Really easy strategy which you can master with just the basic knowledge. It provides really good risk / reward output and Keltner Channel Strategy gets really high winning rate.
- TimeFrame: 5 min
- Symbol: any major currency preferred EURUSD, GBPUSD
- Risk: MAX 2% of account equity per order
- Keltner Channels Indicator set to 40 Periods
- Exponential Moving Average set to 8 periods
Keltner Channel Strategy Overview:
When you have the chart setup with Keltner Channel Indicator and Exponential Moving Average you are all set to go. You should use this strategy only on 5min timeframe. As well as you should have a good Broker with really small spreads like HotForex. Once you are all set you watch the market and wait for the EMA to be inside the Keltner Channel. Now you wait for the PA (Price Action) to move outside the Channel and then wait for EMA to break the Keltner Channel which should happen right after PA. Once EMA has broken the channel you should SELL (if channel is broken downside) and you should BUY (if channel has broken to upside).
Keltner Channel Strategy entry and exit rules:
- BUY order should be placed when EMA crosses upper Keltner channel
- SELL order should be placed when EMA crosses bottom Keltner channel
- SL (Stop Loss) should be set right on the middle of Keltner Channel Indicator
- TP (Take Profit) Option 1: should be fixed at 10 PIPs. (remember you are on 5min chart)
- TP (Take Profit) Option 2: you can set BE (Brake Even) when you reach 10pips profit and let the profits run. Exit the trade when Price Action hits back the Keltner channel or you can use Support & Resistance lines for your exit.
Usually this will get you 1:1 or 1:2 risk / reward return which is good.
How to install Keltner Channel Strategy Template in MetaTrader 4 / MT4:
- 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)
- Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
- Open the Template with Charts/Template
- Locate the Template which you have just downloaded into the folder stated in Step 1
- TADA and your done!