Kung fu vs Robot 008: soft lines against iron profits

Kung fu vs Robot 008: soft lines against iron profits

Kung fu vs Robot 008: soft lines against iron profits

Sooner or later in the life of any trader, there comes a disappointment in their trading strategy – it does not work, or it works, but not as effectively as we would like. Familiar? The trader begins to look for something more unusual. Especially for fans of interesting new products, we have prepared something exotic. What exactly – read our article.

Today we will analyze the trading system "Kung fu"- the author's trend strategy from the popular American forum forexfactory.com. We will look at the system, try to understand how effective it is, and – most importantly – compare the trading approach of this strategy with the approach embedded in our 008 robot. If you want to see the presentation of the new strategy online, watch the recording of our broadcast below. During the lesson, you will learn all the features of the Chinese strategy, which distinguish it from a number of others that can increase the Deposit! At the end of the lesson, we will decide together whether to write a robot based on this strategy.
So, let's first remember the working principle of the 008 robot: its main idea is to fight off the boundaries of the price channel. An example is the Bollinger channel.
As you can see, we work on the principle of breaking away from the channel, selling when the upper border of the Bollinger band is touched and buying when the lower border is touched. The most difficult thing is to choose the correct option for tracking the position. Best of all, it works out a fixed take profit and stop loss or closing on the opposite border of the channel.

You can learn more about the work of the 008 expert Advisor here.

What can be a trade using the 008 robot in a conservative style:
For 5 incomplete months, $ 500 to $ 1000 was made – this is 10% per month with a maximum drawdown of 12%, and this is only for one currency pair GBP/CHF.

And what can be the result with aggressive settings:
As we can see, with aggressive settings, you can triple your Deposit over the same period, with drawdowns of about 40%.

Kung Fu strategy, on the contrary, is based on breaking through the author's direction indicators, in contrast to the 008 robot, where we fight off the boundaries.

Let's take a closer look at how it works. I will immediately note that the strategy is author's, and we act as intermediaries, just translating it for you.

Trading is conducted only on the USD/JPY pair. If the spread on the CAD/JPY pair is less than 2, then you can try it, but USD/JPY is the main one. Working timeframe H2 (how to set this timeframe, see our video).
The system is based on 4 lines called White 1 (White 1) and White 2 (White 2) 2, Yellow 1 (Yellow 1) and Yellow (Yellow 2). The first line is always located above the second.
According to the strategy, the market is divided into 3 States: trend, no trend, and nothing.

 

Trend:

Uptrend: White 2 > Yellow 1 and White 2 on the current candle > White 2 on the previous candle
Downtrend: White 1 Yellow 2 and White 1 on the current candle < White 1 on the previous candle

According to the strategy, the market is divided into 3 States: trend, no trend, and nothing.

 

Trend:

Uptrend: White 2 > Yellow 1 and White 2 on the current candle > White 2 on the previous candle
Downtrend: White 1 Yellow 2 and White 1 on the current candle < White 1 on the previous candle
No trend (Notrend):

Both lines – White 1 and White 2 – are located between Yellow 1 and Yellow 2. the directions of the White and Yellow lines are different.
As the authors of the strategy promise, this system will be enough to help you make money on Forex.

Let's analyze the trade entry signals:

Entering a sell trade in the absence of a trend: when the price touches the first white line, and enter the trade.

Exit the trade: if the lack of a trend turns into nothing, You must close the trade.

Entering a buy trade in the absence of a trend: when the price touches the second white line, enter the trade.

Exit the trade: if the lack of a trend turns into nothing, You must close the trade.

The entrance is in an uptrend: when the price crosses the second white line, enter a buy trade.

Exit the trade: if the trend goes to nothing, you must close the trade.

The entrance is in a downtrend: when the price crosses the first white line, you enter into a deal for sale.

Exit the trade: if the trend goes to nothing, you must close the trade.
Start the summer with benefits – learn for free how to trade using the Chinese strategy "Kung fu". After spending just one hour of your time, you will master the base of the new trading system, compare its effectiveness with the effectiveness of the 008 Robot, learn how to get it for free, and get acquainted with the results of the trading month for the main robots. Perhaps you should not look for the Grail abroad.

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