Trading terminal: MetaTrader 4.
Tools: any currency pairs, mainly trend (major) – dollar yen, eurodollar, dollar franc, pound dollar.
Indicators : moving averages 4 pcs.
Time interval: from 1 hour to day (H1-D1).
The Base 150 trading system created a real sensation among domestic and foreign forex traders after experienced traders began to publish their results one by one. Most of the traders represented had almost 80% of profitable trades, and impressive profit margins. In addition, the strategy attracted attention for its simplicity, accurate signals and, of course, high efficiency.
However, not all newcomers managed to repeat the results of the pioneers. First of all, the newcomers did not take into account a number of factors, which the journalists of the trading system decided to keep silent or forgot to mention. Secondly, many novice traders did not quite correctly interpret all the conditions and signals of a trading strategy.
In this review, we will examine in detail the sensational Base 150 trading strategy for forex trading, and also definitely present all the conditions for profitable trading.
Principle of strategy
The base 150 trading system is based on the use of the most accurate and proven moving average variations with a combination of breakdowns of the strongest price levels. The entry into the transaction is carried out on kickbacks, which provides the safest stop and the installation of the minimum stop loss size.
Features of the Base 150 trading strategy
The natural market process after the breakdown of a strong level of support or resistance is a sharp impulse that removes the feet of the opposing bidders, after which a pullback occurs. This rollback is formed to remove those who hurried to the entrance to the breakdown, as well as a set of positions by large players. It is at this point of the rollback after the breakout pulse that we will enter the position in the direction of the burst, which will allow us to enter with a minimum stop loss size and at the same time with a very solid movement potential.
Determining key price levels is a rather complicated and fussy task that can be replaced with high efficiency by correctly selected moving averages . Thus, we will use the slow sliding with parameters 365 and 250 periods as dynamic support and resistance levels.
In order to confirm the end of the rollback and enter the transaction at the best price, we will use two more additional moving averages, which this time will be fast – 25 and 6 periods.
The trading strategy shows the best results on positional timeframes, where the impact of trading noise is minimal – 4-hour and daily charts. Additionally, to improve the indicators of entry, we will use a timeframe one period lower than the one used. So, if you chose the daily schedule as the main one, then to search for the entry point you should switch to H4, and if your work schedule is H4, then for the entry point switch to the timeframe.
The principle of the Base 150 trading strategy makes it possible to catch strong trend movements from the very beginning, so if necessary, you can use not a fixed stop loss, but one of the variations of the trailing stop. Despite the possibility of a loss in some positions, you should understand that subsequent tech profits will more than cover all costs at the beginning of the journey or at the stage of development.
Long entry rules
To buy a currency pair, you should wait for the following signals:
- The price crossed the slow moving average from the bottom up.
- The fastest moving average MA: is on the same level or close to, but above the slow moving average.
- After the price is rolled back and the fast MA is touched on the work schedule, we switch to a shorter period and look for an entry point. It is important to enter only on the first contact with the price of fast MA, the subsequent tests are no longer interesting for us.
- Similarly, we are looking for an entrance after a reverse touch of one of the slow MAs or the Moving Average with a period of 25.
After the corresponding signals are received on the main working timeframe, we switch to a shorter period. For example, working TF H4, switching to H1 and waiting for confirmation – closing the hour above the corresponding level. After entering, set the stop loss for the nearest local low on the hourly chart, and set the main take profit (provided that you do not use partial closing or trailing stop) set at a distance of two stop loss from the entry point.
To maximize the filtering of transactions and the use of a conservative approach to trading on this system, you can apply an additional filter. After the execution of the main signals, you should wait for the return and touch the price to the nearest slow MA. You can also use both entry methods and at the second touch add to the main position.
Short entry rules
- The price chart of the instrument crossed the slow moving average from top to bottom.
- The moving average with a period of 6 is at the same level or close to, but below the slow moving average.
- When the price after the breakdown touched the fast moving average, we move to a timeframe below the main one and enter the position. On the younger timeframe, we are waiting for the candles to close below the level and the formation of reversal patterns for price-action. It is important to look for an entry point only on the first contact with the price of the moving average. Subsequent strategy tests are no longer relevant.
- Similarly, we are looking for an entrance after the price touches backward from the bottom upwards of one of the slow MAs or the Moving Average with a period of 25.
For additional filtering of deals, especially closing positions, pay attention to the nearest support and resistance levels on the price movement path.
The Base 150 strategy is positional and conservative, so the risk is minimal, with the possibility of opening several positions for different instruments. According to the basic rules of money management, it is worth risking no more than 2-3% of the total capital in one transaction, so count the lot size before entering to comply with this rule.
The positional forex strategy “Base150” is a very powerful tool in capable hands. First of all, its uniqueness lies in the use of the most popular and statistically correct moving average periods for determining key levels and zones of rollback. Also, the advantage of the system in working on higher timeframes, which differ in the minimum amount of market noise.
Before using the strategy, it is recommended to drive the trading system through the tester, or at least look at the processing of signals on the history. Never forget about the rules of a risk manager and take calmly stop-losses – this is part of our work, without them, unfortunately, in any way. Successful bidding and profit.