What is the basis of most forex strategies? Based on the principles of “trendiness” of the market, most of the time, which, in the opinion of most novice traders, has a definite focus. But more experienced players know that the obvious trend is seen in the movement of exchange rates only in every fourth case, and three quarters of the total time the market shows wave-like fluctuations or movement within a side price corridor – the flat. How to trade with profit, if the game on trends is not always possible. Apocalypse strategy will help to deal with trade in the absence of obvious tendencies to rise or fall in price.
To make sure that the statement that the trend is not the most common condition for the market is true, the price movement charts help. Regardless of the time period chosen, exchange rates show an enviable constancy of up to 75% of the time being in a flat state or experiencing minor fluctuations. And this can already be attributed to the category of trends, which can be easily turned to the benefit of the Forex market. Simply put, any steady trend can be monetized.
Flat trading and Martingale method
How can you “play” on minor price fluctuations? The easiest way is to apply Martingale’s strategy based on the fact that the price is likely to continue to move in a given currency corridor. Entering the market in this case is carried out at the moment of price fluctuation in the opposite direction to the trader’s expectations. And in case of reverse movement, the profit is fixed in quite a short period of time. The only risk in this case is that Martingale should be used only in the absence of a pronounced trend – the presence of a pronounced trend significantly increases the rate of growth of exchange rate values. And that could lead to a banal deposit drain. What’s to be done, then? The answer is simple – it is necessary to choose for trading cross-rates, the volatility of which is always lower than that of the main pairs, in which the U.S. dollar is present.
How else can one minimize the risks of trading in the flute? To give up trading on news and trend trading, focusing on those time periods when the market shows relatively small wave fluctuations. In principle, even an Expert Advisor can cope with this task – a special program that allows you to automate the trading process.
Apocalypse strategy and trading advisors
Since the Apocalypse strategy implies using a flat market for trading, you can do without daily vigils at the monitor – you simply do not need to trade every day. After all, it is more important than ever to rely on common sense and soberly assess the trading situation here.
Trading with the use of an Expert Advisor in this case looks like the best option. But there are subtleties here, too. And, in particular, it should be remembered that trading within the framework of the Apocalypse strategy makes sense only in the period of maximum market activity. Accordingly, you should enter the trade between 9 a.m. and 11 a.m. and finish your work by 5 p.m. Moscow time.
But the rule of trading at a certain time works only if there are no other aggravating factors – the release of news, the formation of a stable trend on the traded currency pairs. You can always specify the terms of news release in the economic calendar – a real assistant to a professional trader, you can easily find the calendar on our website.
It should be noted that all of the above does not apply to the news on the European currency – as practice shows, they mostly do not affect the trading situation.
If, however, you see unexpected changes in the evening or night before the news, followed by unstable market dynamics, it is also better not to trade. In this case, it is hardly possible to predict the trade situation.
Another important point is the morning market dynamics, the so-called “morning flute”. It is its study that allows you to get an idea of the best point of entry into the market in a particular trading situation. It is enough to display price fluctuations in the form of a chart and draw support/resistance lines. And as soon as the “breakthrough” of the level in the flute happens in the right direction, you can start trading and start the work of the trading advisor.
It should be taken into account that, in addition to the presence of a stable trend, when trading according to the Apocalypse strategy, it is equally important to catch the moments of low volatility of the flat. After all, in this case, the market practically does not hesitate. Which means it’s gonna be a lot harder to make money from.
Another feature of this strategy is its short duration – all orders are opened and closed within a trading session, without creating pending orders. There is no need to count on superprofits either – the standard profitability of this strategy is about 2-3% per day.
Apocalypse strategy: risk management
Like any other strategy that uses the Martingale method, the Apocalypse implies high risks on trades. Sooner or later, the situation could get out of hand. And there will be a margin call, as well as a possible loss of deposit funds. How can the risks be minimized in this case?
It’s enough to follow some simple rules:
1) Don’t forget to withdraw your profits. This can be done either by achieving a return of 100%, or gradually – once a week or by achieving a certain return.
2) Do not keep all funds on deposit. As the volume of earnings increases, the amount initially invested should be deducted from the turnover. Thus, even if the deposit is drained, you will remain “at your own”, and in the risk zone there will be only earned funds.
3) Do not leave transactions unclosed. Control the work of your trading advisor. Don’t leave everything to chance. And you won’t have to be disappointed in your trading strategy.