JAR Forex Strong trends Trading Strategy

Forex trading strategy Jar works in the best way for strong trends. However, that does not mean that it is impossible to get profits with this forex trading strategy from sideways ranges, as fewer entry signals appear due to additional filters. MetaTrader 5 platform is recommended for this forex trading strategy.

How to use Jar Forex Trading Strategy?

Statistics tell that Jar forex trading strategy showed overall profitable performance with 1160 pips gained (four-digit quotes). The test period was for year-long starting from August 2017. Although, the overall number of deals was not huge, around 50 only. The maximum drawdown did not exceed 160 pips.

The most effective timeframe to trade on using this strategy is one-hour. Currency pairs can be different, but we tested the strategy on GBP/AUD currency pairs as this cross-rate is vulnerable to strong trend action.

Indicator to use:

• Exponential Moving Average with 130 period (EMA130);
• Bollinger Bands indicator with the period 20 bars and deviation 2;
• ADX indicator with the period 14 and additional level 20.

Conditions for LONG positions, according to ‘Jar’ forex trading strategy are as follows:

• The green ADX line has to be above 20 level while buying;
• The current price has to be above the moving average;
• Bollinger Bands indicator central line has to be above the moving average;
• The price has to get above the upper line of the Bollinger Bands indicator, after the next candle touches or crosses the middle line from downside up;
• The LONG position is opened on the next candle;
• The stop-loss order has to be set for 40 pips;
• The deal has to be set in non-risk mode after going 40 pips in the positive direction;
• The take profit-order is equal to 140 pips.

Conditions for SHORT positions, according to ‘Jar’ forex trading strategy are as follows:

• The green ADX line has to be above 20 level while selling;
• The current price has to be below the moving average;
• Bollinger Bands indicator central line has to be below the moving average;
• The price has to get below the lower line of the Bollinger Bands indicator, after the next candle touches or crosses the middle line from upside down;
• The SHORT position is opened on the next candle;
• The stop-loss order has to be set for 40 pips;
• The deal has to be set in non-risk mode after going 40 pips in the positive direction;
• The take profit-order is equal to 140 pips.