Poker strategy - for those who do not have time to trade
Hello ladies and gentlemen, Forex traders!
Today we’ll talk about a trading system called Poker. The system is suitable for those who, first of all, have a limited amount of time for trading due to certain circumstances, since trading will be conducted on weekly charts.
The strategy is already gaining considerable popularity on our forum, so I decided that it would be useful to introduce the portal audience to it.
Currency pairs: any
Trading time: around the clock
Recommended brokers: RoboForex, Forex4You, FortFS
The idea behind the strategy
First of all, we express our gratitude to the author of the strategy with a nickname Old Oleg for sharing system rules on our forum. Earlier, we already considered Spring TS from the same author. Strategies are generally similar, so they can be combined in one account.
I never tire of repeating that any idea should be the basis of any strategy. If you simply trade when one arrow of the indicator crosses the other, the logical question arises - on the basis of what are you actually trading and what is the basis of the analysis. The basis should be a solid idea - some kind of market inefficiency, fundamental component or something else.
In this strategy, the basis is pretty simple. As you know, after strong movements there are always kickbacks. Not a single trend goes continuously and straight up or down, otherwise everyone would earn on the market, just have time to buy or sell.
There is always such a plot where, it would seem, the price goes smoothly. But, if you pay attention to the tails, and these are weekly candles, it turns out that these are actually pullbacks of 150-300 points and more. That is, even on such beautiful and even trends that are not so often, there are still pullbacks. Kickbacks are the result of any strong movement.
Our task is to wait for the pair to be in the overbought / oversold zone, that is, it will be ready for a pullback, and enter the market in its direction.
Preparation for work
First, open the weekly chart of any currency pair. Unless, in this case, I would recommend refraining from cryptocurrencies - slightly different rules work there, and so far no one has checked the operation of the system on crypto thoroughly.
Next, we need to install on the chart just one indicator - Williams' Percent Range. You can open the indicator in the MetaTrader 4 terminal through “Insert” - “Indicators” - “Oscillators” - “Williams' Percent Range”.
An important point: we will need two instances of the indicator. For the first, set period 3. We need to install the second indicator on top of the already established one. To do this, in the Navigator window, find the same indicator, Williams' Percent Range, and drag it into the same window. The period of the second indicator is 6.
It looks something like this. After that, you can save the template, and then on other pairs just load the template with indicators already configured.
So, at the weekend we look at the weekly chart of each currency pair and the readings of the WPR indicator. We are looking for an indicator formation resembling a poker - a straight line with a bend. The angle of the bend itself does not matter - it can be even sharp, even blunt. If this condition is not met, then at least one of the two lines must be in the overbought / oversold zone. In other cases, we do nothing with the pair.
Next, we look at the type of the last candle - it should be the opposite of the direction in which we will open. That is, a bullish candle for sale, a bearish candle for purchase.
The perfect setup to buy:
- The poker is bent up on both indicators;
- Or both lines of the indicator are in the oversold zone;
- An explicit bear candle (not a doji) is formed on the chart.
Perfect setup for sale:
- The poker is bent down on both indicators;
- Or both lines of the indicator are in the overbought zone;
- An explicit bullish candlestick is formed on the chart.
You can enter the market even if only one of the indicator lines meets the entry conditions. If the lines are in the overbought / oversold zone, the presence of a poker (bend) is not necessary. You can also enter if the signal candle does not have a clear focus - a doji or a candle with a minimum body. In this case, we do not pay attention to the color of the candle.
Like Spring, this strategy does not imply the use of stop losses. To take profit, the author recommends setting a fixed take profit of 50 points. Alternatively, you can simply close all transactions at the end of the week or upon reaching a certain percentage of the deposit. To do this, you can use a special adviser or script that will close all transactions on the account after reaching a certain percentage of profit. In general, all position tracking software can be viewed in this section of the forum. If you get lost there - that is, an alphabetical catalog from which you can go to the topic of any assistant adviser.
Since stop loss is not used in the strategy, money management will be conservative. We give the price the opportunity to walk, that is, to go quite far, but since the lot size is quite small, nothing bad will happen.
The risk for a deal here is the same as in the Spring strategy. That is, 0.01 lots for every 3000 units of deposit. Accordingly, if you have a standard account of $ 3,000, the volume of the transaction should not exceed one hundredth of a lot. An analogue will be a cent account for $ 30 (3000 cents).
For clarity, below we have compiled a table with the sizes of the lot, deposit and the corresponding type of account.
|Account type||Minimum lot and lot step||Min starting deposit||Brokers Examples|
|Cent (with mini lots)||0.01||$ 30 (3,000 cents)||Forex4you|
|Cent||0.1||$ 300 (30,000 cents)||Roboforex|
1) If the transaction did not work out during the whole week, then we look at the position of the price relative to our entry:
- When the drawdown is less than 50 p., We do nothing, we are waiting for development;
- If the drawdown is more than 50 pips, we look at the presence of a repeated indicator signal and, if necessary, open an averaging order. We set the take 10 points above the breakeven level.
2) It is best, of course, not to blindly average when the drawdown appears, but to look for confirmation of the signal, going down to the daily chart. That is, we open D1 and wait for the signal to appear in the same direction.
3) Also, some use the daily chart as the basis for trading. There are a lot of signals and they completely work out themselves.
4) If, at the end of the week, major news is expected, and we already have some profit, it is reasonable to close all positions in order to avoid unnecessary risks.
5) If there is a gap in the direction of opening an order, then we either cancel the entry or trade the gap. It is useful not to enter on Monday, but on Tuesday - since at the start of the week the price often moves against us. Therefore, if for some reason you missed a deal on Monday, you can enter on Tuesday.
6) My personal opinion is to forget about averaging and just close the whole bunch of orders at the end of the week. Profitable and little risky.
The setup is actually simple, but for a better understanding, I advise you to read the original branch of the strategy, where, among other things, the author uploads detailed video reports with examples of transactions. The videos are laid out every week - in them the author talks about transactions that are already closed and about deals for the next week, which, in his opinion, are worth taking into account.
The most difficult thing is to learn how to quickly determine the very “poker” on the chart. In fact, the setup consists of only two components: a line bent in the direction of the position, and candles of the opposite direction. In this example, if we set a take profit of 50 points, all transactions would be in profit.
For example, an almost perfect setup, when both lines are in the overbought zone, and the candle has a clear bullish character - you can consider the entries for sale.
The same thing here - indicators in the overbought zone and a clear white candle.
This is important, because if we see a poker and a candle of the same orientation, we don’t enter the deal.
When the color of the candle is difficult to determine (for example, doji, hammer, etc.), a specific color can be ignored. Such a candle means uncertainty, which is actually what we need.
Also, you can enter a deal when only one of the lines is in the overbought / oversold zone. In this case, we have a blue line in the oversold zone and a bearish candlestick - you can enter to buy.
But, best of all, when both lines comply with the entry rules, as in this example, the price is in the oversold zone + has a bend resembling a poker.
The strategy is very simple, does not require much time and is already very popular on our forum. So study the author’s branch of the strategy, watch video reports - everything is learned in practice and nothing else!