Optimum Long Light Forex Trading Strategy

It is always cool to start out your forex trading career by implementing a trading setup that comprises of entry and exit signals.

Although, there are chances of you coming in contact with numerous trading strategies once you delve into the online trading world, but sticking to the ones that suited to your skills the most is key.

The Optimum Long Light forex trading strategy, although not immune to losses, does generate profit quickly, thereby allowing you make significant profits.

The my_squeeze_Light, GMMA_Long and i-AMA-Optimum custom MT4 indicators are carefully incorporated into the system to allow for quick gauging of price volatility, spotting of changing trend and price smoothening respectively.

Chart Setup

MetaTrader4 Indicators: my_squeeze_Light.ex4 (Default Setting), GMMA_Long.ex4 (Default Setting), i-AMA-Optimum.ex4 (Default Setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Optimum Long Light Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If the black dotted orange line of the i-AMA-Optimum custom indicator intersects the blue GMMA_Long indicator line in a bottom up fashion, with price trading somewhat higher (see Fig. 1.0), a buy signal is said to be in place.
  2. If the lime and somewhat blue histograms of the my_squeeze_Light custom indicator form above the 0.00 level as depicted on Fig. 1.0, it is a signal to go long on the stipulated currency pair.

Stop Loss for Buy Entry: Place stop loss below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If while a buy signal is ongoing, price is seen to close below the black dotted orange line of the i-AMA-Optimum custom indicator, an exit or take profit is advised.
  2. If the my_squeeze_Light custom indicator forms a histogram (blue/red) below the 0.00 signal level, price is said to be making a bearish reversal, as such an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the black dotted orange line of the i-AMA-Optimum custom indicator intersects the blue GMMA_Long indicator line in a top downward manner, with price trading fairly lower (refer to Fig. 1.1), a sell signal is said to be in place.
  2. If the red and rather blue histograms of the my_squeeze_Light custom indicator form below the 0.00 level as shown on Fig. 1.1, it is a signal to go short on the forex pair of interest.

Stop Loss for Sell Entry: Place stop loss above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If while a sell signal is running, price is seen to close above the black dotted orange line of the i-AMA-Optimum custom indicator, an exit or take profit is recommended.
  2. If the my_squeeze_Light custom indicator forms a histogram (blue/lime) above the 0.00 signal level, price is said to be making a bullish reversal, as such an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

Download the Optimum Long Light Forex Trading Strategy

About The Trading Indicators

The GMMA_Long.ex4 indicator is a variant of the Guppy Multiple Moving Averages (GMMA) and is deployed in spotting changing trend, via a method that combines two groups of moving averages with varying time periods.

The i-AMA-Optimum.ex4 indicator is an optimized version of the Kaufman’s Adaptive Moving Average (AMA) that was originally developed by Perry Kaufman and finds use on short and long periods.

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