Forex Strategy: Apocalypse - an avalanche of profit that you can’t hide from
Good day, comrades Forex traders! Many have heard, including from trading books, that the market is directly in the trend only 25% of the time. And the remaining 75% is observed either flat or zigzag up and down movements. Everything is clear with the trend, but how can one make profit from 75% of chaotic movements? There is a solution - using forex strategy ApocalypseYou squeeze the market dry.
Characteristics of the Apocalypse trading strategy
Platform: Metatrader 4
Currency pairs: EURAUD, EURJPY, GBPAUD
Trading time: from 9 a.m. to 5 p.m. Moscow time
Recommended DCs: Roboforex, Forex4You (recommended accounts with market execution due to low spread)
First, a little theory. In many trading books, one can find the statement that the market is directly in the trend only 25% of the time. Let's try to look at this statement from a practical point of view.
Below in the photo you can see the EURUSD chart, time frame H1:
Let's mark on the chart the segments where the trend was observed, visible with the naked eye:
Here are the obvious areas. Next was an incomprehensible flat and several more sections:
It can be seen with the naked eye that the market, even if not accurate to a percentage, but about 25% of the time, is in a trend. Moreover, I did not specifically select a pair or schedule somehow. This observation is generally observed on any chart. What shall we do with this? Naturally, benefit from this!
So, if we have 25% of the time the market is trending, and most of the time is in the flat or in zigzag movements, then we need to monetize them. Why are zigzag movements monetized well? Flat with high volatility is well monetized by Mantirgale, because we expect that the price will not go far. When a position is in the negative zone, we increase it. And when the price returns, we take our profit.
The minus of Mantirgale is that in the presence of a trend there is a "drain", as lots increase, and the price goes further. And if the price does not unfold, then a margin call occurs. Therefore, our task is to limit the work of Martingale to only a zigzag flat. How can I do that? First of all, excluding pairs of majors. That is, pairs that have the American dollar (USD) in their composition. And replace these pairs with only crosses. Since cross rates themselves are less prone to trends than major pairs.
How can we still limit the work to flat? Try to avoid the news. And trade only at certain times. That is, do not wait for a trend to appear, but limit the work.
Naturally, you can manually open positions. But it is better if the adviser does this for us, and we will manage his work. Accordingly, include it at a certain time and avoid news, while assessing the situation. And another way to filter a trend is to evaluate the morning flat (more on this below).
Strategy rules: When to enable / disable the adviser
We turn to filtering the work of the adviser. By the time it needs to be turned on / off. And also on what days it is generally better not to include. Immediately make a reservation that we do not trade every day. Remember that you do not have any obligation to include an adviser every day. If the conditions do not favor trading, then on this day the adviser is not included. Or turn it on, but, for example, on one pair of three. Where there is no visible danger.
The possible time for the adviser to start working is from 9 a.m. to 11 a.m. Moscow time. The completion of work from about 15 to 17, again, according to Moscow time. We do not hold the EA around the clock. We include it only in the most active time of the day.
First of all, we want to ensure that the red news on the currencies that are present in our trading pairs does not get into the EA’s working hours:
I personally watch economic news on Forexfactory. We have already seen how to use this calendar more than once. There are dozens of sites with an economic calendar. You can use any. There is no special difference.
See that there are no important news on the currencies involved in our pairs. If there is any news, then on this day it is better not to trade. Moreover, the author advises to ignore news on euro. With the exception of changes in interest rates, which is extremely rare, and speeches.
That is, we ignore the news on the euro. If there is red news on one of the trading currencies, then on this day we do not use this pair in trading. Also, sometimes there are situations when some news came out at night and there was a very strong movement, as in the screenshot below:
If during the night there were such inadequate movements, and you observe them, then it is better not to trade. Why? Because the pair becomes unpredictable, it goes into a shallow flat. A small flat is not interesting to us. For us, only the zigzag shape is important when the price moves up and down with great volatility.
If there is a sharp movement at night, then in the morning you should not trade. This applies to all pairs. Moreover, such movements can be without news. If they happened, it is better not to include an adviser.
Another important point that is recommended to pay attention to is the morning flat:
Why is it the condition for the inclusion of an owl in the interval 9-11 in the morning? Because we are waiting for the currency pair to come out of the morning flat. That is, at 9 in the morning you draw such a channel with horizontal lines:
And when the price clearly breaks it, then turn on the robot. It is not easy for beginners to immediately make such constructions, and it may seem to them a simpler solution, immediately turn on the adviser at 9:15 and forget about it. But I strongly advise you to do such an analysis, because it will help to avoid unnecessary losses.
And one moment. Try to avoid low volatility flat:
That is, try not to trade on holidays or when Non farm Payrolls is expected to exit. As a rule, the market is in calm before the “nonpharms”. And where he then shoots is unknown. Therefore, on such days we do not enter the market. We try to avoid low volatility flat. Our task is to profit from a highly volatile flat. From zigzag movements.
What days and when exactly to include the adviser we figured out. Now we turn to the moment of shutdown. Turn off the advisers in full pairs from about 15:00 to 17:00 Moscow time, depending on how you are comfortable. First, turn off all advisers, and then close the deals that hang open in the terminal. And it does not matter if they have a profit or not. Close anyway.
If there is a significant, but not very large loss, then it is also better to close it. And take on this day a certain minus. To close all positions, you can use the CloseAllOrders script, which comes with strategy files. Just drag it onto the chart and all orders in the terminal will be closed.
It is undesirable to leave orders on the next day, but if you do not expect any news at night and the positions are in the red, which can turn into a plus, then you can leave the positions. But the priority is still to close.
The author recommends setting goals for one day. For him, this is about 2-3% of the profit on the deposit. And when the goal is achieved, disable the adviser without regrets. Or, let’s say the goal is 2% per day, and a profit of 5% has already been achieved, and -2% hang in the red, then you can safely close open positions. And as a result, the final profit will be 3%.
We try to close positions and not leave them the next day. Percentage goals depend on the aggressiveness of your trade. From the money management you use (see below).
How does the adviser work?
Before starting the magic machine, let's figure out how it works. Let's understand how our particular ilyan opens deals. Since there are a lot of modifications of ilan, we will analyze how exactly our specifically used in this strategy works. By what logic does it open positions.
Although the EA is placed on the M5 timeframe, the signals are taken from H1:
I switched the EURUSD currency pair to the hourly chart and added the RSI indicator, as it is used to receive a signal to open a position by an adviser. The EA follows RSI signals with a period of 14 s on the hourly chart.
How does the adviser open positions?
Let me remind you that this is Ilan, and Ilan is aimed primarily at a large number of orders, so there are no sophisticated filters here. Filters for opening positions are very simple. Used by RSI. The current candle is not taken into account.
The adviser looks at the previous, 2 closed candles. And if the closing prices of two candles to the current one consistently fall and at the same time the RSI is not in the oversold zone, that is, above the level of 30, then the adviser opens a sell position.
For purchases, the opposite is true:
If the closing prices of candles rise steadily, while the RSI is below the overbought zone, that is, below the level of 70, then the adviser buys.
If the price goes against the position, then additional orders are opened with a lot increased by three times. It may sound aggressive and scary, but we'll come back to the issue of risk.
This is how the adviser works. You can run it in the strategy tester in demo mode with visualization:
And look live as he opens up the position. I’ll say right away that putting it in real life is a rash step. At first, only a demo to understand the essence of the method.
How to enable and disable the adviser?
If you want to use the robot in three currencies, then open three charts and hang on each advisor. To prohibit the adviser from trading, just press the auto-trade button at the top of the terminal so that it becomes with a small red circle:
Thus, all advisers that are installed on the terminal will stop working. But if you want to prohibit trading not to all advisers in the terminal, but only to certain ones, then there is an alternative option. Leave the auto-trade button green:
And go to the settings of a specific adviser:
On the General tab, uncheck the box “Allow Advisor to Trade”:
Now trading is prohibited to the adviser. He will not open new positions. And while this does not affect the rest of the advisers. This is how it is very simple to enable and disable Expert Advisors without removing them from the chart.
Description of advisor settings
- Lotexponent - This parameter tells the robot how much to multiply each subsequent lot (bet, knee). Example of using LotExponent: Suppose you set LotExponent = 1.3 and the initial lot = 0.10, then bets will be set as follows - the first 0.10, the second 0.10 (initial lot ) * 1.3 (LotExponent) = 0.13, the next 0.13 * 1.3 = 0.169 (the program will round to 0.17) and so on. Theoretically, the higher the LotExponent, the more profitable the trade becomes, however, do not forget that even with a small increase in the parameter, your initial deposit should be much higher to withstand drawdowns.
- Dynamicpips - this setting is responsible for the choice between dynamic trading and static (the default is true). In dynamic (true) trading, the robot will choose at what moment to open a new lot, and in static (false) - the lot will open strictly at the moment you specify, which is determined by the DefaultPips parameter;
- Defaultpips - it is responsible for the distance between open orders (the higher the parameter, the less often orders will be placed, an increase in the parameter helps a lot with prolonged movement of the pair in one direction);
- Glubina - the parameter responsible for the analysis of the market before the start of trading (the larger the number, the more candles will be analyzed before the order is opened);
- DEL - a parameter that defines DefaultPips. Only works if true is set to DynamicPips;
- Slip - slippage parameter. Determines how much the price may deviate from the requested;
- Lots - indicates the size of the initial lot;
- Lotdemical- lot definition (full, micro and mini). Depends on your account and DC;
- TakeProfit - determines the number of profit points at which the robot will close the current session and open a new one;
- Drop - an indicator of automatic closing of positions during sharp movements of a currency pair;
- RsiMinimum, RsiMaximum - lower and upper bounds of the RSI indicator. According to this indicator, owls enters the market, and also places subsequent orders;
- Magicnumber - a unique number, thanks to which the adviser can find exactly his orders;
- Maxtrades - with this parameter you indicate the maximum number of lots opened by the robot (the first order is considered to be 0, the second to 1, etc.);
- TotalEquityRisk - the parameter that enables (true) or disables (false) the UseTrailingStop settings that are responsible for closing orders when you reach the drawdown indicated by you;
- UseEquityStop - the numerical value indicated in percent (for example, if you put the value 25, then this will mean that when reaching 25% drawdown all open orders will be automatically closed);
- UseTrailingStop - this parameter activates the so-called trailing stop (automatic takeprofit move as the price moves in the right direction);
- UseTimeOut - disables (false) or enables (true) the closing of transactions in time (after a specified time interval, the transaction, regardless of whether it is unprofitable or profitable, will be closed);
- MaxTradeOpenHours - is responsible for the time after which the current trading session will be closed.
Recommended Money Management
1. High Profit / Risk Ratio
Option used by the author of the strategy. It implies a lot of 0.01 for every 500 units of currency in the account for 1 pair. Those. if you want to trade all 3 recommended pairs with a starting lot of 0.01, you will need 1,500 currency units in your account.
The table below shows the recommended minimum deposit per pair for different types of accounts.
|Account type||Minimum lot and lot step||Min starting deposit||Brokers Examples|
|Cent-NDD||0.01||$ 5 (500 cents)||Forex4you|
|Pro accounts||0.1||$5000||The classic type of account with most brokers|
2. Moderate risk
|Account type||Minimum lot and lot step||Min starting deposit||Brokers Examples|
|Cent-NDD||0.01||10 $ (1000 cents)||Forex4you|
|Pro accounts||0.1||$10000||The classic type of account with most brokers|
The option with lower risks. Lot 0.01 for every 1000 currency units in the account for 1 pair. For 3 pairs, respectively, at least 3,000 units will be needed.
3. Conservative option
The most low-risk option. Profit, of course, will also be lower. Lot 0.01 is used per 10000 units of currency on deposit. But for all 3 pairs.
|Account type||Minimum lot and lot step||Min starting deposit||Brokers Examples|
|Cent-NDD||0.01||$ 100 (10,000 cents)||Forex4you|
|Pro accounts||0.1||$100000||The classic type of account with most brokers|
How to work with risks?
Will there be a margin call one day? One day he will be. Since martingale is used. The lot increases by three when the price moves against our position. Therefore, sooner or later you will either make a mistake and forget to turn off the adviser, or decide what you’ll carry over and leave your positions for the night and this will turn out to be the wrong decision. Sooner or later, the deposit will be drained.
But, since the strategy is highly profitable, we can do the following:
- Withdrawal of profit upon reaching a yield of 100%
- Withdrawal of profits every week
- Output profit every N%
We can mitigate risks, namely, to withdraw the money that we initially put on deposit. And work already exclusively with the money earned. How can we do this?
The withdrawal of profit is possible when the yield is 100%. This is the most ideal option for us. Roughly speaking, your initial deposit was $ 1000. You earned another $ 1,000 and brought out the half that we originally pledged. In fact, you are not risking anything. Earned another 1000 and brought out. One fine day there was a drain, you lost $ 1000, but you earned $ 5000.Thus, the loss of such an amount becomes not something terrible, but an imperceptible decrease in total profit. But such a strategy is suitable when using not the most conservative money management.
It is also possible to withdraw profit every week. Let's say they earned 30% in a week and withdrawn. If we again take the example of $ 1000, we earned $ 300 and withdrawn. We trade further. Next week they earned another $ 300, withdrawn, and so on.
Well, it is also possible to withdraw profit every N%. Set the bar for you to withdraw profits every 20%. And withdraw every 200 $ with a $ 1000 deposit. No matter how you earned them. For a week, for a day or for some other period.
In general, our task is to derive profit and continue to work with the money earned on this strategy. Without risking your own funds. Since we know that margin call will happen, our task is to constantly withdraw profits and risk only the money that we earned.
What might it look like?
1000 + 200 + 300 + 500 + 600 + 800 + 400 - 1000 = 2800$
They earned 200 per week and immediately withdrawn, another 300 and withdrawn. As soon as the margin call occurs, our thousand merges. And no matter what happened, in the bottom line, we have $ 2,800 of net profit.
What do we do after the merger? We open a new account or put on the same of the profit $ 1000 and a new one. That is, we constantly withdraw profit and leave in the work only the money that, let’s say, has been allocated for a risky working venture part.
Thus, we turn a high-risk strategy into a highly profitable one. In this way we reduce our own risks. And do not forget about filtering days in which you should not trade. This was written above.
Forex Strategy Apocalypse is a powerful weapon in working in the foreign exchange market. But, like a worker working with a milling machine, a trader should follow safety precautions when trading using this system: namely, money management, risk control and filtering the days when you should not trade. Everything about this is written above. Be careful and profit will not keep you waiting.
For stable operation of the adviser, the trading terminal must be turned on! If you cannot keep the computer in working order, it is recommended to use the VPS server service.