Thursday, November 18, 2010

Koala Forex Trading System

Koala forex system is an easy forex method, even for a beginner in forex trading can also do this forex method. Koala forex strategy based on trend follower sytem, using several indicators of Moving Average. This method will prevent traders to enter the market against the market trend and increased their success in forex trading.

Now let us see how to do the settings in your metatrader. And rules should you do for this forex strategy that can bring you to success in forex trading.


1. Deploy 3 Moving Averages indicator on the chart. Parameters are
  • Smoothed
  • Applied to Median Price ( High + Low / 2 )
  • Period of 3 ( Red ) , 6 ( Green ) , 9 ( Blue )

These  3 Moving Average give us our primary indicators.


2.  Next deploy 2 moving averages on the chart. Parameters are

First Moving Average:
  • Exponential
  • Applied to Closing Price
  • Period of 200 ( Black )

Second Moving Average

  • Smoothed
  • Applied to Median Price ( High + Low / 2 )
  • Period of 50 ( Brown )

This two moving averages will serve as our secondary indicators.


Koala Forex Trading Rules

While you can use any value for your stop loss and take profit, in view of proper risk and reward ratio and money management, recommended sets are

  • 30 SL 30 TP ( Normal )
  • 50 SL 50 TP ( Challenging )
  • 30 SL 50 TP ( Very challenging )

The more challenging the values are, the more precise your entries should be.



Buy or sell opportunity will surface when

  • Primary indicators becomes parallel towards the direction of the trade
  • Brown secondary indicator is in the same direction and is not turning in towards the primary indicators. This functions as an immediate support or resistance warning too as the price often react to the moving average
  • Black secondary indicator is not near the price action and hence not a potential strong support or resistance

    Koala Forex Trading System


    Exceptional conditions

    As the system relies heavily on trends, there are certain market conditions that will affect the performance of the system greatly
    • Low trading volume conditions resulting in no trends
    • Excessive flipping of the price action due to volatility
    • Major economic events resulting in unexpected spikes and momentum
    • A major support and resistance / trend line is not in the immediate region of the momentum.

    Learn More abot Forex strategy at www.babypips.com

      2 comments:

      1. I would like to suggest that you pick the most recommended Forex broker: eToro.

        ReplyDelete
      2. Forex trading is much more easier when its traded on auto-pilot and EA Builder allows you to create your own free forex robot.

        ReplyDelete