Introduction Of RBA Trading Strategy:
To all traders, this thread is dedicated to a developing project the community (Robots4Me et al) have been working on. This thread is not for newbies. We will not entertain newbie questions. Make sure you have strong money management skills before you try this out. The market is unpredictable and it can swing against you by a thousand pips. This thread will only help you to identify buy and sell zones. It is not a magic method to become wealthy.
Time Frame : H1 and H4.
He worked tirelessly to develop the indicators and EA. The rest of the community have been testing and giving quality feedbacks.
Purpose of RBA Trading Strategy:
The purpose of this thread is to use the tools, and provide inputs for developing the tools to finished product. Market situations may change and the method may fail. So be careful. I am not here claiming to know everything or to have spent 1 million hours of screen time. Share your inputs and let’s grow together in knowledge. All ideas are welcome.
Trading RBA Strategy
This strategy is built around the behaviour of price around midline of a centred TMA. Anyone that can code should be able to do this easily. Grab a centred TMA and follow the following steps:
Draw the center line of the centered MA (NIH Centered TMA, Interpolate = false, W1, half length = 1)
Mark the ADR distance from the midline
Check if the daily candle pokes and closes above the ADR from the midline (Check this at end of day)
If step 3 is true, trade towards the midline
Repeat step 1-4 once everyday at end of day (open of new daily candle)
SL: x% of ADR distance from trade open price (I prefer 200%
Entries: Don’t put all your eggs in one basket:
1 You can scale in your trades as the signals show (Avoid LTF)
2 Split your lots into pieces. For instance if all you want to put in to a trade cycle is 0.1, then split to 0.1/6 = 0.016 (pls is this even possible? Pls let me know of a good broker who can offer small lots)
3 As each signal appear, take the trades at (Expected total lots/6)
4 Set stop loss as 100% ADR. Each trade with it’s own stop loss. The chances of price dropping another 100% ADR before retrace to midline is really small. Less than 5%. Would probably happen on black days (market crashes). Our stop loss will save the day
5 Take profit at the midline
Mobile stop loss and take profit
1 We will have both hard stop loss and visual stop loss. Same for take profit
2 Hard stop is the one set at the beginning of trade which ideally shouldnt move.
3 Visual stop is the one the EA will execute based on price vs opposite bands and midline
4 At the start of new week, new lines gets drawn.
5 Here is the trick. The midline could immediately become a visual stop loss.
6 If the midline is now below or above the price, ideally, we hope price will continue moving in our favour. However, if price reverses back to the midline, we get out of the trades. That’s not a really good sign.
7 The midline is our knife edge. If price touches the midline, either in profit or loss, exit
8 Alternative approach is to use the opposite band as exit. In a buy trade, the upper band is exit. In a sell trade, the lower band is exit. Anytime price touches the bands, relative to the position we are trading (buy or sell), we exit
9 Our stops and TP are therefore mobile and dynamic, responding to price movement and market structure.
10 However, the stop loss placed at the beginning of the trade shouldn’t move (I prefer to leave it there. I already estimated my risk before taking the trade anyway)
1 I wouldn’t trade beyond 0.01 if I don’t have at least $10,000 on at least 1:100 margin
2Best, switch to a cent account. You will get enough room to play around
1Make trade spacing selectable. This is the distance between trades. We don’t want to cluster all our trades on around the same price.
2 This will provide some relief when we are in the grief of a falling knife.
3 Trade spacing is defined by pips and should be a % of the ADR
4 So if ADR is 100 and I am using a trade spacing of 25%, it means that I will take the next trade signal only if the signal appears at least 25 pips below the last trade.
5 So trade spacing is based on pair ADR characteristics.
I don’t have a crystal ball
So I don’t know if this strategy will be profitable.
But general rule of thumb and experience shows we might make more than we will loose if done correctly
What the strategy isnt
It is not a holy grail
It is not a crystal ball
It is not a get rich quick system
RBA Trading Strategy Results :
H1: ADR 50% (SL 1.2 TP 0.4; Max trades=4)
H4: ADR 100% (SL 2.5 TP 1.0; Max trades=2)
A big change, this week:
Use Market Watch for pairs to trade= false;
Pairs To Trade:
The reason is simple: I had a DD of almost 20% the first week, and the same the second week. I want to try to reduce the risk of a large DD. Sure, I will have a minor gain. But that’s the point: if I’m right, with a controlled, low DD, in October I will raise the Max Trades to 5 or 6. In the future, I will watch to raise my lots from 0.01 to 0.02. If I’m right…
All depends from the DD in the next two weeks…
I’m using the system on a real account. It was 700 euros, now 850 (+20% in 2 weeks). That’s because I want to feel the fear to lose everything, and to use my experience to avoid that. I closed 6 trades manually. Probably, it was better let them run again. But the risk of a larger DD was too high. So, no regrets.