Balanced System Strategy

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balanced system strategy example

With following of balanced system Strategy and using multiple Indicators you have a grater chance to enter into a winning trade.

 

  • TimeFrame: 1 hour recommended works on others as well
  • Symbol: EURUSD preferred but it works on any currency
  • Risk: MAX 1% of account equity per order
  • Indicators:
    • Moving Average (200 EMA)
    • Relative Strength Index (RSI 14)
    • Stochastic Oscillator (14, 3, 3)
    • MMA Colored_v3 (Fast: 5, Mode_Fast: 1, Slow: 10, Mode_Slow: 1)

 

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Balanced System Strategy Overview:

Make sure you have your chart setup right as above for the Balanced system strategy to work. You can download all indicators below. For better results make sure you do NOT trade at least 30-60 minutes before major news releases. Also make sure if you still have open order when major news is about to hit make sure you set your BE and SL appropriately.

We will be entering BUY orders only if PA is above EMA 200 or SELLing orders only if PA is below EMA 200. First sign to enter the order is when EMA 5 crosses EMA 10. If it crosses above then BUY orders should be considered. If it crosses below then SELL orders should be considered. For confirmation you should always check RSI that for BUY orders RSI is above 50 and for SELL orders RSI is below 50. Second confirmation is Stochastic that its moving up and should be below 80 for BUY order or Stochastic is moving down and it should be above 20 for SELL order.

Balanced System Strategy Entry Rules:

  • if PA is above EMA 200 then consider only BUY orders if its below EMA 200 then consider only SELL orders (if EMA 5 and EMA 10 and EMa 200 are really close together consider skipping the signal even if all other signals are good to go.
  • if EMA 5 (green) crosses above EMA 10 (orange) after candle close this is our first confirmation signal for BUY order if EMA 5 (green) crosses below EMA 10 (orange) you should consider SELL signal
  • for BUY order RSI is ABOVE 50 and for SELL order RSI is BELOW 50
  • for BUY order Stochastic needs to be going up (raising) and needs to be below 80. For SELL order Stochastic needs to be going down (dropping) and needs to be above 20.

If all above conditions are meet you can enter either BUY or SELL order based on your signals Balanced System Strategy will work only if you follow all of the above steps.

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SL should be set below previous swing low or swing high. Second option is to set SL below 200 EMA.

Please note:

  • DO NOT Trade at least 30 minutes before major NEWS is scheduled!
  • If EMA 5, EMA 10 and EMA 200 are close together wait for a better signal
  • DO NOT trade if EMA 5 does NOT cross EMA 10 so that its clear that it crossed!

Balanced System Strategy Exit Rules:

  • Exit BUY trade if EMA 5 crosses below EMA 10 and exit SELL order if EMA 5 crosses above EMA 10.
  • Exit any trade if you think PA will move against you due to a Support & Resistance levels. Better take some profits then no profits.

Balanced System Strategy Template

Download 2.63 KB 249 downloads
File
balanced-system-strategy.tpl

MMA Colored Indicator for MT4

Download 2.69 KB 1147 downloads
File
MMA COLORED_V3.mq4

P4L CandleTime.mq4

Download 16.48 KB 17608 downloads
File
P4L CandleTime.mq4

How to install Bollinger Bands Strategy Template in MetaTrader 4 / MT4:

  1. Download/Copy/Save the TPL file into your C:\Program Files\MetaTrader 4\templates folder (or change the folder to your installation sometimes forex broker name)
  2. Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
  3. Open the Template with Charts/Template
  4. Locate the Template which you have just downloaded into the folder stated in Step 1
  5. TADA and your done!
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