs when the histogram of the indicator changes color from red to blue and vice versa, that is, when the direction of the trend changes. In this case, when the bullish mood changes to bearish (the circle in the screenshot is at number 1). Despite the fact that, as an example, we entered at the very beginning of a nascent bear trend and could have taken a lot of points with such a deal, in a sedentary market you would have managed to lose many times before jumping into a really worthwhile deal.
The second, conservative entry option assumes the expectation of a rollback after the emergence of a new trend with subsequent continuation, thereby slightly increasing the likelihood of falling into the trend (circle in the screenshot with number 2). In other words, we enter the deal after the price has rolled back, and then went in the right direction (the yellow bars of the histogram began to decrease in size).
Although I did not find the rules for exiting positions from the authors of the indicator, I still offer two different options for exiting. For conservative traders, the exit is suitable when the yellow bars of the histogram appear (point 3 in the screenshot). In case of more aggressive trading, you can exit when the indicator red changes to blue (point 4). Aggressive traders can also use small pullbacks to top up existing positions (points 3 in the screenshot).
Both input options will give good results with the right filters. In this case, since the Forex Profit Boost indicator is trending, I mean, of course, oscillators. MACD works well for this task:
Strategy from 2nb
On our forum a forum member 2nb an original strategy was invented using this indicator alone. Work is ongoing on the M5 period of the EURUSD pair during the London session. The essence of the strategy is as follows.
On period D1, we look at the color of the closed bar (previous day). In his direction, we will trade. If the previous daily indicator bar is red, we consider only sales, if blue - only purchases.
Next, go to M5 and look directly for the entry point. We are looking for a pullback from the main trend, for example, when a bull trend is waiting for a red section to form, and then after closing the first blue bar, we set a limit order approximately in its middle.
Quite simple to use, but at the same time, it is worth trying to use ForexProfitBoost indicator in your system. It gives quite decent signals in the trending market, and when using additional filtering methods, such as candlestick formations, levels or oscillators, it is a ready-made trading system.