Rapid
Dollar system pure trend following is a forex strategy created by
Toshko Raychev. The trading system is composed by two indicators:
Rapid Dollar System consists of two custom
indicators: RD Bands and RD lines.
RD
Band
RD
Band is a custom indicator that is based on the trend direction. By
just one look at it you can see whether to look for long (buy) or
short (sell) trades. Blue color represents uptrend and possible long
trades, while orange represents downtrend and possible short trades.
It also consists of a middle white line, that will help us define
the entry signals.
RD
Lines
The
RD Lines is another custom indicator built for this system and it's
based on moving average calculations. It consists of two lines:
Upper
green line Lower red line The upper line will help us in
determining long entries, while the lower line will help us in
determining the short entries. If you decide to use the Stop Loss
trailing method for exiting the trades, we will trail the Stop Loss
using those two lines.
Buy
On
the image above I’ve drawn a white vertical line through the signal
candle.
This represents the moment that all the conditions for long (buy)
entry were met as per the rules below:
1.
The price must close above the white line of the RD Band indicator
2.
Next (signal) candle must close above the green RD Line
3.
If both conditions were met, place the entry order at at the close of
the
signal candle
4.
Place the Stop Loss at the red RD Line of the signal candle
5.
There are two choices for exiting the trade:
a.
Place Take Profit at 1:1 ratio; or
b.
Trail the Stop Loss on the red RD Line
Sell
On
the image above I’ve drawn a white vertical line through the signal
candle.
This represents the moment that all the conditions for short (sell)
entry were met as is set out as per the rules below:
1.
The price must close below the white line of the RD Band indicator
2.
Next (signal) candle must close below the red RD Line
3.
If both conditions were met, place the entry order at at the close of
the
signal candle
4.
Place the Stop Loss at the green RD Line of the signal candle
5.
There are two choices for exiting the trade:
a.
Place Take Profit at 1:1 ratio; or
b.
Trail the Stop Loss on the green RD Line
Buy
example
This
is a trade I took on the USDCHF pair, H1 timeframe using 1:1 risk to
reward
ratio for setting my target.
First,
the price broke and closed above the white line of the RD Band
indicator
(1). After that, the next candle closed above the green RD Line(2),
which
created a valid entry signal for the trade. Trade was eneter at the
close
of that candle (3). Stop Loss was placed on the red RD Line, directly
below
the signal (entry) candle (4). Take profit was set using 1:1 risk to
reward
ratio (5) and it was reached 3 candles after the entry.
Sell
Example
his
is the trade I took on the EURUSD pair, H4 timeframe and I used a
hard Take Profit Target set at 1:1 risk to reward ratio.
First,
the price crossed below the white line od RD Band indicator and
closed below it (1). The next candle closed below the red RD Line
(2), which created an entry signal that was taken on the close of
that candle (3). Stop Loss was placed on the green RD Line, directly
above the signal (entry) candle (4). Take Profit was placed at the
same distance from the entry as the Stop Loss, using 1:1 risk to
reward ratio (5) and it was reached 5 candles after the trade was
taken.
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