15 Minutes Trading System «Deduction»
Every trader has his own approaches and trading styles. According to these preferences he makes his choice of optimal parameters of trading. Among the main approaches online investors distinguish the frequency of expiration of contracts. However, fixating on one range, investors loses a lot of excellent opportunities to make a profit. To change the situation users need to have several systems in their arsenal that can generate signals for contracts with different repayment range.
In this article we offer to get acquainted with the system «Deduction», designed for operations on the market contracts with 15-minute repayment. This can be a great step to create your own highly effective arsenal of trading systems (more than 350 ready-made strategies), necessary for every professional trader.
System operating principle
The algorithm for generating signals of strategy «Deduction» is based on the several trend forecasting services with a variety of approaches to the assessment of market indicators, as well as the insurance oscillator, which is necessary for effective filtering of technical market noise and the indicator of the main services of the strategy analysis. Using this combination of forecasting tools, we are able to generate forecasts in a very simple and effective mode for processing trading positions.
So, let’s set up the chart. To do this, we take quotes of a highly volatile asset, switch them to the technical mode of construction M1 and install the following services for calculating and evaluating of the market indicators:
- Trend Trader Strategy – this technical service is based on an improved algorithm for calculating of moving averages using a filter of technical market noise. Thus, we get more smoothed indicators on the asset chart with a clear reaction to the trend fluctuations of the asset price.
- TOPIC 1 is a classic moving in the construction mode Triangular, its work allows you to build a system of tools on the asset chart to generate signals for trading. The combination of two trend services on the asset chart allows you to maximize the accuracy and effectiveness of the strategy signals.
- Premier Stochastic Oscillator – this technical tool is an improved version of the classic Stochastic. Here is added an algorithm for estimating trend fracture zones and is used a wider range of indicators to generate indicator signals.
Please note that such forecasting tools are not offered directly on the trading platforms for fixed-term contracts. To use the trading system «Deduction» you will need an additional resource in the form of a service of live charts. You can use this type of online service that is convenient for you. We recommend you to work on a professional website tradingview.com to assess the financial market. After setting up your work chart on the specified service, it will get the following layout format:
System operating conditions
- Optimal timeframe for evaluation – we offer you to evaluate the minute chart of the underlying asset, as this is the most convenient period for the formation of accurate trading signals with the help of services. In addition, working on this market range, you get the opportunity to engage in dynamic trading of fixed-term contracts.
- Underlying asset for trading – when choosing a trading instrument, take into account the direct format of signal generation by the system instruments. The fact is that the system services respond very well to medium-term trends and form signals very poorly in nervous markets. For this reason, use assets with an average level of volatility in trading, so you can get the maximum number of successful contracts.
- Optimal system operation time – it is recommended to use the system during the main world trading sessions. We warn you that during the volatility outbursts associated with the release of macroeconomic news and statistics, the strategy may show a decrease in the effectiveness of signals.
- Expiration of trading positions – this indicator can vary significantly during the operation of the system. In classic mode, it is recommended to use positions with a repayment range of 15 minutes. The expiration range can be changed in order to increase trading performance and dynamics of trading operations – use 5-minute contracts and work with series of trades.
- Money management – for safe strategy application use the standard risk parameters – not over 5% of the trading funds volume.
- Trading terminal selection – the system uses a third-party technical resource to generate forecasts, so any platform can be used for trading operations in this analysis mode. We suggest that you test the strategy on a small deposit; it could be $10 or $50 by such brokers like Binomo (site) or Olymp trade (site).
We open positions for price growth receiving the following combination of indicators of strategy technical tools:
- On the technical chart there was an intersection upwards of the technical tool Trend Trader Strategy level (blue line) by the moving indicator TOPIC 1 (red line).
- The line of the trend oscillator Premier Stochastic Oscillator crossed the technical level of the scale with the upward dynamics.
We open positions for price drop receiving the following combination of indicators of strategy technical tools:
- On the technical chart there was an intersection downwards of the technical tool Trend Trader Strategy (blue line) level by the moving indicator TOPIC 1 (red line).
- The line of the trend oscillator Premier Stochastic Oscillator crossed the technical level of the scale with the downward dynamics.
The extensive strategy application in forward trading allows achieving the capital growth dynamics within a trading day on the level up to 100%.