High volatility (High volatility) | Foreign exchange EA download-MT4/MT5 resources-MetaTrader 5 resources

Dear Trader,

I developed a new trading strategy. I will now explain this system in more detail. It differs in several elements:

Where to trade <br> EURUSD H4 Chart 10/10/2024:

1. We trade in the blue zone. We can trade outside the zone, but only with the trend.
2. The range is set by taking the maximum value of the last 5 weeks and the last 5 days. If you use Fibonacci for this range, trade in the 100-75% and 0-25% areas. This means we could see potential reversals in these areas.

When to trade :

1. We always sell bullish candles and buy bearish candles
2. We only trade using the Volatility Efficiency Ratio (VER in the h1 chart). (High - Low) / (Daily ATR 10 Shift 1) Expressed as a percentage. As a minimum, we like to set it to 30%. For example, if the ATR of EURUSD is 100 pips and the candle size is 30 pips, we have reached 30%;
3. Additionally, we need the full body of the H1 candle, which could mean no shadow at the bottom or top of the chart, depending on the sell direction with no shadow at the top and the buy direction with no shadow at the bottom.

trade management

1. Downsizing: If the price moves further relative to the initial position, additional entries can be made, averaging between 40% and 50% VER. In the event of severe volatility, these levels may expand to 70%, 80% or higher. It is important to start with a smaller initial lot size to manage risk effectively.
2. Exiting a trade early: Trades usually end quickly, usually within 20-30 minutes, sometimes just minutes or even seconds, depending on the volatility of the instrument. The goal is to secure profits without waiting for a complete reversal.
3. Alternative exit strategy: As an option, you could use the midpoint of the Bollinger Bands or the midpoint of the last 24 M5 candles as the 50% retracement level. Significant price movements often result in reversals to the 50% level.
4. I generally avoid using stops, but as a rule of thumb I would use a 20% ATR for the daily range or a 20% VER ratio above or below the price. If the price moves against me, I tend to buy or sell more. However, sometimes I'm completely wrong and I close the deal. The key is not to hold on to your position for too long if the market clearly goes against you. The important thing is not to predict the direction correctly but to make the right choice at the right moment. Ask yourself: Do you want to correctly judge the direction of the market, or do you want to make money?

Example <br> In the recent example on the EURCAD H1 chart, the price is above the defined range, which means that only bullish trades are being considered. A large bearish candle appeared with the VER ratio reaching 41%.

At this point, I monitored the 5-minute chart and observed a small pullback away from the trading low. My main focus is the income statement. Once a trade becomes profitable, my goal is to close it quickly and either move on to the next opportunity or exit the trade for the day.

I will provide you with daily/weekly updates.

cheer for now