Short description of the Strategy and Basic Principles of Trading Plan.
The strategy is conservative, with an expected profit of 5-10 %. The strategy is based on the Elliott Waves, the main core of which is the changing the mood of investors in the form of recognizable models displayed on the chart.
Follow the strict rules developed by Robert R. Prechter. for each model, analysis and search for a change in trend in the markets will be carried out. The strongest side of this particular method is the identification of models and situations which confirms either continue the trend or complete it, which gives us more very good entry points!
Opening the deal
Almost all deals are opened as market orders with SL and very rare we use Pending orders. The risk-to-income ratio is mainly projected on the basis of 1/3 – 1/5 depending on the length and duration of the intended wave.
Mainly, no matter of the model, all trading plans begin to be built only when forming 5-3 formations as part of the expected movement in one direction or another. When such a formation appears, a stop order is placed at the end of the first wave as a part of 5-3 formations, protective stop for possible losses is placed beyond the level of the end of the previously identified model.
List of trading instruments: EURUSD; GBPUSD; GBPJPY; USDJPY; EURJPY; NZDUSD; USDCAD; AUDCAD; Gold
Closing the deal
The closing of the deal is base on: Stop Loss, Stop Loss in BreakEven, Take Profit.
Also the deal can be closed based on the current market situation if the current working model starts to take a complete form, not reaching the estimated aim.