Every trader has their own favorite strategies for trading on the Forex market. However, as the competition is getting fiercer, still they keep on looking and trying new things. Today, we introduce you to a Forex Strategy named Puria Method – a simply effective trading system which may improve your profitability to earn at least 50 pips a day.
What is Puria Strategy
The method is a specially good fit for daily taking-profit traders. In order to serve such a behavior, a Forex strategy must be simple enough to be set up quickly and show clear indicators for buy-in and sell-out orders. Puria Method requires only three Moving Averages with different periods and one MACD, which are available in popular trading software like Metatrader 4.
There are many trading strategies which work in the foreign exchange market. Sooner or later, every trader finds such a trading system that reflects his character most accurately. All people have different perceptions of risk and work with different intensity. For example, there are some players who tend to trade exclusively on long-term charts, and refer to the terminal occasionally only to check or adjust the trading positions.
Installing the machine
Set the MAs on the hour (H1) or half-hour (M30) charts – depending on the conditions above:
- Moving Average 1 : Period MA – 85, Method MA – Linear Weighted, apply to Low, color Moving – choose red;
- Moving Average 2: Period MA – 75, Method MA – Linear Weighted, apply to Low, color Moving – choose red;
- Moving Average 3: Period MA – 5, Method MA – Exponential, apply to Close, color Moving – select yellow.
Set the MACD indicator with the following parameters: Fast EMA 15, Slow EMA 26, MACD SMA 1.Conditions for purchases in the Puria Method:
- Make a buy-in order as soon as the yellow moving average crosses the two moving averages upward and the confirmation from the MACD indicator is received (one bar closed above the Zero level);
- Set a stop-loss at 14 pips. A deal closed as the stop-loss happened is very rare;
- Close the deal when the exchange rate meets the take-profit point as the details mentioned above. In this example, we take the AUD – JPY, therefore, the take-profit point is 15.
Pros and cons
- Provides easy-to-spot indicators for intraday traders;
- Requires popular built-in indicators;
- Easy to install and follow;
- Provides a detailed guide to make decisions on buying and selling.
- Necessitates daily, even hourly market observation;
- Requires patience and good emotion control.
The Puria Method is an effective technical strategy with quality signs and visual indicators. Given the H1 time interval and the recommended take-profit plan, this strategy is incredibly suitable for intraday traders. Coming with many advantages and a very specific profit threshold for each day and each currency pair, this is another good shot to consider among other effective strategies. As usual, to remember exactly the signal movements and adhere strictly to the mentioned rules are compulsory for a success in this game.