3 Parameter Strategy

2022年8月23日

3 Parameter Strategy is a very powerful strategy based on 3 indicators.

This strategy works best with Daily Candlestick Charts
It can be traded with different styles of entry and exit.

Instruments

• Futures

• Cash

Indicatos Used:

• Bollinger Band

• MACD

• RSI

2022年8月23日

註釋

Strategy Rules

All 3 parameters must be matched for the Bullish as well as Bearish moves.

Bullish (Buy Trade)

• Bollinger band must be squeezed as compared to the previous band width and the candle must be closed with the breakout of the upper band. The breakout must be genuine when the upper band cuts through the body of the candle.

• MACD has a bullish crossover of the range or at the point of the signal candle.

• RSI must be greater than 60. (RSI > 60)

Bearish (Short Trade)

• Bollinger band must be squeezed as compared to the previous band width and the candle must be closed with the breakdown of the lower band. The breakout must be genuine when the lower band cuts through the body of the candle.

• MACD has a bearish crossover of the range or at the point of the signal candle.

• RSI must be less than 40. (RSI < 40)

2022年8月23日

註釋

Trading Rules

• Enter at the open price on the next trading session.

• Stoploss for aggressive traders: Low of the signal candle on closing.

• Stoploss for positional traders: Below to the 20 periods of simple moving average on closing.

• Method1: Exit on the 3rd trading session at closing.

• Method2: Exit with the trailing stoploss.

Futures:

• Set a target of Rs 15000 and place a stoploss of Rs 5000

"Never let a winning trade end in loss"