Fozzy strategy is becoming more and more popular because of it's simplicity and due to the fact that is quite mechanical, you dont have to spend hours in front of your computer.
What you need:
1. 4 hours or daily timeframe
2. An 8 period RSI indicator
3. An 8 period simple MA
4. A 20 period Bollinger Bands
Go long when RSI is below the middle Bollinger Band and 8 period MA crosses RSI from below to above
Go short when RSI is above the middle Bollingter Band and 8 period MA crosses RSI from above to below
Use a stop loss equal to low/high of previous bar.
I close my positions when 8 period MA crosses the middle Bollinger Band, but you can always choose a different method, like setting up a fixed number, lets say 25 pips. Dont push it, wait for the cross to be clear and stable before opening a position, like in the attached picture
---- by; FxPalace-FxFozzy.------
No comments:
Post a Comment