Trading System «Luster»
Traders are offered a huge number of trading systems on the Internet today, but among them, you can find a few strategies that can boast up to 87% of successful trades. Such systems are usually used by professional traders because of their complexity in many regards. Today we want to offer you a highly efficient method of analysis, which is based on the simple principle of the combined use of regular indicators.
The Luster system is a technique that will enable any newcomer to receive productive contracts. Using this system, you will have a professional strategy with the simplest possible format for generating forecasts for trading futures contracts.
Configuring strategy services
The technical algorithm of the Luster system is based on the use of combined analysis services, capable of clearly determining the price levels of market fluctuations, where new trends are emerging. Dealing with contracts in this mode is the most optimal approach for work in the derivatives market. To use the trading system, we need a high-tech resource of live charts. For this purpose, you can effectively utilize the site tradingview.com. Using this resource, you will be able to apply all the necessary indicators in your trading, in addition to high-precision liquidity charts of the underlying assets.
So, let’s get down to setting up the system template. For this purpose, you should choose the most convenient trading tool for you. You need to switch its chart to the M1 time frame and set the following list of indicators on the chart:
- Ichimoku EMA Bands – for experienced traders, the very name of this analysis service says a lot. That’s a combined tool for evaluating a large amount of market data. It uses the principles of calculating signals and market indicators, which are used in the work of the classic high-precision indicators: the Bollinger Bands, the exponential moving average, and the trend service Ichimoku. Thus, we get an indicator with several forecasting algorithms at once, which greatly increases the overall quality and effectiveness of our trading forecasts.
- AO – B. Williams classic oscillator is an excellent tool for filtering spurious indicators and expanding estimated data. The use of such a tool in the strategy allows you to more accurately determine the points of entry into the market
- Price Oscillator – this service will be required as a tool to assess the medium-term market trend, observed at the time of execution of contracts. Thus, we will be able to effectively adjust the strategy’s work and execute the most efficient contracts
Having set up the chart, we will get the following markup:
System application conditions
- The optimum timeframe: when setting up the template, we offered you to work on the asset’s minute chart because it’s the most optimal in terms of dynamics of trading operations and the effectiveness of the signals received the market valuation period. However, you can use other ranges from M5 to M15. When working on other frames of the liquidity chart, it will be necessary to make changes in the expiration of trading positions.
- The trading asset: the system shows excellent results when working with cryptocurrencies and fiat currency pairs. In addition, you can achieve decent results with commodity assets. In general, in this regard, the system is quite universal.
- The trading time: the technical algorithm of this indicator system is designed to identify long-term trends, which are normally formed during the period of maximum activity of asset price fluctuations. Therefore, we recommend using the system in the range of the main daily sessions.
- The contract expiration: this technical trading period is calculated depending on two main indicators – the current volatility of the asset price movement and the working chart timeframe. When working on M1, it’s recommended to use trading positions with the redemption of no more 15 minutes.
- Money management: in this case, the standard set of restrictions is proposed as the optimal risk regime: the maximum amount of risk is set at 5% of the total amount of your capital.
- Trading terminal: the test of the strategy has shown that the highest performance is ensured by a professional service for urgent trading from Binomo (site).
To open a long position, you need to have the following signals:
- The Price Oscillator service for assessing mid-term market indicators points to the development of an uptrend.
- On the technical chart, the price has broken the average level and the Ichimoku cloud upwards, with the EMA line changing its color to blue.
- The AO histogram has surged above the zero level of its scale.
To open a short position, you need to have the following signals:
- The Price Oscillator service for assessing mid-term market indicators shows the development of a downward trend.
- On the technical chart, the price has broken the average level and the Ichimoku cloud downwards, with the EMA line changing its color to red.
- The AO histogram has fallen below the zero level of its scale.
Using such a simple algorithm for generating signals for trading, any investor, even an inexperienced one, will be able to maximally increase his trading deposit.