Stochastic With Regression Channel Trading Strategy Is a simple system based on the idea that prices always tend to return to the central region of the regression channel.
- Currency pairs: any
- Timeframe: M5 and higher, optimal – H4 and D1
- Trading time: any
- Risk management: choose such a lot size that the risk is no more than 2-5% of the deposit per trade
- Linear regression (LR period 60, STD 1 0.618, STD 2 1.618, STD 3 2.618)
- HMA with arrow and alert (15)
- Stochastic Oscillator (5, 5.5)
Installing indicators and system template
- Unpack the archive with templates and indicators
- Copy the indicators to the MQL4 folder -> indicators
- Copy the templates to the templates folder
- Restart the terminal
- Opening the chart of the required currency pair
- Install a template named Stochastic With Regression
The graph should look like this:
Signals indicating the opening of a buy position
- the price is below the red channel;
- a blue up arrow appeared;
- Stochastic lines cross from bottom to top.
Signals indicating the opening of a sell position
- the price is above the red channel;
- a red down arrow appeared;
- Stochastic lines cross from top to bottom.
Setting stop loss and take profit
- stop loss is set above / below the previous local high / low;
- take profit is set at a ratio of 1.15: 1 to stop loss.
Before using the Stochastic With Regression trend trading strategy on a real deposit, we recommend testing it on a demo account.
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