Let's continue the analysis of the TS "Big E" and find out:
- What tools does it include and how to correctly set these tools on the chart?
- What signals do they give to enter the market, when and what trading position should you open on these signals?
- How to take profit correctly.
By the way, if you are already familiar with this strategy or trading using its indicators, write about the results of your trading on them in the comments to this article. I think it will be interesting not only for me, but for all our readers.
Trading tools TS "Big E"
The system uses only four tools. I think that each of them individually is well known to you. All of them are present in the standard MT4 toolbox, except for one, and are installed on the chart in the usual way - via the Navigator or the Insert menu located on the MT4 Toolbar. In our case, we will use the Navigator and sequentially set them all on the chart. You can download the missing indicator along with the strategy template from the link at the end of the article.
- Heiken Ashi candlestick indicator
Go to the terminal, open the "Navigator" window, find the "Heiken Ashi" tool and drag it onto the chart with the mouse. You don't need to change anything in its settings, we leave all its settings by default. This is how this tool will look on our chart:
Figure 1. View on the chart of the "Heiken Ashi" instrument
- TDI indicator (8, 3, 3)
Take out the “TDI” tool through the “Navigator” window; it will be located in its “basement” window. You can see how it looks on the graph in the figure below:
Figure 2. "TDI" indicator in the MT4 terminal window
- Stochastic indicator
And this time, using the Navigator, we pull out the Stochastic indicator we need. We also leave all the parameters of its settings by default, but you can change the color rendering of its curves at your discretion
Figure 3. "Stochastic" indicator in the MT4 terminal window
- EMA 5
We use the same “Navigator”, but this time we are looking for the “Moving Average” tool and pull it out on the chart. The moving average curve will be placed in the price chart window. In the window that opens its settings, you need to change some parameters. You can also customize the display style of this tool's curve:
Figure 4. Curve of the "Moving Average" indicator in the MT4 terminal window
You and I have just sequentially installed all the indicators required to trade the Big E strategy. Before studying signals from all these instruments, I will say that we will work according to the rules of this strategy:
- With the EUR / USD currency pair;
- On the H1 timeframe.
Next, we will look at the signals and trading rules for this strategy.
Trading signals "Big E"
So, let's start studying the Big E trading signals, they are quite simple and straightforward.
For a trader to open a Sell position, the following conditions must be met on the chart:
- The green curve of the "TDI" indicator from top to bottom crosses its red curve.
- Curves of the "Stochastic" indicator should be directed in the same direction as the curves of "TDI" - in this case, the curves of both instruments are directed downward.
- The red Heiken Ashi candlestick closes below the moving average. This is a signal to open a sell position - when it closes, we enter the market.
When all these conditions are met, the trader enters the market by opening a Sell position:
Figure 5. Big E signals for entering Sell
In fig. 5, you can see that all the necessary signals have been received from the indicators, and they all lie almost on the same vertical line - this is a good sign for opening a sell position.
Signals for a buy trade
When opening a Buy position, a trader must make sure that the following conditions are met on the chart:
1) The green curve of the "TDI" instrument crosses its red curve from bottom to top.
2) Curves of the Stochastic instrument are directed upwards, as well as the curves of the TDI indicator.
3) Closing of the blue Heiken Ashi candlestick is above the moving average. This is a signal to open a buy position - we enter the market at the beginning of the formation of the next candle.
Are all conditions met? We open a Buy position:
Figure 6. Big E signals for Buy entry
Fig. 6, you can see that all received buy signals lie on the same vertical. This is a powerful signal for the trader to enter the market with a buy at the formation of a new Heiken Ashi candle.
Profit taking according to the rules of "Big E"
There are no clear or specific rules for closing deals in trading using this strategy. I did not find any clear recommendations in the discussion thread of this strategy, so I offer you my options for taking profit:
- Stop Loss and Take Profit. I set Stop Loss beyond the local minimum / maximum. Take Profit, I think, can be set at 20-25 points, not forgetting about the possibility of closing at breakeven.
- I also recommend closing the deal after receiving an opposite signal from the TDI indicator or when its curves fall into the oversold or overbought zone. However, even in this case, you should take into account some of the nuances of price behavior and indicators.
Let's consider a specific situation using the example of a buy entry:
Figure 7. An example of trade when entering the market by Buy
So, in fig. 7 that we have opened a buy deal with the EUR / USD pair at TF H1. The entry was made in accordance with all the rules of the Big E strategy, and we will now consider the exit from the deal in more detail:
Entry price = 1.1455
Close price on pullbacks:
- 1st rollback = 1.1510; profit is (1.1510 - 1.1455) = 55 p.
- 2nd rollback = 1.1535; profit is (1.1535 - 1.1455) = 80 p.
- 3rd pullback = 1.1562; profit is (1.1562 - 1.1455) = 107 p.
- 4th pullback = 1.1573; profit is (1.1573 - 1.1455) = 118 p.
- 5th pullback = 1.1603; profit is (1.1603 - 1.1455) = 148 p.
Closing this trade at one of the Stop Loss would have yielded less profit. On average, by 10-20 points at each pullback, provided that the transaction is transferred to the breakeven in a timely manner. In this case, we did not use Take Profits, but accompanied the deal, since we were interested in the greatest profit.
So we have completed the review of the Big E strategy, if you liked this strategy, write us about it in the comments.