Yet Another very simple Fib Strategy

This is a strategy I've been working on for a week or two.

I don't know if it's perfect or needs improvement, but it seems to have a lot of promise. You will tell me.

EDIT: After two weeks of demo trading I can say it is a winner and I will continue the demo for two weeks and start using it.

Target

The idea of ​​this strategy is to select the first retracement of the trend, usually a pip value.

set up

First you need to set your small fiber to the following levels

-1, -.618, -.382, 0, .382, .5, .618, 1, 1.382, 1.618, 2

Label them respectively: T3, T2, T1, Low, Short, Pivot, Long, High, T1, T2, T3.

Add to the chart, set Momentum to 14 (default) and Level to 100.

time range

Any...but if TF < H1 is fast, you will have to watch the chart almost the whole time. I started with M15 but can't track the transaction. If you can watch your computer from time to time and work fine every day, the H1 will be fine. Please note that multiple identical transactions may appear on different TFs.

rule

This is where it's simple. We assume we are in a long trade, if you are in a short trade, just reverse the rules.

When momentum is above 100, you are looking for a long term setup. All you have to do is look for a clear uptrend. Only experience allows you to appreciate a "clear" uptrend. It can be a breakout of resistance, a reversal pattern, a candle action price pattern, a Bollinger Band expansion, etc... I personally prefer a clear breakout of resistance.

The next step is to plot Fibonacci based on the last recent high and the start of the uptrend (usually resistance is a good start or the last swing low)

The last step is to set up your order. Place a long pending order on the long Fibonacci (0.618) + spread, a stop loss a few pips below the short Fibonacci (.382) (depending on your TF) and a take profit on T1, T2 or T3.

If the trade doesn't trigger and the price makes a new high, then redraw the Fibonacci function to accommodate the change (just change the highs of the Fibonacci function, don't hit the lows until a new swing low occurs) and adjust your pending orders accordingly or place new pending orders if necessary (usually because a stop loss would increase your risk/trade)

If momentum starts to go below 100, cancel your trade.

T1 gets hit almost all the time. T2 gets hit often. T3 gets hit sometimes. Some statistics need to be done here)

safer entry

Wait for the price to retrace into the long/short zone and only place a pending order once the price has retraced into this zone.

Track trade

When you can't watch, you can use an EA to manage your trades. A Swiss Army Knife (attached, but don't ask for the source, I don't have one) is very useful for this.

What you want to do is, once you feel positive about the number of pips you are risking, set your stop loss to BE (or ultimately +1 if you are greedy). Then as the price progresses, move the stop a few pips below the previous Fibonacci. For example, if price has reached T2 and your target is T3, then your stop loss should be a few pips lower than T1.

risk management

It's up to you, the greater the risk, the greater the reward, but if you lose multiple times in a row, your account will sink faster. I recommend a maximum of 2% of your account per trade (so 5 losing trades in a row would be -9.7% of your total assets)

This strategy has a very high reward/risk ratio. T1, T2 and T3 give 3/1, 4/1 and almost 6/1 respectively.

Wait...that's all. No further rules or mumbo jumbo indicators are needed.

You can even get away from momentum if you have good insight into trends ending in indicator-free charts.